Major Supply Contract Signed Between California PV Companies

The deal between SunPower and Powerlight, both California companies, is the largest product supply contract in SunPower's 20-year history. The deal calls for delivery of $330 million dollars worth of solar panels between the end of this year and through 2009.

"This agreement marks another milestone in SunPower's growth plan as we continue to build and diversify our global customer base," said Tom Werner, SunPower CEO.

The contract covers a variety of SunPower solar products used in PowerLight projects worldwide as well as in their home state of California. The agreement includes a clear effort toward building integrated photovoltaic (BIPV) solar, which is likely to become more commonplace in the market.

Under the agreement, PowerLight will design SunPower's A-300 solar cells into a custom-designed solar panel used in its SunTile roof-integrated system for new home construction. Using SunPower's rear-contact cells, which provide a uniform black appearance, PowerLight's SunTiles will interlock with roof tiles and shingles to provide an aesthetic, architecturally seamless look for sunlight-to-power solar technology.

The contract was signed at the end of the third quarter of 2005. Volume deliveries under the contract begin in 2006 and ramp up with SunPower's planned capacity expansion.

"SunPower's high-efficiency solar technology improves the financial and performance equation of our products and systems," said Dan Shugar, PowerLight's President. "We're focused on delivering maximum value to our customers, and SunPower's technology fits perfectly with our application platforms."