SOURCE: Solar EnerTech Corp.

December 18, 2006 09:00 ET

Solar EnerTech Announces Beta Release of Power Conditioning Software and Applauds US Federal Solar Energy Tax Credit Extension to 2008

MENLO PARK, CA -- (MARKET WIRE) -- December 18, 2006 -- Solar EnerTech Corp. (OTCBB: SOEN) (the Company) wishes to advise that while participating at a renewable energy symposium in Beijing, Management warmly welcomed the recently passed legislation enacted by the US 109th Congress last week which is expected to significantly benefit the Company's upcoming sales and marketing efforts. The act extends the 30% solar energy investment tax credit for homeowners and businesses for one additional year, through to the end of 2008.

Solar Enertech applauds this one-year extension of the solar ITC in H.R. 6111, the "Tax Relief and Health Care Act of 2006," as it gives the Company a major boost in which to launch the marketing efforts of its solar module products that have just begun to roll off the Shanghai production line during the last week of November.

Company CEO Leo S. Young stated at the symposium, "This bill emphasizes a solar growth policy, and provides a time window for solar projects in the 12- to 18-month pipeline. This bill is clear recognition by Congress that solar energy is indispensable to our clean energy future. It can turbo-power our immediate sales to the State of California and elsewhere throughout the US and it'll ensure the solar industry will continue to grow at record rates in 2007 and 2008."

Management is also pleased to note that a further announcement made at the symposium advised the industry attendees that the beta version of Solar EnerTech's revolutionary power quality software has been put into the active testing phase. The software is under development in order to exploit the many opportunities presented by the increasing need for conditioning widely varying grid-bound renewable energy sources coming increasingly on-stream.

The Company's software team, under the direction of its Research and Development Division, is an important part of Solar EnerTech's strategic planning and began its software development program in late July in an effort to have its proprietary software system out before the end of the year. The software package enables power system integrators the ability to design power-conditioning solutions that can assist renewable energy producers who generate direct current (DC) electricity then convert that current into alternating power (AC) and which ultimately requires conditioning treatments to meet the stringent requirements of commercially operated power grids.

The beta-released software package analyzes and acts on power quality-related issues at the point of generation regardless of the type of renewable energy utilized. The design employs proprietary algorithms to analyze real time data from key sensors and to respond to system variables such as transients, harmonics, sags and swells of voltage fluctuation and phase imbalances, etc., in order for system integrators to treat the electrical output prior to commercial distribution.

Power generated from alternative sources such as wind or solar sources may not meet many of the commonly accepted power quality standards currently used by various nations, making power conditioning solutions a growth opportunity. Solar EnerTech believes that this strategic move to develop software-based power management solutions can benefit the overall industry as alternative energy becomes increasingly prevalent due to increased hydrocarbon-based energy costs and as the public, corporations, and governments from around the globe increasingly embrace the need to step up the pursuit of pollution free power generating alternatives. The Company's software development is a significant step into a global niche sector that will cultivate a vital link between renewable energy generation and existing grid transmission providers.

As announced just over three weeks ago, the company has begun its solar cell and solar module production tests as of November 23 at its Shanghai manufacturing facility. The company's goal continues to be the planned shipment of its first two containers of module product before the end of the year, while fine-tuning and adjusting the production line to sustained commercial output levels as quickly as possible.

About Solar EnerTech Corp. (OTCBB: SOEN)

Solar EnerTech is a photovoltaic (PV) solar energy cell manufacturing enterprise based in Shanghai, China, where the Company is establishing a sophisticated 42,000-square-foot manufacturing and research facility in Shanghai's Jinqiao Modern Science and Technology Park. Solar EnerTech plans to invest in PV cell research to develop higher efficiency cells and put the results of that research to use immediately in its manufacturing processes. Led by one of the industry's top scientists, the Company's R&D program will work to bring Solar EnerTech to the forefront of advanced solar technology research and production. The Company has also established a marketing, purchasing and distribution arm in Northern California's Silicon Valley.

Forward-Looking Statements

Except for statements of historical fact, the information presented herein may contain forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Solar EnerTech Corp. has little or no control.

On Behalf of the Board

Solar EnerTech Corp.
Leo Shi Young, President

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