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SunPower and PPL EnergyPlus Sign 10-Year Purchase Agreement for Renewable Energy Credits

TRENTON, N.J., Feb 13, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- SunPower Corp. (Nasdaq: SPWRA, SPWRB), a manufacturer of high-efficiency solar cells, solar panels and solar systems, announced today that PPL Energy Plus, the energy marketing and trading subsidiary of PPL Corporation, has signed an agreement to purchase New Jersey Solar Renewable Energy Certificates (NJ SRECs) from SunPower over the next ten years. The agreement is a result of changes to New Jersey's solar power incentive program, which has transitioned this year from reliance on state rebates or grants to a market-based system relying primarily on SRECs.

Under the agreement, PPL EnergyPlus will purchase SRECs issued as a result of solar power generated at SunPower installations in the state. SunPower expects to use revenue from the sale of the SREC's to finance the construction of approximately 2.5 megawatts of new solar power projects in New Jersey by 2010.

SRECs are tradable certificates representing all the renewable energy benefits generated from a solar electric system. Each time a solar system generates one megawatt hour of electricity, an SREC is issued that can then be sold or traded.

"Under New Jersey's new program, SREC prices and terms of sale are being determined by the free market," said Tom Leyden, managing director of SunPower's Trenton office. "PPL EnergyPlus is reducing solar renewable energy portfolio compliance costs and demonstrating good corporate citizenship by entering into this long-term agreement. Although the agreement will only address a small portion of new solar capacity to be built in New Jersey in the coming years, it is an indication that the SREC market can facilitate the construction of clean, reliable solar power projects. We expect that more of New Jersey's electricity suppliers will follow suit with similar long-term SREC purchase agreements."

"Combining the advantages of competitive markets with extended federal incentives for projects that support renewable energy and energy sustainability, that's a winning formula," said Gene Alessandrini, senior vice president-marketing for PPL EnergyPlus. "It's good business for PPL because it builds our renewable energy portfolio and advances the production of renewable, green energy."

New Jersey is one of the fastest growing solar energy markets in the U.S., with more than 3,500 solar power installations representing more than 69 megawatts of installed capacity. SunPower maintains an office in Trenton, and has completed solar power installations in New Jersey for customers such as Johnson & Johnson, Tiffany & Co., JCPenney and the New Jersey Department of Military and Veterans Affairs.

About SunPower Corp.

SunPower Corp. (Nasdaq: SPWRA, SPWRB) designs, manufactures and delivers high-performance solar electric systems worldwide for residential, commercial and utility-scale power plant customers. SunPower high-efficiency solar cells and solar panels generate up to 50 percent more power than conventional solar technologies and have a uniquely attractive, all-black appearance. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe, Australia and Asia. For more information, visit www.sunpowercorp.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not represent historical facts and may be based on underlying assumptions. The company uses words and phrases as such as "will" and "expect" to identify forward-looking statements in this press release, including forward-looking statements regarding: (a) PPL EnergyPlus' purchase of SRECs from SunPower; (b) SunPower's financing and constructing approximately 2.5 megawatts of new solar power projects in New Jersey by 2010; (c) more of New Jersey's electricity suppliers following suit with similar long-term SREC purchase agreements; and (d) New Jersey's solar energy market growing. Such forward-looking statements are based on information available to the company as of the date of this release and involve a number of risks and uncertainties, some beyond the company's control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties such as: (i) construction difficulties or potential delays in the project implementation process; (ii) unanticipated delays or difficulties securing necessary permits, licenses or other governmental approvals; (iii) the risk of continuation of supply of products and components from suppliers; (iv) unanticipated problems with deploying the system on the sites; (v) available financing; (vi) actual electricity generation; and (vii) other risks described in the company's Quarterly Report on Form 10-Q for the quarter ended September 28, 2008, and other filings with the Securities and Exchange Commission. These forward- looking statements should not be relied upon as representing the company's views as of any subsequent date, and the company is under no obligation to, and expressly disclaims any responsibility to, update or alter its forward- looking statements, whether as a result of new information, future events or otherwise.

SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owners.

SOURCE SunPower Corp.

 
http://www.sunpowercorp.com

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