Solar3D High Efficiency Solar Cell Fits into Highest Growing Segment

Next Generation Crystalline Silicon Solar Cell Technology, like Solar3D’s, to Grow Dramatically, Report Says

Santa Barbara, CA – March 27, 2012 – Solar3D, Inc. (OTCBB: SLTD) the developer of a breakthrough 3-dimensional solar cell technology to maximize the conversion of sunlight into electricity, today spotlighted a report published by Research and Markets which forecasts the dramatic shift in the solar industry’s next generation to high efficiency solar cells. Solar3D’s 3-dimensional solar cell is forecast to be the highest efficiency among currently anticipated next generation silicon solar cells.

Jim Nelson, CEO of Solar3D, commented, “There is a greater emphasis worldwide on rooftop applications, as well as other limited footprint uses of the solar cell. Due to a reduction in government subsidies, users of solar energy are desperate to find a product that will be able to deliver higher efficiency, in a smaller space, for less money. That has been the singular focus of our work over the past 2 years. And we are on the verge of doing just that as we finalize our prototype.” 

Solar3D announced its findings that its design is expected to result is a solar cell that will deliver 25+% efficiency—highest among all existing designs in silicon. However, efficiency is only part of the equation.

Nelson continued, “Manufacturers measure the efficiency of their solar cells under optimum conditions—with sunlight shining directly onto the cell from the best angle. But these measurements do not represent real world conditions, because light collection drops off markedly as the sun delivers light from more extreme angles during different times of the day. The real deliverable is not efficiency but the total power generated by the solar cell throughout the day or throughout the year. Our wide angle collection feature makes simple comparison of solar cells based on efficiency inaccurate and obsolete.”

The company’s analysis indicates that a typical 17% efficient solar cell performs more like a 5% efficient cell when light is shining 20 degrees from the side, such as during the morning and evening hours. Even high efficiency cells like Sunpower’s IBD only behave like traditional cells in their light collection techniques. Solar3D’s analysis shows that the 3D cell can maintain its high efficiency for a longer period of time and can generate as much as double the power output of conventional solar cells. 

Solar3D is currently constructing a prototype of its 3-dimensional solar cell using silicon, “It is our fundamental belief that low cost silicon is the best material for solar cells and 3D is the best way to get more performance out of silicon,” Nelson concluded.

About Solar3D, Inc.

Solar3D, Inc. is developing a breakthrough 3-dimensional solar cell technology to maximize the conversion of sunlight into electricity. Up to 30% of incident sunlight is currently reflected off the surface of conventional solar cells, and more is lost inside the solar cell materials. Inspired by light management techniques used in fiber optic devices, our innovative solar cell technology utilizes a 3-dimensional design to trap sunlight inside micro-photovoltaic structures where photons bounce around until they are converted into electrons. This next generation solar cell will be dramatically more efficient, resulting in a lower cost per watt that will make solar power affordable for the world. To learn more about Solar3D, please visit our website at http://www.Solar3D.com.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

Press Contact:

Ann Norman

ann_norman@coltrin.com

801/350-9412

Solar Just Warming Up

The March 14^th article in Renewable Energy World referring to the growth of the US PV market reports some remarkable progress in solar sales.  Especially amazing is the incredible growth of solar in 2011, a year when prices came down dramatically, and subsidies for installations were beginning to expire.  Of course, some of the growth happened because of the combination of the two—decline in prices and a need to get subsidies while the getting was good. 

However, I believe that we are beginning to see a serious migration to solar, as these prices drop.  The industry doesn’t have to get all the way to grid parity to see the migration.  It will happen all the way down the cost curve decent to parity, until, when solar is actually a legitimate economic alternative, it will be the energy source of choice.

Solar3D’s new 3-dimensional solar cell, with its high efficiency and its wide-angle collection approach, has the promise to take the entire industry a quantum leap ahead of where it is today.  The enthusiasm of the pent up demand for economical solar, and the economics of 3D solar will come together to produce amazing results for the industry and for the world.

High Efficiency, Wide Angle Light Collection—the Holy Grail of Silicon Solar

You have undoubtedly seen our press releases regarding our new solar cell design and what it promises.  First, the fact that we have a solar cell that is projected to collect more light than any other solar cell based in silicon is very exciting.  But perhaps more importantly, the ability of the solar cell to collect light more effectively when the sunlight shines in from different angles is very compelling.

First, the only applications that will be able to collect light at various times of the day or various seasons of the year as effectively as Solar3D’s solar cell will be those that are tracking the sun—and even tracked solar arrays will not be as efficiency as the 3-dimensional solar cell.  So instead of producing power in proportion to our efficiency increase (ours is 25.47% efficient, relative to conventional technology efficiency of, say, 17%), we will produce perhaps 200% as much power in a day, and more in a year as seasons change.

Furthermore, when it is cloudy out and the light is diffuse, the 3-dimensional solar cells wide-angle collection should facilitate the effective light collection throughout the day, vs. the dramatic efficiency loss by conventional technology. 

This is more that we have been hoping for in the creation of this next generation of solar cells. 

Renewable Myopia

Renewable Energy World published an article on an executive roundtable addressing The Future of Utility Scale renewable.  This article is very interesting to me. The myopic perspective of the industry which is focused on what is and not what has to be in order to become competitive is to narrow to advance the interests of the nation or of mankind.  It requires a broader perspective of how things fit together—which is what is required to really get the renewable ball over the end line.  But clearly, they are going the right direction.  They talk about costs and competition which is critical, but fall short of discussing innovation and how to really make a change.  

The moderator asks a question that is naive saying, “will there be a time when the industry doesn’t need subsidies”.  A better question would be, “what does the industry do when subsidies go away.”   

What does “competition: fair or unfair” mean to anyone.  It is a question that seems to have warped in from Atlas Shrugged.   Don’t whine about the fact that it is no fair; become great through innovation so that you can’t be denied.

Because they are already installing, they don’t focus on innovations.  But the fact is that only through innovation will they have the boom that everyone hopes will come in renewable energy.  

Market Research Firm Agrees that the Future of Solar is in High Efficiency

Greg Shepherd of HIS iSuppli published an article in which he confirmed the basic premise upon which we have built our company and product.  Greg said, “top module and cell suppliers are realizing that higher-efficiency techniques could be a key competitive weapon, allowing them to achieve market differentiation by offering superior products. This represents a fundamental shift in strategy that could allow the PV industry to slow price erosion and suppliers to improve profitability.”

We believe that the work at Solar3D and other entities focused on affordable high efficiency are doing the work that is the key to the future of the solar power market. 

Buffett Announces Investment in Solar Project

An article in the LA Times printed on December 8, 2011, discussed the impact on the solar industry that is likely to come as a result of Warren Buffett’s MidAmerican Energy Holdings acquisition of a $2 billion photovoltaic farm in San Luis Obisbo, California.

“’In a lot of ways, this is classic Warren Buffett,” said Bruce Bullock, executive director of the Maguire Energy Institute at Southern Methodist University. “He comes into an industry that is starving for capital investment. At the same time, this is something that also tells people it’s time to take solar power seriously.’”

The investment is a good one for a capital company looking for a solid return over a long period of time.  It is also a good example of how government should stay out of this space—solid investors and their analysts know how to pick good investments.  If smart money passes on a green investment, why should government get involved.

The key point here is that solar power is worthy of being taken seriously.  It is going to be the fastest growing industry in the world for the next 30-50 years.  It will be an industry with well over $1 trillion in revenue in today’s dollars at some point in the not too far distant future. 

Google knows that with their investment in Solar City.

Buffett knows that with his investment in solar.

Selective investments in new technology will be even more lucrative as it is the economics of the new technology that will drive the future growth.

A Call to Action: Correcting the System Failure that Caused Solyndra: Part 4

The Crucial Role of Government Investments

 The only place government has been effective is in support of basic research.  National laboratories, technology produced under government grants at universities, and the commercialization of technology that has been developed for the military are national treasures. 

 The government created the Advanced Research Projects Agency-Energy (ARPA-E) program, which is an agency that funds research and development of advanced energy technology. This is the area where private funding is not abundantly available because investors are reluctant to accept the technology development risk.

Therefore, in this area government does play a crucial role in the ongoing effort to move the country toward green technology and energy due to the reluctance of investors to accept technology development risk (completely appropriate based on their incentives).  

 Simply stated, government should be involved in funding the basic research and development for new technologies. However, it should not be involved in the commercialization of such technology.

 It is proposed that:

1.      Government immediately get out of the loan guarantee program and stop investing in companies beyond proof-of-concept stage. 

a.       Making the decisions to guarantee loans is essentially making an investment decision that bureaucracies are not equipped to make.

b.      Bureaucracy’s agenda-driven analysts do not have necessary training, proper incentives or appropriate reporting structure to make investment grade decisions.

2.      Government begins to exclusively invest in new technology in the proof-of-concept stage through ARPA-E.    The investment would be made in the entity developing the technology whether it be an individual, a university or a company.

3.      ARPA-E become a public/private partnership, with the mandate to invest in game-changing energy technology research.

a.       It will be staffed with professionals accustomed to making these types of investments, and qualified to evaluate projects on their economic potential and practicality. 

b.      Government should provide the funding, but the partnership should be independent of elected representatives’ agendas.

c.       The partnership should be evaluated on the basis of the success of their investments.

d.      The professional investors should be told to make the focus of their investing broader than typical venture investing in order to encourage other innovative ideas. Moreover, they should hand off to private equity to ensure commercial viability.

e.       Placed in the right hands this concept could be implemented in the first quarter of 2012.

Obama’s “Green Energy Mr. Fixit” Agrees with Solar3D

An article in the Wall Street Journal Wednesday published what appears to be the acceptance letter from Herbert Allison to President Obama when offered the job of reviewing the Federal Loan guarantee program.

His thinking is clear and brilliant.  He agrees with us. 

A Call to Action: Correcting the System Failure that Caused Solyndra—Part 3

A New Approach is Needed:

 Simply stated, there are three stages to introducing new technology into the market:

1.      Innovation.  Universities, government labs and some companies willingly and energetically take the technology risk of exploring new ways of doing things, and work on proving a concept. In this specific situation, we are talking about creating energy.

2.      Go To Market.  When a specific technology has been developed and its concept proven, the focus moves to figuring out the best way to develop a prototype which can be manufactured and sold in the marketplace.  This stage is typically funded by angel investors and venture capitalists.

3.      Expansion.  Once a specific technology has reached the market, it needs to be developed into a real, growing product that is both used and useful, thus crossing over into adoption by the public.  Venture capitalists and private equity provide investment for growth in these stages.

One of the greatest strengths in America is Innovation.  It is a long and rich tradition for the US to lead the world in innovation.  Government currently plays a role in providing funds to many companies in the proof-of-concept stage, as well as to national labs and universities developing new technologies.  Steps two and three should be left to private investors.

It is time to make a change, and to restructure the government’s broken system that currently funds agenda-driven enterprises that have little or no chance of a successful early development stage. The intent of such agenda-driven grants is to create jobs.  But when taxpayer money is invested, spent, and lost, the company fails, and the jobs are lost. Government dabbling in investments beyond the initial point-of-concept stage is either competitive with private funding or it involves making investments that private investors wouldn’t make.  After proof of concept,  good investments should be able to get private funding and negate the need for government support. Bad investments shouldn’t be funded at all.

A Call to Action: Correcting the System Failure that Caused Solyndra: Part 2

What is wrong with current process:

Private investment companies, in the form of venture capitalists and private equity players, employ some of the brightest business analysts in the world.  The investment world coined the term “smart money” for a reason.  No doubt, investment in Solyndra was shopped to many venture capitalists —especially since Solyndra was headquartered next door to Silicon Valley, world headquarters of venture capital.  At the stage at which the guarantee was made, private capital could not find a reason to invest in Solyndra without a government backed loan guarantee.   This should have raised questions, the answers to which would have disqualified the Solyndra guarantee.   At that point, barring a non-existent federal strategic imperative, Solyndra should have been left to make its own way—AS EVERY EARLY STAGE COMPANY IS, LACKING A VIABLE BUSINESS MODEL. 

The Agua Caliente installation, in Yuma County, Arizona, is one example of the government granting special project loan guarantees to companies. The feds guaranteed a $967 million loan to create a large solar plant for PG&E.  According to sources within the company, the project would have been done even if government funding were not available.  So why was the unnecessary guarantee made?  Given the current high cost of solar relative to electricity generating alternatives, and the amount PG&E would have to charge for its new clean energy, one must challenge the contribution of such a guarantee to US global competitiveness and energy consumers economic well being.  

Interestingly, the first thing mentioned in the press release put out by the government announcing the Agua Caliente investment was that it would create 400 new construction jobs, which were temporary jobs by definition—not incremental permanent jobs that would bolster long term economic health. 

The Solyndra guarantee was made as a politically-fueled, agenda-driven investment—not as a carefully thought out economically-justified strategic decision.

Some $20 billion in the form of loan guarantees have been disbursed by the government (including Solyndra and Agua Caliente) n roughly the same political way.

I find in managing companies and groups of people in many circumstances, that when problems arise, it is rarely that the people themselves do not want to do what is right.  It is more often with the systems involved and their built in incentives.  Three serious problems with the government and its paradigm of the world are:

1.                  Government, regardless of who is in charge, believes that things get better when it gets involved.  This is false.   Just ask Fannie Mae and Freddie Mac.

2.                  The agenda of many government bureaucrats, whose role is to distribute funds to various recipients, is to keep their jobs by following clear directives within tightly defined government guidelines.  They work for the elected representatives, and do the bidding of the rulers of the day.  Thus, the responsibility of certain bureaucrats’ to make sure that exactly the right thing happens in terms of government funds has been severely distorted.

3.                  It is becoming more and more common for elected representatives to place re-election higher on their list of priorities than doing what is right for America.  In the case of Solyndra, this meant guaranteeing a loan to a company that was doing poorly on the hope that it might deliver 1,100 jobs—in the hope that an inadequately analyzed campaign promise could be realized.  The result was that Solyndra has gone bankrupt, all those jobs are lost, and $527 million of the taxpayers’ money has been vaporized.

Next installment will be out on Wednesday.