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SPI Solar Announces 9.7 Megawatt Project in New Jersey as Part of Recently Announced KDC Solar Agreement

^{Published on 2011-08-15 13:46:43 - Market Wire}
 

ROSEVILLE, Calif.--([ BUSINESS WIRE ])--[ SPI ][ Solar ] (aSPIa) ([ OTCBB:SOPW ]) a leading vertically integrated photovoltaic (aPVa) solar developer and engineering, procurement and construction (aEPCa) services provider, announced today that it has been awarded a contract by KDC Solar LLC (aKDC Solara) to serve as the EPC contractor for the design and construction of a 9.7 megawatt fixed-ground-mount, distributed generation solar energy facility (SEF) which will be owned by a subsidiary of KDC Solar LLC and provide electricity for onsite consumption by a subsidiary of an international pharmaceutical companya™s operations at their New Jersey corporate headquarters. The project is a direct result of the three-year agreement SPI, KDC Solar and LDK Solar (aLDKa) announced in June, 2011. The agreement established SPI as the preferred EPC services provider to KDC for a minimum commitment by KDC Solar to offer 150 megawatts of SEF projects over 36 months for SPIa™s consideration. The agreement also set as a goal for KDC Solar and SPI to potentially develop a total of 300 megawatts in SEF projects across New Jersey and New York. In addition, SPI and LDK agreed to provide construction financing and facilitate long-term financing, supported by LDK, of up to $750 million for projects.

"This project is a perfect example of the KDC Solar, SPI Solar and LDK Solar alliance"

For this first project, SPI Solar will build the SEF on land owned by KDC Solar that is contiguous to the pharmaceutical companya™s New Jersey headquarters. Through a long-term power purchase agreement, the pharmaceutical company will buy the power generated by the SEF from KDC Solar at significantly lower electric rates on a long term basis. In addition to designing and building the facility, upon completion of construction SPI will also provide long-term operations and maintenance services for the facility, ensuring both continued SEF operations and optimal power production. The SEF will be powered exclusively by LDK Solara™s high-performance modules.

aThis project is a perfect example of the KDC Solar, SPI Solar and LDK Solar alliance,a said Stephen Kircher, CEO of SPI Solar. aIt represents precisely the type of projects we believed our alliance would yield when we announced our three-way agreement in June,a Mr. Kircher explained. aWe look forward to breaking ground and beginning construction on this project as we continue to jointly pursue many other large-scale projects.a

aWe are very happy to be working with SPI and LDK on this project,a said Hal Kamine, CEO of KDC Solar. aThis project is perfectly aligned with our focus on creating facilities to supply long-term, inexpensive solar electricity that yields a significant reduction in the cost-of-operation to our customers,a Mr. Kamine concluded.

About Solar Power, Inc. ([ OTCBB: SOPW ]):

Solar Power, Inc. (SPI) is a vertically integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. Through the Companya™s close relationship with [ LDK Solar ], SPI extends the reach of its vertical integration from silicon to system. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities to its business, government and utility customers. For additional information visit: [ www.spisolar.com ].

Safe Harbor Statement:

This release contains certain aforward-looking statementsa relating to the business of Solar Power, Inc., its subsidiaries and the solar industry, which can be identified by the use of forward looking terminology such as abelieves, expectsa or similar expressions. The forward looking statements contained in this press release include statements regarding the Companya™s ability to execute its growth plan and meet revenue and sales estimates, enter into formal long-term supply agreements, and market acceptance of products and services. In particular, this release contains forward looking statements about the viability of projects to be reviewed, and whether those projects will ultimately meet underwriting criteria, or financial modeling sufficient for the Company to undertake the projects. The commitments are to introduce and offer the projects, and the Company cannot predict whether all projects will fit within its financial model for execution, or upon terms that are acceptable to all parties involved. These statements also involve known and unknown risks and uncertainties, including, but are not limited to, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.