PV revenues rebound but margins fall in Q2’09, strong Q3’09 outlook for chinese players: YMR

AUSTIN, USA: Young Market Research (YMR) has released the first issue of its Weekly PV Supply Chain Health Report.

This unique report provides its users with all the data and insights released by publicly traded PV supply chain companies in their quarterly earnings reports, stock exchange filings, press releases and conference calls along with unbiased analysis with 24 hours of their earnings calls with historical data back to Q1’07.

The financial and industry data, covering over 100 different metrics, is incorporated into a pivot table which makes comparisons by company, country, technology, level of integration, etc. extremely easy. The results are also aggregated to provide industry and financial metrics and trends on a weighted average.

Analysis is provided in a PowerPoint file which can easily be incorporated into internal presentations. The first issue, covering Q1’07 – Q2’09 results and guidance for Q3’09 and beyond, amounted to over 330 slides covering 25 different companies.Highlights from the first issue include:

Revenues rebound: After falling 44 percent from Q3’08 to Q1’09, revenues rebounded 18 percent Q/Q in Q2’09 to $4.65B as shown in Fig. 1.

Fig. 1: Q1’07 – Q2’09 Revenues for 25 Publicly Traded PV Supply Chain ManufacturersSource: YMR’s PV Supply Chain Health Report. Includes Arise Technologies, Bosch Solar, Canadian Solar, China Sunergy, DelSolar, Energy Conversion Devices, E-Ton Solar, Evergreen Solar, First Solar, Gintech, JA Solar, LDK, MEMC, Motech, Neo Solar Power, Q-Cells, REC, ReneSola, Sanyo, Sharp, Solarfun, SunPower, Suntech, Sunways, Trina Solar and Yingli Green Energy.

However, the gains are not being shared equally by all segments, regions or companies. The cell/module suppliers are growing faster than the polysilicon/wafer suppliers, 18 percent to 5 percent Q/Q in Q2’09, as polysilicon prices fall faster than cell/module prices and cell/module shipments outpace polysilicon/wafer shipments on significant inventory at cell/module suppliers.

Margins continue to decline: Profit margins continued to worsen from Q1’09 to Q2’09 as shown in Fig. 2 on lower prices and the fact that slower than expected demand made it difficult for manufacturers to sell-through their high-priced polysilicon/wafer inventory.

Fig. 2: Q1’07 – Q2’09 PV Supply Chain MarginsSource: YMR’s PV Supply Chain Health Report

Some companies were not able to take advantage of the rapid decline in polysilicon spot prices as they were struck in long-term, fixed price contracts or reduced shipment volumes prevented them from turning over their expensive polysilicon or wafers. Cell/module manufacturers again outperformed polysilicon/wafer suppliers, with gross margins of 19 percent vs. 8 percent, due to large inventory write downs at wafer manufacturers.

North American suppliers grew the fastest and were the most profitable: Unlike all other regions, North American suppliers’ revenues rose from Q3’08 to Q2’09, up 11 percent, including 25 percent Q/Q growth in Q2’09 thanks to First Solar’s cost leadership, rapid capacity growth and high utilization.

In addition, only North American suppliers were profitable when aggregated by region with average gross profits of 38 percent, operating margins of 19 percent and net margins of 17 percent, as shown in Table 1.

Table 1: Q1’07 – Q2’09 Cell/Module Manufacturers; Gross, Operating and Net Margins by RegionSource: YMR’s PV Supply Chain Health Report. Germany includes Bosch Solar, Q-Cells, Sunways and SolarWorld. China includes Canadian Solar, China Sunergy, JA Solar, Solarfun, Suntech, Trina Solar and Yingli. Taiwan includes DelSolar, E-Ton Solar, Gintech, Motech and Neo Solar Power. North America includes Arise, Energy Conversion Devices, Evergreen Solar, First Solar and SunPower.

Chinese manufacturers experienced the largest decline, fastest growth: Chinese cell/module manufacturers experienced the largest declines from Q3’08 to Q1’09, down 61 percent, and experienced the fastest growth in Q2’09, up 32 percent, but are still off 48 percent from their Q3’08 results.

Chinese companies improved their gross margin performance from 10 percent to 16 percent, and had positive operating margins but experienced -8 percent net margins due to write-offs from Solarfun and Yingli. Excluding the charges, all Chinese suppliers had positive operating margins.

German manufacturers lost less ground than Chinese manufacturers with higher gross margins: German manufacturers’ revenues rose 11 percent in Q2’09, but are still off 33 percent from Q3’08, losing less ground than their Chinese competitors.

German companies had the second highest gross margins at 24 percent, but experienced negative operating margins due to write-offs from Bosch Solar and Q-Cells, which experienced a surge in inventories and negative operating profits as the market favors the more vertically integrated companies due to their greater visibility into end market demand and greater control over their cost structure.

All Taiwan suppliers achieved negative operating margins in Q2’09: Taiwan suppliers, which are all cell-only suppliers, had the worst gross and operating performance in both Q1’09 and Q2’09 which is indicative of the lack of leverage cell-only manufacturers have in today’s PV market.

All the Taiwan suppliers experienced negative operating margins in Q2’09. Taiwan manufacturers experienced the smallest revenue increase in Q2’09, up just 1 percent, and are tied with Chinese manufacturers for the largest decline since Q3’08, down 48 percent.

Q3’09 looks to be strongest quarter of the year: Seasonally, Q3’09 looks to be the strongest quarter of the year although the development of the USA and China markets could potentially enable Q4’09 to be just as strong.

Some manufacturers are expecting Q3’09 to be exceptionally strong as a number of projects were deferred from 1H’09 as project developers waited for prices to fall further and at the same time developers are looking to finish projects before the end of the year fearing budget reductions and lower subsidies/feed-in-tariff rates. However, the gains are not expected to be shared evenly.

Chinese companies have brightest outlook: Chinese companies are expecting rapid growth in Q3’09 as seen in Table 2. At these growth rates, some of these manufacturers expect to achieve full utilization.

Table 2: Chinese PV Manufacturers' Q3'09 Shipment Guidance Source: YMR’s PV Supply Chain Health Report.

On the other hand, European companies have a much different outlook and are reducing capacity utilization or taking capacity offline as shown in Table 3 due to excessive inventories from slower than expected 1H’09 demand. Taiwanese companies are hoping to return to profitability in 2H’09.

Table 3: European Manufacturers’ Q3’09 OutlookSource: YMR’s PV Supply Chain Health Report

As their c-Si competitors close the cost gap and to spur demand in a weak financing environment, First Solar implemented a rebate program in Germany which it expects to cost $40-$60M in 2H’09 which along with slower capacity growth implies slower Q/Q growth for the leading North American company.

In addition to balance sheet and income statement data, users of this report will also gain insight into key trends on topics including shipments, production, ASPs, polysilicon costs, wafer costs, silicon to module costs, silicon consumption per watt, wafer thickness, efficiencies, existing and future capacity, capital expenditures, regional shipment trends, company supply chains, company guidance, California market share and much more.

According to YMR President Ross Young: “The Weekly PV Supply Chain Health Report is ideal for industry analysts, financial analysts and anyone in strategic marketing or finance departments within the PV supply chain. It will save its users hundreds if not thousands of hours in tracking and compiling this information freeing them up to make important decisions derived from this report.”

SolarCraft helps Goldeneye Winery switch to solar

NOVATO, USA: Novato-based SolarCraft announced the completion of a 32 kW solar electric system at Goldeneye Winery in Philo, CA. The winery, in the heart of Mendocino’s Andersen Valley, is now powered by the sun.

The 32 kW solar electric system at Goldeneye consists of 144 SunPower 225 watt solar panels that will power Goldeneye’s winemaking operations with renewable, green energy. The roof-mounted system spans 2,100 square feet and is expected to generate 48,670 kilowatt hours annually. The solar panels provide clean electricity while insulating and protecting the roof.

“Because Goldeneye is dedicated to crafting world-class Pinot Noir from the Anderson Valley, our relationship with the environment is extremely important to us,” says Courtney Dyar, Operations Manager for Duckhorn Wine Company. “As a result, when we set out to design and build a cutting-edge, energy-efficient winery, incorporating solar was a major part of our design criterion. Not only does the array SolarCraft installed for us sustainably address our energy usage, it also helps to mitigate our impact on the Earth in a way that reflects our identity, and our commitment to the Anderson Valley.”

The new system will enable Goldeneye Winery to generate enough clean electricity each day to power over 14 average homes. It will spare the air nearly 25 tons of harmful greenhouse gases annually. Over the next 30 years, the air pollution saved will be equivalent to driving over 1.7 million miles. The system will pay for itself in approximately 6 years.

SolarCraft is one of the most experienced solar energy contractors in California. For more than 25 years the certified Green Business has been providing Solar Thermal and Solar Electric services including consulting, design, installation, monitoring and maintenance.

Spire sees record revenues of $22.2 million in Q2

BEDFORD, USA: Spire Corp. reported revenues from continuing operations for the second-quarter ended June 30, 2009 of $22.2 million, a 39 percent increase from $16 million for the same quarter of 2008.

Net loss for the second-quarter of 2009 was $4.6 million, or $(0.55) per share, compared with a net loss of $269,000, or $(0.03) per share, for the second-quarter of 2008.

These losses include losses of $201,000 and $167,000, or $0.03 and $0.02 per share, for the second-quarter periods of 2009 and 2008, respectively, from the company’s Medical Products Business unit which has been classified as discontinued operations.

Revenues from continuing operations for the first six months ended June 30, 2009 were $33.6 million, a 13 percent increase from $29.6 million for the same six month period in 2008.

Net loss for the six months ended June 30, 2009 was $6.1 million, or $(0.73) per share, compared with a net loss of $792,000, or $(0.10) per share, for the same period in 2008.

These results include losses of $391,000 and $281,000, or $(0.05) and $(0.04) per share, for the six month period ended June 30, 2009 and 2008, respectively, from the company’s Medical Products Business unit which has been classified as a discontinued operation.

Also, during this period we initiated the dissolution of our solar systems joint venture which represented a loss of $1,023,000 in the first six months of 2009.

Net cash used in operating activities of continuing operations was $1.2 million for the six months ended June 30, 2009, compared to net cash provided by operating activities of $4.0 million for the same period in 2008. As of June 30, 2009, the company had cash and cash equivalents of $5 million of which $3.5 million is unrestricted.

Roger G. Little, Chairman and CEO, said: "We are pleased that we had record revenues this quarter with solar products and services, growing 51 percent from a year ago, and now representing 86 percent of our total revenue. A significant contribution came from the acceptance of our highly automated 50MW/year module assembly line by Martifer Solar of Portugal.

"Spire re-directed its solar PV systems group to focus on Federal systems, after initiating the process of dissolution of its systems joint venture. Spire Solar Systems will provide American systems to Federal agencies creating American jobs.

"Spire Semiconductor continued to advance its solar cell technology by achieving a major milestone toward the 42 percent efficiency goal of its National Renewable Energy Laboratory contract for a triple junction, 500 sun, concentrator solar cell."

"To provide working capital for our growing solar business, we negotiated an expanded $8 million revolving credit facility with Silicon Valley Bank,” concluded Little.

LDK Solar's revenue drops in Q2

XINYU CITY, CHINA & SUNNYVALE, USA: LDK Solar Co. Ltd, a leading manufacturer of multicrystalline solar wafers, reported its unaudited financial results for the second quarter ended June 30, 2009.

All financial results are reported in US dollars on a US GAAP basis.

Recent highlights:
-- Second quarter 2009 revenue was $228.3 million;
-- Shipped 231.7 MW of wafers, up 20.9 percent year-over-year;
-- Secured an RMB500 million (equivalent to approximately $73 million) short-term loan from The Export-Import Bank of China, and anRMB 500 million three-year loan from Huarong International Trust Co. Ltd;
-- Reached mechanical completion of the first 5,000 metric ton (MT) train in its 15,000 MT annualized capacity polysilicon plant in Xinyu, China.

Net sales for the second quarter of fiscal 2009 were $228.3 million, compared to $283.3 million for the first quarter of fiscal 2009, and $441.7 million for the second quarter of fiscal 2008.

For the second quarter of fiscal 2009, gross profit was negative $205.5 million, compared to $4.9 million in the first quarter of fiscal 2009, and $112.3 million for the second quarter of fiscal 2008.

During the preparation of its second quarter 2009 financial results, LDK Solar's management determined that an inventory write-down and loss on firm purchase commitments of polysilicon materials of approximately $175.8 million and $16.7 million, respectively, was required as a result of the continued rapid market price decline for solar wafers.

As a result, gross margin and results from operations were negatively impacted in the second quarter of fiscal 2009.

Gross margin for the second quarter of fiscal 2009 was negative 90 percent, compared to 1.7 percent in the first quarter of fiscal 2009 and 25.4 percent in the second quarter of fiscal 2008.

Loss from operations for the second quarter of fiscal 2009 was $235 million, compared to a loss of $16.1 million for the first quarter of 2009, and compared to income from operations of $100.3 million for the second quarter of fiscal 2008.

Operating margin for the second quarter of fiscal 2009 was negative 102.9 percent compared to negative 5.7 percent in the first quarter of fiscal 2009 and 22.7 percent in the second quarter of fiscal 2008.

Excluding the inventory write-down and loss on firm purchase commitments of polysilicon materials, gross profit was negative $13.0 million, or a gross margin of negative 5.7 percent for the second quarter of 2009 and loss from operation was $42.5 million, or an operating margin of negative 18.6 percent for the second quarter of 2009.

Income tax benefit for the second quarter of fiscal 2009 was $29.5 million, compared to income tax benefit of $1.6 million in the first quarter of fiscal 2009.

Net loss for the second quarter of fiscal 2009 was $216.9 million, or $2.03 per diluted ADS, compared to a net loss of $22.5 million, or $0.21 per diluted ADS for the first quarter of fiscal 2009.

LDK Solar ended the second quarter of 2009 with $265.7 million in cash and cash equivalents and $123 million in short-term pledged bank deposits.

"Our results for the second quarter of 2009 reflect the prevailing operational challenges for the solar industry. The continued decline in prices for solar wafers impacted our top and bottom lines and required an additional inventory write-down for the company, which significantly impacted our margins in the second quarter," stated Xiaofeng Peng, Chairman and CEO of LDK Solar.

"As part of our ongoing efforts to realign our near-term strategy and operations with current industry dynamics, we remained focused on improving our cost structure, increasing wafer sales and ramping up polysilicon production.

"During the second quarter, we took a measured approach to capital spending and proceeded with implementing our curtailed manufacturing expansion plans. We believe this approach allows us to improve our strategic positioning while continuing to best serve our customers.

"We continued to ramp our polysilicon production and also achieved mechanical completion for the first 5,000 MT train of our 15,000 MT plant. Construction is proceeding as planned and we look forward to the cost savings benefits that we will realize once larger scale in-house polysilicon production commences," continued Peng.

"We are encouraged by a number of recent developments in the solar industry. Demand for solar wafers is beginning to turn more positive. The current momentum surrounding China's Golden Sun solar subsidy program reflects the long-term confidence in the local solar industry.

"We believe that we are well positioned during this critical early stage of development of the PV industry in China, and we are pleased to be negotiating contracts for a number of local projects. During the quarter, we also made significant strides in further diversifying our business by collaborating on a number of PV development projects, particularly in the fast growing European markets.

"As we continue to evolve as a leader in the solar industry, we look forward to expanding our growth opportunities once we overcome the near-term industry challenges," concluded Peng.

Business outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the third quarter of fiscal 2009, LDK Solar estimates its revenue to be in the range of $240 million to $270 million with wafer shipments between 260 MW to 300 MW and module shipments between 10 MW to 20 MW.

eSolar ushers in new era of solar energy by unveiling Sierra power plant

LANCASTER, USA: With 24,000 mirrors glimmering under the Antelope Valley summer sun, eSolar, a leading provider of modular, scalable solar thermal power technology, unveiled its 5-megawatt (MW) Sierra SunTower solar power plant.

The full-scale power plant, the only power tower of its kind in the US, produces electricity for Southern California Edison (SCE) and can power more than 4,000 homes in California's Antelope Valley.

The eSolar technology resolves many of the problems that have held back large scale solar in the past including cost, speed of deployment and proximity to existing transmission lines.

eSolar uses advanced software algorithms to precisely focus thousands of mirrors on a single point to efficiently harvest the sun's energy and achieve economies of scale with a smaller footprint than anyone else in the business.

"Today, we unveil a new blueprint for solar energy — one that leverages Moore's law rather than more steel," said Bill Gross, CEO of eSolar. "Sierra is just the beginning. Soon eSolar technology will be deployed worldwide to provide clean, affordable energy to hundreds of thousands of homes."

Constructed in less than one year, eSolar's Sierra SunTower power plant marks the first of several developments in the Antelope Valley region using eSolar technology. Over the course of construction, this project created 300 jobs.

"With today's historic plant opening, eSolar is proving that California's energy and environmental leadership are advancing carbon-free, cost-effective energy that can be used around the world," said Governor Schwarzenegger.

"Through measures such as AB 32 and the California Solar Initiative, I have worked to create an environment that allows companies such as eSolar to thrive in our state — creating green jobs, boosting our economy and preparing us for the energy demands of the future."

eSolar received the support and cooperation of the City of Lancaster throughout the construction process. "The City of Lancaster is proud to be home to the nation's newest solar power tower plant. This plant and eSolar's progressive growth plans throughout the Antelope Valley are the crown jewels in our ongoing effort to truly become the Alternative Energy Capital of the World," said R. Rex Parris, Mayor of Lancaster.

eSolar develops its California projects on parcels of previously disturbed private lands, avoiding many of the permitting and environmental pitfalls of development on pristine desert lands.

Located in northern Lancaster, Sierra SunTower is built on private land designated for heavy industrial use. The decision to site projects solely on private land is unique within the utility-scale solar industry, and the distinction has garnered support from local environmental advocates.

"eSolar demonstrates that pristine wildlands do not have to be sacrificed in order to keep the lights on with clean energy," remarked David Myers, Executive Director of the Wildlands Conservancy. "eSolar's efforts to reduce its impact on the surrounding environment demonstrates a level of foresight we hope to see from other solar developers in the future."

Sierra SunTower was fully financed and developed by eSolar, proving the rapid deployment, pre-fabricated method eSolar patented and pioneered. Building on Sierra's success, eSolar will deploy many more plants around the country and around the world.

In February, eSolar announced an agreement with NRG Energy, Inc. to develop three plants in California and New Mexico that will generate up to 465 megawatts of electricity using eSolar technology. Additionally, in March, eSolar licensed its technology to India-based ACME Group for approximately 1 gigawatt of eSolar solar thermal capacity.

"Today we take an important step to a new dawn of power generation," said David Crane, President and CEO of NRG Energy. "With eSolar demonstrating the commercial viability of solar thermal power on a large scale, and with NRG planning to implement the technology at scale across the Southwest, we will begin to harness the sun to power our lives."

Lotus Systems receives big order from German solar cell maker

GEISINGEN, GERMANY: Lotus Systems has received an order from a large German solar cell manufacturer to install fully automated wet chemical process lines for cell production. There was also an agreement to cooperate long term, and a total volume of more than €8 million is expected for the future. For more information about wet chemistry, see www.lotussystems.de/photovoltaic/wet-process-applications.

“Our innovative tool design decided it” says New Products Manager Hans Hauger, explaining how Lotus Systems beat out several other competitors. “We have incorporated new details everywhere –- in input and output stations, cleaning, etching and drying. All together, this makes for extremely high productivity and conserves substances like water, electricity, and chemicals.” The first system will be installed in January 2010.

“The photovoltaics industry needs new ideas to meet future quantity and cost demands,” says Joachim Mink, founder and CEO of Lotus Systems. “Every factory is different. We do not just listen to our customers well; we also do our homework and deliver both innovation and absolute reliability. I personally make sure of that.”

Entech Solar unveils next-generation products

FORT WORTH, USA: Entech Solar announced significant progress with its development programs for both its concentrating solar and skylight products.

Since March 2009 when Entech suspended manufacturing operations for its previous generation of concentrating solar systems, the Company has been fully dedicated to the design and development of its next-generation products.

Highlights:
* Successful completion of the preliminary design review and prototype of the next-generation concentrating solar product, ThermaVolt II.
* Filing of multiple provisional patent applications associated with the ThermaVolt II module.
* Successful completion of the preliminary design review of the patented tubular skylight.

Entech has successfully completed the preliminary design phase of its next-generation product in the ThermaVolt product line, ThermaVolt II, including the construction and operation of a prototype that produces both electricity and thermal energy.

Dr. Frank W. Smith, Entech Solar’s CEO, comments: "ThermaVolt II’s combined output of electricity and thermal energy produces four to five times the amount of energy compared to traditional photovoltaic systems. Through the net metering of electricity and the offset of natural gas, ThermaVolt II has the potential to be highly disruptive in the solar energy marketplace."

In addition to Entech’s previous concentrating solar energy patents, the Company has filed a number of new provisional patent applications associated with the ThermaVolt II design and manufacturing process to ensure appropriate protection of the company’s intellectual property and to allow public disclosure of certain product features and benefits.

ThermaVolt II leverages Entech Solar’s proven optical technology by using its proprietary arched Fresnel lens to provide about 20 times concentration of sunlight onto the solar cells, saving about 95 percent of the relatively expensive silicon cell material.

“For the past 25 years, our arched Fresnel lenses have demonstrated outstanding performance in the real-world environment, and ThermaVolt II will continue to use this proven optical concentrating technology,” said Mark O’Neill, Entech Solar’s CTO.

The product’s unique design is applicable for both ground and roof-mount applications, and focuses on low cost, manufacturability, ease of installation, compactness and high reliability.

The ThermaVolt II module’s size and shape are similar to those of a standard flat-plate PV module. The standard dimensions will ease adoption in the marketplace and expands Entech’s addressable market to include rooftop applications. The standard size also allows for a more conventional installation approach, greatly increasing the potential dealer and installer channels to market.

In addition, the fully-assembled, compact shape enables palletized shipping, resulting in reduced transportation costs.

In addition to its improved design, ThermaVolt II leverages well-known, existing semiconductor manufacturing processes using proven, off-the-shelf equipment and can be readily outsourced to low-cost, sub-contract manufacturers.

Entech’s ability to outsource the manufacturing of the ThermaVolt II module will allow for more competitive pricing and for readily increasing production volumes.

Nanomarkets' report on batteries and supercapacitors for smart grid

GLEN ALLEN, USA: The market for battery and supercapacitor storage systems for Smart Grid applications will grow from $1.5 billion in 2012 to $8.3 billion in 2016, according to a new report from NanoMarkets.

Key insights:

* NanoMarkets believes that new battery technologies will be needed to meet the demanding storage requirements of the Smart Grid and that lead carbon, Sodium Sulfur (NaS) and flow battery technology will take a growing share of Smart Grid storage applications.

Flow batteries show especial promise and NanoMarkets believes that revenues from these type of batteries will reach $510 million by 2016. Another technology that should be fully commercialized in a five-to-eight-year timeframe is the ultrabattery which is an advanced lead acid battery that integrates supercapacitor technology.

* NanoMarkets' report says that initially current UPS strategies for retail electrical supply will be extended for use in peak shaving applications. The second major growth area for Smart Grid storage will emerge to provide grid stability for intermittent generating sources -- primarily on-grid wind and solar.

Battery-based grid storage will also be a key requirement for microgrids for regions that currently lack reliable grid infrastructure as well as for military support applications.

* Current national and international goals for alternative energy deployment will not be met without extensive new storage capability installed in national grids. Without such installation the required grid stability and peaking shifting capability needed to meet these goals cannot be attained.

* NanoMarkets believes that supercapacitor demand from the Smart Grid will reach $1.1 billion by 2016. Because of their fast discharge rate and low maintenance, the demand for supercapacitors will find their most extensive in frequency regulation applications.

The other area where significant growth for supercapacitors is expected is in regenerative braking for grid-connected light rail systems.

SunWize completes largest PV installation in Texas

KINGSTON, USA: SunWize Commercial Power Systems, the commercial installation division of SunWize Technologies Inc., recently completed a 337 kW DC solar electric system for the Department of Veterans Affairs (VA) at its Dallas Medical Center.

The installation is the largest photovoltaic (PV) installation in Texas and the second major project completed by SunWize for the VA in its effort to utilize renewable energy and improve energy efficiency.

The Dallas VA Medical Center system is expected to save the hospital over $62,000 in annual electricity costs. It consists of 1,728 SANYO HITTM PV modules and is one of the highest efficiency PV systems available.

“I appreciate the diligent project and construction management of SunWize. Nobody has worked as hard as SunWize to address my requirements,” states Rick Hart, Energy Manager at the Medical Center. “Moreover, I am glad for the careful, conservative approach to structural engineering that SunWize has taken. In the May 2nd ‘microburst’ storm that destroyed the Dallas Cowboy training facility and uprooted trees and light poles here at the hospital, our rooftop PV system stayed put.”

Federal agencies are under executive order to increase energy efficiency and reduce greenhouse gas emissions by 3 percent per year or 30 percent by the end of 2015. In response, the VA developed a comprehensive department-wide energy management plan and surveyed its major facilities for their renewable energy potential.

Its evaluation identified the Dallas and Loma Linda, Calif. facilities as the top candidates for PV systems. SunWize Commercial Power Systems was awarded and successfully completed both contracts.

“We are pleased and honored to once again work with the VA in its renewable energy push. The Medical Center in Dallas is the second of what we anticipate will be many projects for the Department of Veterans Affairs. Completing the largest PV system in Texas again demonstrates SunWize has the unique ability and resources to successfully complete solar electric systems across the country,” comments David Kaltsas, SunWize Executive Vice President.

Korea's evolving solar PV policies and their impact

DUBLIN, IRELAND: Research and Markets has announced the addition of the "Korea's Evolving Solar Photovoltaic Policies and Their Impact on the Country's Market and Industry" report to its offering.

Korea restructured its industry following the 1998 Asian financial crisis and its ICT industry has developed strongly since that time. The Korean government regards the current economic downturn as an opportunity to adjust its economy from an export- and technology-driven economy to green-driven economy.

The government envisages the solar photovoltaic industry as its next strategic industry, following the semiconductor and display industries. Despite of its efforts in 2008 to expand its support for the solar photovoltaic industry, the Korean government has begun running out of funds in 2009.

This report analyzes Korean government policies for the solar photovoltaic market and examines future trends in solar photovoltaic market demand.

List of topics
* Energy and green plans of Korea's solar photovoltaic industry, including the role of the Korean government in building the industry.
* The Korean government's solar photovoltaic programs for the industry, including the one million green home program, the feed-in tariff program, and the financial subsidy program.
* The Korean 100,000 green home program roadmap, 2001-2012.
* Companies and organizations mentioned in the report include: Hyundai, LG, Samsung.

2008 was record year for solar PV sales

DUBLIN, IRELAND: Research and Markets has announced the addition of the "Solar PV Report Ed 6 2009" report to its offering.

2008 was a record year for solar PV sales, with 5.7 GW of new capacity added. Spain shot into top place, with 2.7 GW added, the largest volume of annual sales achieved by any country ever, followed by Germany with 1.5 GW. Between them they accounted for three quarters of world sales.

However, Spain's pre-eminence was short-lived and in the wake of the financial crisis the Spanish government announced a cap on the feed-in subsidy for solar PV installations at 500 MW in 2009.

This will not only put a brake on Spanish sales but will reduce the global solar PV total in 2009, we believe by at least 50 percent. The Spanish renewable associations are looking ahead at least two years before recovery starts in Spain.

The slowdown in solar PV sales has had some good outcomes however. The shortage of silicon, which has been restraining development, is no longer a major issue and by the time recovery starts new supply should be in place.

Secondly, prices of solar modules are coming down. Thirdly, small companies in the supply chain are merging and being taken over, consolidating the industry.

The report, monitors the progress of two new players in the international market, China and Korea. Chinese solar PV companies have developed very fast and a number conducted IPOs in China and other countries in 2007 and 2008.

A mushrooming production capacity for solar cells and modules has been accompanied by growing production and re-cycling of silicon. This is affected by the global slow-down but the Chinese industry is already well placed for the future. Domestic demand in China has not kept pace and it is an export oriented industry to date.

With the cut-back in Spain, Germany, followed by Japan and the USA still remains the global leader, but new countries are entering the market and the industry is spreading beyond its historical areas.

Magma launches YieldManager Solar

BANGALORE, INDIA: Magma Design Automation Inc. today announced YieldManager Solar, a yield enhancement software system customized for solar fabs that improves energy conversion efficiency, increases yield and reduces the manufacturing costs of solar cells.

Based on software proven in the semiconductor industry, YieldManager Solar provides fast, accurate analysis and correlation of all metrology, inspection and performance data used throughout the solar cell manufacturing process.

With this information, solar fab test and production engineers can quickly identify and correct root causes of solar energy conversion efficiency and yield degradation caused by subtle fab processing fluctuations or instability –- saving time, maximizing equipment utilization, increasing yield and reducing costs.

“Inefficient energy conversion and the need to produce a very large number of wafers contribute to the high cost of solar-converted electricity and slow the growth of the alternative energy market,” said Ankush Oberai, vice president of Magma's Fab Analysis Business Unit.

“With YieldManager Solar, fabs can carefully monitor the entire solar cell manufacturing process over time and create highly customized reports that enable them to improve the energy conversion efficiency, reduce the manufacturing costs and increase the yield of silicon wafer-based solar cells.”

YieldManager Solar: Improving yield and efficiency of PV cells
As with semiconductors, solar cells are produced using a variety of manufacturing tools and equipment, each of which presents data in a unique format. With such a complex process and varying data, identifying the root cause of problems requires a holistic approach. YieldManager Solar is the only analysis tool that can collect and organize current and historic manufacturing data from all the process equipment.

It allows fab engineers to easily filter data by lot, ingot, substrate, wafer and other parameters and to generate customized reports and dashboards. With this comprehensive analysis system, problems can be identified quickly and easily.

For example, a non-uniform doping level on a process step could cause a drop in sheet resistance that can reduce the energy conversion efficiency of a solar cell. By monitoring, reporting and sending alarms about these types of out-of-control conditions, YieldManager Solar helps engineers identify and correct problems quickly.

Additional analysis can then be performed, as needed. YieldManager Solar is available now.

2009 report on 1 MW solar PV government projects

DUBLIN, IRELAND: Research and Markets has announced the addition of the "The 2009 Report on 1 MW Solar Photovoltaic Government Projects: World Market Segmentation by City" report to its offering.

This study covers the world outlook for 1 MW solar photovoltaic government projects across more than 2000 cities. For the year reported, estimates are given for the latent demand, or potential industry earnings (P.I.E.), for the city in question (in millions of US dollars), the percent share the city is of the region and of the globe.

These comparative benchmarks allow the reader to quickly gauge a city vis-à-vis others. Using econometric models which project fundamental economic dynamics within each country and across countries, latent demand estimates are created. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level.

The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.

What is Latent Demand and the P.I.E.? The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms.

It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if a market is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The "market" is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).

The latent demand for 1 MW solar photovoltaic government projects is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be lower either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels).

Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a city market.

Another reason why sales do not equate to latent demand is exchange rates. In this report, all figures assume the long-run efficiency of currency markets. Figures, therefore, equate values based on purchasing power parities across countries. Short-run distortions in the value of the dollar, therefore, do not figure into the estimates.

Purchasing power parity estimates of country income were collected from official sources, and extrapolated using standard econometric models. The report uses the dollar as the currency of comparison, but not as a measure of transaction volume.

Solar PV capex cuts will ease capacity growth in time for recovery

USA: Much like the boom-to-bust IC industry in recent decades, manufacturers of solar-energy cells and thin films are having a difficult time matching investments for new production capacity with the recessionary and recovery throes of the fledgling photovoltaic (PV)-device market, based on the analysis in a new 2009 report from IC Insights: Solar Energy: Growth Opportunities for the Semiconductor Industry.

The mismatch of photovoltaic capacity expansions and slumping market demand is underscored by the expected 32 percent increase in global PV production capacity in 2009 despite a forecasted 22 percent decline in solar system installations this year, according to the new report.Source: IC Insights

Although PV-device manufacturers made known their intentions in late 2008 to trim capital spending, many of the top suppliers have been unable to abruptly halt those expenditures in 2009. Consequently, global PV solar-device production capacity is expected to rise 32 percent in 2009 to a total output capable of generating 11.5 gigawatts of electricity.

This follows a 69 percent increase in installed photovoltaic cell and thin-film (TF) plant capacity in 2008 to 8.7GW, says IC Insights' new report. Cuts in capital spending will slow capacity expansion to just 15 percent in 2010, but that will come when the solar market begins to recover with a 37 percent growth in system installations next year, based on the repor's 2009-2013 forecast.

In 2010, IC Insights believes that capex spending levels for PV cell and TF module capacity will fall further than the 23 percent decline forecast for 2009 as producers confront rising inventory stockpiles and plummeting capacity utilization.

The report shows global solar PV cell and TF capital expenditures falling 40 percent in 2010 to about $680 million from $1.13 billion in 2009, excluding capex on assembly of cell-based modules and panels. However, solar PV capital expenditures will begin a steady recovery in 2011, rising 13 percent that year to $772 million but surging 74 percent in 2012 to $1.34 billion, based on IC Insights' five-year forecast (see Fig. 1).

With PV manufacturers unable to abruptly curb additions to production plants, capacity utilization rates for solar devices are forecast to plummet from 83 percent in 2008 to 54 percent in 2009 and to 52 percent in 2010.

However, IC Insights is forecasting a steady rise in plant capacity utilization to 63 percent in 2011 and to 82 percent in 2013. The efforts to achieve high levels of capacity utilization will stretch out to the end of the forecast period and will be an important contributor to the industry's reduction of the cost per watt of solar systems.

The new 2009 solar report estimates that plants in mainland China and Taiwan accounted for 39 percent of total global PV device production in 2008, with European production at 28 percent of the worldwide total and Japan 16 percent. US producers captured only 10 percent of the total in 2008, based on IC Insights' data.

Bright prospects for solar industry at Intersolar 2009

MUNICH, GERMANY: The world’s largest trade show for solar technology, Intersolar, has been an enormous success. The organizers were able to achieve their objectives, with approximately 60,000 visitors from over 150 nations visiting the show. In addition, over 2,000 participants attended the 22 conference events in Munich.

"Never before has Intersolar had more exhibitors, more visitors, more media representatives and more different nations represented. Given the difficult economic situation, we are especially pleased that Intersolar 2009 has turned out so successful. At the last provisional count here in Munich, we registered visitors from over 150 nations. The response has been truly overwhelming," says Markus Elsässer, Managing Director of Solar Promotion GmbH, one of the two organizers of Intersolar.

Klaus W. Seilnacht, CEO of Freiburg Wirtschaft Touristik und Messe GmbH & Co. KG, and co-organizer of Intersolar, is also more than satisfied with the show: "Following on from the extremely successful opening in Munich in 2008, we are pleased to see such a significant year-on-year increase in levels of interest among exhibitors and visitors. This growth in international attendance, size, number of exhibitors and visitors gives us plenty of cause for optimism."

Exhibitors and visitors highly satisfied
In view of the approximately 60,000 visitors, the large number of innovations exhibited at the show and the 37 percent increase in exhibition space, visitors and exhibitors alike were more than satisfied with Intersolar 2009.

"We have exhibited at Intersolar right from the very beginning. We have followed the show from Pforzheim to Freiburg and now to Munich. The exhibition halls are fantastic, and the show is extremely well organized. We are very pleased with the large numbers of high-caliber visitors the show is able to attract, including a great many foreign visitors, who are very important to us," says Rudolf Pfeil, CEO of RESOL – Elektronische Regelungen GmbH.

"I find Intersolar a very fascinating solar show. It is the biggest solar show in the world and you can just feel the energy here," says Connie J. Duncan, Senior Manager of Applied Materials Inc.

"We are very pleased with the way the show has gone and the fact that visitors showed a great deal of interest in our booth, and especially our new exhibits. Intersolar is without doubt the world's leading trade show and, as such, is a must for anybody who wants to launch a new product on the market," says Christoph Panhuber, Head of the Solar Electronics Division of Fronius International GmbH.

The partners of the trade show are satisfied with the event as well. Heinz Kundert, President of the SEMI Europe PV Group, has appreciated the upbeat atmosphere at the show over the last few days: "You can feel that the interest in PV is extremely high and exhibitors are pleased."

The next Intersolar will take place in Munich from June 9 to 11, 2010.

First Solar announces multi-year supply contract with Pfalzsolar

MUNICH, GERMANY: First Solar Inc. and Pfalzsolar, GmbH, a fast-growing German solar project developer owned by Pfalzwerke AG, a public utility in the state of Rhineland-Palatinate, recently announced the signing of a new long-term supply agreement.

The latest in a series of utility-linked agreements initially foresees delivery of First Solar’s photovoltaic modules to Pfalzsolar, beginning immediately, for use in rooftop and free field solar projects in Germany.

“This agreement reinforces First Solar’s relationships with utility-owned project developers and demonstrates that local utilities increasingly see photovoltaic power as a necessary component of their future electricity generation portfolio,” said Stephan Hansen, managing director of First Solar GmbH.

“We are pleased to have gained Pfalzsolar as an additional customer in a key market at a key period for the evolution of solar electricity in Europe,” added John Carrington, executive vice president, global marketing & business development.

Ali Boukhalfa, managing director of Pfalzsolar GmbH, said the company was delighted to have reached a long-term supply agreement with First Solar. “The agreement gives us the guarantee of being able to offer high-performance modules at competitive prices, thereby helping us fulfill our ambitious growth targets,” he said.

Solar PV forecast -- industry will bounce back with adjusted priorities

SCOTTSDALE, USA: IC Insights recently released a new report, its first to examine and analyze the solar photovoltaic industry from the perspective of semiconductor industry participants.

Solar Energy: Growth Opportunities for the Semiconductor Industry starts with the market for high-purity silicon shared with the chip industry, a market where the rapidly changing balance between supply and demand is contributing to a rethinking of priorities in the solar PV sector.

For some time, PV device makers have concentrated on reducing the amount of silicon required per watt of energy output, in part because silicon represented a large portion of the cost of a solar cell, but also because the supply of solar-grade silicon was limited. With new polysilicon plants coming on line, the supply constraint has evaporated and the cost of silicon is coming down significantly.

At the same time, demand for solar installations has plummeted due to the recession and credit crunch, as well as government incentive cutbacks in Europe. Solar panel inventories have built up, and competition has intensified for the reduced available business, driving prices down across the solar PV supply chain.

IC Insights forecasts that on a megawatt basis, global installations will drop 22 percent this year. Average selling prices for solar panels is expected to drop 28 percent.

IC Insights expects demand for solar installations to come charging back in 2010 as new government incentives in the US, Europe, and China gain traction. Installations are forecast to rise 37 percent to 6.7 gigawatts, with continued growth achieving a CAGR of 25 percent over the 2008-2013 forecast period.

The price drop of 2009, while not forecast to repeat in 2010-2013, will make solar systems more attractive in more markets even as government incentives supporting installations start to taper off starting four or five years down the road, IC Insights believes.

With the cost of silicon dropping, R&D investments in solar device design and manufacturing technology will back off the years-long push to minimize silicon consumption and center on new ways to reduce costs and boost device efficiency. For example, several solar cell makers are coming out with new back-contact cell designs, as described in the report.

Solar Energy: Growth Opportunities for the Semiconductor Industry provides a detailed forecast of the solar cell and panel market, including thin-film panels, as well as a system-level forecast and a country-by-country demand forecast.

The forecast includes a unique look at the semiconductor content of solar systems, a small but very fast-growing segment, and predicts global capital spending for solar cell manufacturers over five years. The report also reviews the numerous technology approaches challenging mainstream silicon wafer PV cells.

Solar Energy: Growth Opportunities for the Semiconductor Industry comes with a full-color three-ring binder for easy off-the shelf reference and an electronic copy on CD-ROM that includes image files of the charts and tables. The report is available for purchase at $2,975 for individual users and $5,880 for multi-user corporate situations.

New record for Oerlikon Solar’s Micromorph technology

INTERSOLAR MUNICH, GERMANY: Oerlikon Solar, the world's leading supplier of thin film silicon photovoltaic (PV) production equipment, today announced that it has achieved a new record efficiency level for commercial thin film silicon PV modules.

Recent test results from Oerlikon Solar's pilot production line in Switzerland show that full-size Micromorph modules (1.4 m2) have 151 Watts initial power, or 11 percent initial power conversion efficiency. This result sets a new industry record for production thin film silicon modules.

Oerlikon Solar was able to consistently reproduce modules with similar record results, demonstrating a stable and scalable process. "This achievement clearly demonstrates Oerlikon Solar's technical leadership and is another key milestone on our path to grid parity", stated Jeannine Sargent, CEO of Oerlikon Solar.

Oerlikon Solar has previously announced an ambitious production cost target of USD 0.70 per Watt peak and is on track to achieve this target by end of 2010. Increased module efficiency and power are key contributors to this goal.

The excellent performance of the record modules demonstrates the advantage of Oerlikon Solar's end to end manufacturing solution. Oerlikon Solar's advanced PV technologies and process integration know-how result in an optimized manufacturing solution that is able to achieve higher conversion efficiencies and lower cost of ownership.

An example of this technology optimization is Oerlikon Solar's integration of a proprietary process to deposit high-quality transparent conducting oxide (TCO) on the front and back surfaces of the active thin film silicon junction. This TCO is engineered to optimize the performance of the Micromorph technology by improving light transmittance and light scattering, resulting in maximum efficiency and electricity output.

Success through best in class technology
Oerlikon Solar is the world leader in silicon-based thin film solar technology and end-to-end manufacturing solutions with 10 established customers in operation or ramp up worldwide representing 600 MWp of yearly production capacity, enough to power 480,000 households. This record panel is the latest result of this ongoing development program and reinforces Oerlikon Solar's role as a technology and market leader.

Oerlikon Solar's end-to-end solution as key enabler
"We successfully implemented several modifications of key processes of our end-to-end production line, leading to the increase in initial power output and efficiency", emphasized Dr. Juerg Henz, Head of Thin Film Engineering and Operations at Oerlikon Solar. "We are confident that our ability to repeatedly achieve record results can be transferred into mass production soon."

Low cost, high performance technology
Oerlikon Solar's IEC certified Micromorph technology significantly boosts solar cell efficiency by adding a second microcrystalline absorber to the amorphous silicon (a-Si) layer. This layer converts the energy of the red and near-infrared spectrum, facilitating efficiency increases of up to 50 percent.

The Micromorph technology also bolsters overall module power, enabling a growing number of PV module manufacturers around the globe to produce cost-effective highperformance thin film silicon solar modules.

President Obama's remarks on renewable energy -- We come for the sun!

Here's the release on US President Barack Obama's remarks on alterative energy. It is also posted on the White House web site.


NEVADA, USA: Thank you so much. Everybody please have a seat. Thank you so much.

I've got some special acknowledgments that I have to make. First of all, we've got some members of the congressional delegation Nevada who are doing outstanding jobs not only for Nevada but also for the men and women in uniform. So please give a warm welcome to Congresswoman Shelley Berkley. Congresswoman Dina Titus. And we're in his district, he couldn't be here, but Congressman Dean Heller, please give him a big round of applause.

I also want to thank the State Controller, Kim Wallin, for her great work. The Nevada Secretary of State, Ross Miller. Nevada State Treasurer, Kate Marshall. I want to thank the Brigadier General, Stanley Kresge, for the wonderful, outstanding work that he does, as well as Colonel Dave Belote, who just gave me an outstanding tour of the solar panel facility out here.

But mainly I want to thank all of you, the men and women in uniform, for your service to our country. We're grateful to you. Thank you.

I just spoke to a handful of your commanders here. I know some are about to be deployed to Iraq and Afghanistan, many have just come back. The fact that you serve each and every day to keep us safe is something that every American is grateful for. And so if I don't do anything else as your Commander-in-Chief, I'm going to make sure that we're there for you just as you've been there for us. So thank you very much.

Finally, let me acknowledge Senator Reid, not just for the generous introduction, not only because he's been a great friend, not only because he's been an outstanding Majority Leader, but also because of everything that he's done for the people of Nevada and for the armed services. He is somebody who has never forgotten his roots. After all these years, he still brings the voices and values of Searchlight, Nevada to the nation's most important debates in Washington, D.C. -- and we are better off because he does. So please give Harry Reid a big round of applause.

You know, it's always a pleasure to get out of Washington a little bit. Washington is okay, but it's nice taking some time to talk to Americans of every walk of life outside of the nation's capital. And there's nothing like a quick trip to Vegas in the middle of the week. Like millions of other Americans, we come to this beautiful city for the sights and for the sounds -- and today, we come for the sun.

Because right now, we're standing near the largest solar electric plant of its kind in the entire Western Hemisphere -- the entire Western Hemisphere. More than 72,000 solar panels built on part of an old landfill provide 25 percent of the electricity for the 12,000 people who live and work here at Nellis. That's the equivalent of powering about 13,200 homes during the day.

It's a project that took about half a year to complete, created 200 jobs, and will save the United States Air Force, which is the largest consumer of energy in the federal government, nearly $1 million -- $1 million a year. It will also reduce harmful carbon pollution by 24,000 tons per year, which is the equivalent of removing 4,000 cars from our roads. Most importantly, this base serves as a shining example of what's possible when we harness the power of clean, renewable energy to build a new, firmer foundation for economic growth.

Now, that's the kind of foundation we're trying to build all across America. One hundred days ago, in the midst of the worst economic crisis in half a century, we passed the most sweeping economic recovery act in history -- a plan designed to save jobs, create new ones, and put money in people's pockets. It's a plan designed not only to revive the economy in the short term, but to rebuild the economy over the long term. It's a plan that we passed thanks to the tireless efforts of Harry Reid and Congresswoman Berkley and Congresswoman Titus and all the other outstanding public servants in Washington.

But if it hadn't been for Harry Reid -- because the Senate is tough -- moving this Recovery Act through Congress with the skill and tenacity and urgency of somebody who knows the struggles that millions of people are going through, we would have not gotten it done. So I am eternally grateful to him and the other members of the congressional delegation for helping to pass this plan.

And 100 days later, we're already seeing results. And today, we're releasing a report that details the progress that we've made in every region of the country.

In these last few months, the American Recovery and Reinvestment Act has saved or created nearly 150,000 jobs -- jobs building solar panels and wind turbines, making homes and buildings more energy efficient. They're the jobs of teachers and police officers and nurses who have not been laid off as a consequence of this Recovery Act. They're the jobs fixing roads and bridges, jobs at start-ups and small businesses, and jobs that will put thousands of young Americans to work this summer.

Also in the Recovery Act, by the way, is all sorts of construction taking place on bases just like Nellis to support military families, and I know that that is something that Michelle Obama has taken a lot of time looking into; that's something that I'm spending a lot of time thinking about. We want to make sure that our bases and our facilities are the best in the world for our best troops.

Ninety-five percent of all working families saw their take-home pay increase because of the tax cut that we provided in the Recovery Act. Fifty-four million seniors received $250 extra in their Social Security checks. Laid-off workers have received greater unemployment benefits and paid less for their health care.

For the thousands of families whose homes have been made more energy efficient, it's also saved them about $350 on their energy bills. Other Americans saved thousands by taking advantage of the tax credits the Recovery Act has provided for the purchase of a new home, or a new fuel-efficient car, or energy-efficient cooling and heating systems, windows, and insulation. And all of this has helped to fuel demand that is helping businesses put more Americans back to work.

But this is just the beginning. There are still too many Americans out of work, and too many who still worry that their job may be next. There are still too many families struggling to pay the bills, and too many businesses struggling to keep their doors open. And that's why we will continue to implement the Recovery Act as quickly and effectively as possible over the next two years.

We're just at the start of this Recovery Act. We are going to keep on going through this year and into next year, because we are going to make sure that not only are we putting people back to work, but we're laying the foundation for a better economy. And that's why my administration will continue an unrelenting, day-by-day effort to fight for economic recovery on all fronts.

Now, I just want to emphasize, even as we clear away some of the wreckage and debris of this extraordinary recession, I've also said that our next task is making sure that this doesn't happen again. We can't return to the same bubble-and-bust economy, borrow-and-spend economy based on maxed-out credit cards and overleveraged banks and financial profits that were only real on paper -- see, that young lady agrees with me. We have to lay a new foundation for prosperity -- a foundation constructed on the pillars that will grow our economy and help America compete in the 21st century.

And a renewable energy revolution is one of those pillars. We know the cost of our oil addiction all too well. It's the cost measured by the billions of dollars we send to nations with unstable or unfriendly regimes. We help to fund both sides of the war on terror because of our addiction to oil. It's the cost of our vulnerability to the volatility of the oil markets. It's the cost we feel in shifting weather patterns that are already causing unprecedented droughts and more intense storms. It's a cost we can't bear any longer.

Today, projects like the one at Nellis are still the exception to the rule, unfortunately. America produces less than 3 percent of our electricity through renewable sources of energy like wind and solar -- less than 3 percent. In contrast, Denmark produces 20 percent of their electricity through wind. We pioneered solar technology, but we've fallen behind countries like Germany and Japan in generating it, even though they get less sun than we do. They certainly get less sun than Nevada.

So we've got a choice. We can remain the world's leading importer of oil, sending our money and our wealth away, or we can become the world's leading exporter of clean energy. We can hand over the jobs of the future to our competitors, or we can confront what they've already recognized as the great opportunity of our time: The nation that leads the world in creating new sources of clean energy will be the nation that leads the 21st-century global economy. And that's the nation I want America to be and I know that's the nation you want America to be.

Already, we've made more progress on this front in the last four months than we have in the last three decades. Last week, I brought auto executives, labor unions, environmental groups, Democrats, and Republicans together to set the toughest-ever national fuel-efficiency standard for our cars and trucks -- a standard that will save 1.8 billion barrels of oil over the lifetime of the vehicles sold in the next five years.

In Congress, leaders like Harry Reid are also working to pass a historic energy plan that will help end our dependence on foreign oil while preventing the worst consequences of climate change. It's a system -- it's a plan that will create a system of clean energy incentives that will create good, American jobs and crack down on polluters who pollute the air we breathe and the water we drink.

Finally, by the end of the next two years, the Recovery Act will have enabled a doubling of our nation's capacity to generate renewable energy by investing in projects just like the one on this Air Force base. And today, I'm announcing the availability of funding for two Recovery Act programs that will help us reach that goal.

The first is a solar energy technologies program that will help replicate the success of the Nellis project in cities and states across America -- because in this case, what happens in Vegas should not stay in Vegas. We want everybody to know what we're doing here in Vegas. We'll invest in the development and deployment of solar technology wherever it can thrive and we'll find the best ways to integrate solar power into our electric grid.

The second program I'm announcing will help develop the use of geothermal energy in America. As many of you in Nevada know, geothermal energy is literally defined as "heat from the earth." This heat can then be harnessed as a clean, affordable, and reliable source of energy.

And already, Nevada has 17 industrial scale geothermal plants, and your capacity to generate this type of power is expected to increase in the next few years. The program we're announcing will help accelerate this process -- here, and across America. So this is something that we expect will -- (applause.) -- this will create more jobs, it will create more businesses, and more affordable electricity for the American people.

Now, from where we stand today, the road to economic recovery is still long. We've got a lot of work to do. There are a lot of folks who are still hurting out there. And the road to a new, clean energy economy is even longer. We're not going to do it overnight. But after four months of this administration and 100 days of this Recovery Act, we have carved out a path toward progress. It's a path that begins in places just like this Air Force base, where ordinary citizens tap into their sense of innovation and ingenuity to reinvent the world around them.

This base has been known as "The Home of the Fighter Pilot." Now it's the home of the largest solar energy installation of its kind in the Western Hemisphere. And by the way, the two concepts are connected because it is good for our national security if we've got more control over our own energy use.

And that's the story that will be told all across America, in cities and towns, where a shuttered factory reopens to build wind turbines; where a hospital treats patients with new technology and pulls up their history with new electronic records; where a young entrepreneur with a nest egg and a good idea starts a business and creates more jobs.

That's how we move America forward. This is how we've always moved forward. It happens slowly, in fits and starts, but it always happens surely when we are dedicated to bringing about change. It happens not by chance or by luck, but because the American people keep pushing ahead -- persevering through hardship, growing through challenge, building something firmer and stronger in place of what was.

That's the work we've begun in these last few months, and with your help, this is the work we will continue to do in the days and months ahead.

For all of you who are serving in our armed forces, we want to make sure that our civilians are mobilizing and working on behalf of this country just as ably as you are. We salute you, we thank you. Thank you, everybody. God bless you, God bless the United States of America. Thank you.