© Copyright 2013, First Solar, Inc. © Copyright 2013, First Solar, Inc.

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TAKING ENERGY FORWARD

enabling a world powered by reliable and affordable solar electricity.

First Solar Overview

PV – a Solution to Contemporary Energy Problems

The Role of Utility-Scale PV

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First Solar at a Glance

Driving innovation across entire value chain and plant solution Cost competitive with conventional energy sources today Partner of choice for leading utilities and global power buyers Over 8 GW installed worldwide and over 3GW contracted pipeline

Founded in 1999 and publicly traded on Nasdaq (FSLR) Strongest financial stability & bankability in the industry

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World record 18.7% cell

History of Leadership Across Entire Solar Value Chain

Financed ~9B solar plants Acquired EPC & project DEV

1999 … 2005_…20072008200920102011

State-of-the-art Operations Center Proprietary plant controller

Industry leading tracker technology World’s largest PV plants

Integrating into the global energy mix 1^st global module recycling

program

1^st to break $1/watt cost barrier 1^st to produce 1GW in single year

1999 2012 2013

World record 16.1% module

Acquired disruptive x-Si technology

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Global Offices & Manufacturing

Additional

colored pins for you to mark custom locations such as projects or your home office.

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Site Agua Caliente, AZ, USA

System Size 290MW

Owners NRG Energy &

MidAmerican Solar

Site Greenough River, WA, Australia

Owners

Verve Energy &

GE Energy Financial Services

Site Templin, Brandenburg

Owner Commerzreal

Developer Belectric

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Project Development & Execution

• Sustainable Markets

• Southern Europe, Turkey

• Self Consumption solutions

Partnership & Acquisition

• Markets with reliable RE regulation

• Joint Project Development

• Pipeline Acquisition

Modules, AC Power Blocks, Services

^• Technology Sales

• Project Business only

First Solar in Europe

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First Solar Overview

PV - a Solution to Contemporary Energy Problems The Role of Utility-Scale PV

TAKING ENERGY FORWARD

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Europe & Germany: Energy Policy Goals

./. 40% (2020) ./. 85% (2050)

vs. 1990

./. 20% (2020) ./. 50% (2050)

35-40% (2020) 80% (2050)

18% (2020)

60% (2050)

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Share of RE on Gross Power Consumption in GE and GE Government Targets

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Germany: „Energiewende“

• Elimination (Phasing-Out) of Nuclear power production in 2022

• Municipalities contribute to reach CO₂reduction targets and renewable energy 2020 targets

As a result:

• Renewable Energy will form the backbone of energy generation in Germany

• As most Renewable Energy Sources are fluctuating, grid integration, storage and backup solutions are necessary

• Grid expansion program (for Off-Shore-Wind) and local transmission necessary, but distributed local energy production can reduce expansion needs

• Energy Research Funds should promote Storage, Grid Technologies and Integration of RE in market and grid

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Germany: „Energiewende“

How can PV power plants benefit the Energiewende?

• By enabling decentralization of power generation close to existing clients whereby maintaining zero CO₂ emissions

• By empowering municipal utilities to „green“ and broaden their power generation portfolio

• By providing competitive power generation on a fixed price for 25 years

• By fitting perfectly into power generating portfolios, in particular with wind and gas

• By being suitable for integration in local grids and provide grid stabilization mechanisms

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• PV has high upfront capital costs with low ongoing operating costs

• Cost of Capital significantly impacts total cost of ownership

• De-risking the project cash flow, lowers the cost of capital

available to a project

Impact of Project Finance on PV Electricity Cost

Cost of Financing is a Key Driver of LCOE

Module

25%

OpEx

8%

Financing

36%

BoS

26%

Development

5%

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First Solar Overview

PV - a Solution to Contemporary Energy Problems The Role of Utility-Scale PV

TAKING ENERGY FORWARD

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Market Segments

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$0,00 $0,10 $0,20 $0,30 $0,40 $0,50 $0,60

Coal Nuclear

U.S. (NG) Japan (LNG) U.S. (NG)

Gas Peaking

EU (NG) Japan (LNG) India

Diesel

Australia EU

First Solar

Cost Competitive with Conventional Energy Sources Today

Sources: Coal and Nuclear: Bloomberg New Energy Finance LCOE Update: Q2 2013; Gas Combined Cycle, Gas Peaking, and Diesel: Lazard LCOE Sensitivity Analysis June 2013; First Solar: Internal data.

(a) Does not include cost of carbon capture. (b) NG = natural gas. LNG = liquefied natural gas. Data assumes natural gas prices of $10 in Northern Europe and $18 in Japan (all in US$ per MMBTU). (c) Assumes diesel prices of $3.00 for India,

$4.30 for Australia, and $7.00 for Northern Europe (all in US$ per gallon). Diesel assumes a high end capacity factor of 30% representing intermittent utilization and low end capacity factor of 95% representing base load utilization, O&M cost of

$15 per KW/year, heat rate of 10,000 BTU/KWh and total capital costs of $500-$800 per KW of capacity.

a b b c

Gas Combined Cycle

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Applications for the German Market

Self-Consumption Solutions Contracting

Adding solar PV to local/regional power generation protfolios

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PPAs Seek to Balance Utility and Investor Interests

Utility Off-Taker Interests

Successful procurement of reliable, predictable power

Protect ratepayers

Keep rates low

Diversify generation portfolio

 Meet load growth

Meet renewable energy targets

Investor Interests

 Financeable project with predictable, long-term revenues

 Terms acceptable to lenders and investors

 Secure revenue stream to service debt

 Avoid risks best controlled by utility

 Limit lender downside

 Creditworthy off-taker

 Sufficient revenue to service debt

 Stable revenue stream

 Term of PPA covers term of loan

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Securing the PV Project Cash Flow

Feed-in-Tariff Power

Regulator

Land Lease Debt Service

Dividends O & M

Sovereign Risk Regulatory Risk

Feed-in-Tariff Power

Utility/IPP

Land Lease Debt Service

Dividends O & M

Energy Market Risk Corporate Risk

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Goal of Research and Methodical Approach

Role of utility solar power plants in Germany

Cost Analysis Integration to the Energy System

 Comparison of fossile and renewable power production considering the 40- year-lifecycle

 Regional consideration of LCOE

 Competitiveness of solar power plants in an European comparison

 Possible allocation of technological system services (grid stability)

 Analysis of the energy generation

profile of solar power plants

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RES LCOE in Germany (excluding grid costs) on 20-year-timeframe

Region 1

Region 2

Region 3

Region 4

Source: Prognos AG

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Average LCOE of the Single Energy Generation Sources According to Regions*

– 40 Year Life-Cycle

Region 1

Region 2

Region 3

Region 4

Source: Prognos AG

* excluding grid costs

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Solar Power Production is Predictable

Planned and Realized Power Production 2012

Source: Fraunhofer ISE

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Utility-Scale PV Grid Integration and Plant Control Systems

• Actively stabilize the electricity grid and enhance its reliability

• Manage variability with existing infrastructure

• Offer significant value to plant owners and grid operators ADVANCED PLANT FEATURES



Regulate voltage and power factor



Control active and reactive power



Control ramp rates



Regulate frequency



Fault ride through



Curtailment impact mitigation

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Utility-Sale PV is a Competitive Renewable Energy Source in Germany

 Utility-sale PV is a competitive RES in Germany

 A higher share of utility-scale PV in energy generation portfolio contributes to cost reduction of RES production and of the overall energy-system-transition

Utility-scale PV power plants offer long-term fixed power production cost; the hedging value of PV power generation has been calculated between 0.015 and 0.031 €/kWh (Source: LBBW, EPIA, 2009)

 Utility-scale PV should be seen as independent RES and have their own capacity expansion target

 Systemic aspects/advantages of RES need to be considered

However:

 Starting end of 2013, building and operating solar power plants is uneconomic under current political framework conditions

 The feed-in-tariff cap at 10 MW per plant and the restricted site selection limit the exploitation of the cost reducing potential.

 The 52GW PV cap should be reviewed to consider the advantages of utility-scale PV

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Europe Team – BDEurope@firstsolar.com

Sales & Business Development

Order Management & Customer Service Project Finance

Marketing Communications Office Management & Sales Support

Stefan Degener stefan.degener@firstsolar.com Andreas Wade andreas.wade@firstsolar.com Jörg Veldmann jveldmann@firstsolar.com Luca Rigoni lrigoni@firstsolar.com

Sonja Altesellmeier saltesellmeier@firstsolar.com Sarah Junior sjunior@firstsolar.com

Carina Würzberger cwuerzberger@firstsolar.com

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BACKUP

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Feed-in-tariffs for utility solar power plants show significant decrease

Threshold of 10cents /kwh was undercut in October 2013 9,2

8,6

8,1

7,6

7,1

6,6 6,2

5,8 5,4

5,1 4,7

4,4 4,2 11,8

11,0

10,4 9,9

8,8 8,5

8,2 8,0

7,8 7,5 7,3

7,1 6,9 6,7 9,7 9,6 9,4 9,3 9,2 9,0 8,9 8,8 8,6 8,5 8,4 8,2 8,2

Jan 13 Apr 13 Jul 13 Okt 13 Jan 14 Apr 14 Jul 14 Okt 14 Jan 15 Apr 15 Jul 15 Okt 15 Jan 16 Apr 16 Jul 16 Okt 16 Bei Zubau zwischen 5,5 und 6,5 GW Bei Zubau zwischen 4,5 und 5,5 GW Bei Zubau zwischen 3,5 und 4,5 GW Bei Zubau zwichen 2,5 und 3,5 GW Bei Zubau zwichen 2,0 und 2,5 GW Bei Zubau zwichen 1,5 und 2,0 GW

Entwicklung der nominalen EEG-Vergütungssätze für Freiflächen-Solarkraftwerke in Abhängigkeit vom gesamten PV-Marktvolumen in Cent/kWh

Development of nominal Feed-in-tariffs for solar power plants dependent on total PV market capacity (in cents/kwh)

Source: Prognos AG