Sustainable Energy Technologies Ltd.

Sustainable Energy Technologies Ltd.

October 05, 2010 08:30 ET

Sustainable Energy Draws on Equity Commitment to Help Meet Growing Demand

- Doughty Hanson to Invest $800,000 in First Preferred Shares

- Sustainable Energy Commits to Increased Production to Meet Rapidly Growing Ontario Order Book

- Securing Long Lead Time Components for 2011 Production in US and Europe

- Ontario Solar Market Will Rank in World's Top Ten in 2011: - 600 MW - 700 MW Demand Forecast

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2010) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable Energy" or the "Company") announced today that it has drawn $800,000 under a $3 million standby equity commitment with Doughty Hanson (See News Release dated August 23, 2010) by issuing 80,000 First Preferred Shares to Doughty Hanson. The proceeds enable the Company to make commitments on longer lead time items for 2011 production, and to help fund its production ramp for the balance of 2010.

In the past 6 weeks, Sustainable Energy has seen a marked increase in demand for SUNERGY inverters from new Ontario accounts, as well as from repeat orders, indicating that the long awaited Ontario solar market is beginning to gather momentum. According to Clear Sky Advisors (Sept 15, 2 010) a research and advisory firm specializing in renewable energy, new installations in Ontario will reach 694 MW by the end of 2011, and as much as 3 GW by 2015, moving Ontario into one of the top 10 solar markets in the world.

"We are experiencing very strong demand in Ontario, especially in rural areas, and for 10kW micro-Fit applications, where project approvals by the OPA seem to be accelerating," said Michael Carten CEO of Sustainable Energy. "In these applications, we are taking market share from incumbents based on a combination of higher system yields in off peak periods, and the unique ability of the SUNERGY inverter to operate safely in Canadian winter temperatures below minus 20 degrees Celsius. We estimate that more than 200MW of micro-Fit projects will be installed in 2011 and our goal is to take a sizeable share of this market.

"We are also very pleased at the growing recognition by building owners and project developers of the value of distributed inverters over larger central inverters for systems up to 250kW. This includes: less downtime, more accurate maximum power point tracking, and a lower maintenance cost over the life of the project. These factors lead to a lower cost of ownership and an overall higher return for project owners," added Carten.

The First Preferred Shares, Series 10 will be issued pursuant to a commitment agreement dated August 23, 2010 with Doughty Hanson and will be similar to, and will rank pari passu with the Company's First Preferred Shares, Series 7 and Series 9. The Series 10 Shares issued to Doughty Hanson are convertible into common shares in Sustainable Energy at a price of $0.14 per share.

About Doughty Hanson: Doughty Hanson ( is one of Europe's most successful independent private equity firms. Since 1985, Doughty Hanson has undertaken more than 118 investments with an aggregate acquisition value in excess of €28 billion. Doughty Hanson employs over 50 investment professionals of 15 nationalities, located in offices in London, San Francisco, Frankfurt, Madrid, Milan, Munich, Paris and Stockholm.

About Sustainable Energy: Sustainable Energy ( designs, manufactures and distributes power inverters for grid-connected solar PV systems under the SUNERGY™ trademark. Advanced power inverters are a critical enabler of all modern solar PV power systems converting the direct current ("DC") power output of the solar PV modules into the high quality alternating current ("AC") power required by the power grid. Advanced power inverters also optimize the performance of the solar PV modules and maintain the integrity and safety of the interconnection with the power grid.

The SUNERGY inverter is the only inverter platform manufactured today, which enables the game-changing parallel system architecture with industry leading efficiencies and with an industry standard cost and form factor. Its PARALEX™ ( system architecture enables each solar module to operate independently of any other module in the system delivering 5-15% increased energy yield, without the expensive hardware and continuing maintenance cost of micro-inverter products. Every module delivers its maximum power potential while eliminating the string inverter impact of shading, soiling and other real world factors.

The extra low operating voltage of the SUNERGY platform enables a system architecture that is inherently safe and that can be installed and maintained by most building trades without the need for custom design, significantly reducing the installed system cost and increasing investor yields.

Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the US Patent and Canadian Patent Offices.

Forward Looking Information

The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: statements concerning market demand for our SUNERGY inverters, the value of our SUNERGY inverters in lower cost of ownership and increasing returns to project owners and the outlook for the Ontario solar power market. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. In particular there is no assurance that performance of the systems will be as estimated or that market demand in Ontario will materialize.

Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. Readers are also directed to the Risk Factors section of the Company's current Annual Information Form which may be found on its website or at The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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