Sustainable Energy Technologies Ltd.
TSX VENTURE : STG

Sustainable Energy Technologies Ltd.

February 16, 2011 08:30 ET

Sustainable Energy Partners With Top Global Electronics Firm to Manufacture 50 MW of SUNERGY II Inverters in Ontario to Supply Growing Order Book

TORONTO, ONTARIO--(Marketwire - Feb. 16, 2011) -

  • Framework agreement signed with Germany's SRI to build 10,000 SUNERGY II units in Guelph Ontario over next 12 months
  • Growing order book in Ontario market is driven by SUNERGY enabled 25% - 30% higher energy harvests
  • Repeat orders from leading US distributor continue to build US order book and market presence
  • 32% lower product costs maintain drive to lowest manufactured cost in the industry
  • Restructured supply chain enables 50 MW production ramp with minimal capital investment in production tooling and component inventory

Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable Energy" or the "Company") Canada's solar inverter company announced today that it has entered into an agreement with SRI Canada to supply power electronics circuits and manage finished product supply chain for the Company's new SUNERGY II inverter in Guelph Ontario.

Working closely with SRI and other component suppliers, the Company has reduced landed costs for the SUNERGY II inverter by 32% from last year; and has identified changes which will cut a further 13% by year-end. This will yield excellent product margins and will lead quickly to positive operating cash flow.

Growing demand for the SUNERGY II is coming from Ontario's micro-FIT (less than 10kW) market, based on the ability of project owners to increase energy harvests by as much as 25% - 30% with the SUNERGY II inverter. The Company has also developed a network of regional distributors and system integrators who are specifying the SUNERGY II inverter for a range of micro- FIT and commercial and institutional rooftop FIT projects in the Province. 

Repeat orders have been received from leading electronics distributor Stuart C Irby (see News Release dated September 8, 2010) which will bring total US deliveries to 3MW. 

"There are now hundreds of the new SUNERGY II inverters operating in the field in Ontario, Europe and the US with no product failures," said Michael Carten CEO of Sustainable Energy. "This fact, and the depth and balance of our order book, allow us to commit to the production ramp with SRI. SRI is a world class operator which has been supplying the solar inverter industry for many years and the ideal partner to help us drive product cost down.

"Significantly, our restructured supply chain enables us to ramp production to 10,000 units per year with investment in production tooling and component inventory totalling less than $1 million over the next two – three months," added Carten.

"The recognition of the value of parallel solar over the past 9 months has been simply stunning," said Carten. "More than any other technology in sight, parallel solar has the ability to lever falling module prices into lower cost solar electricity. Our ability to deliver the value of parallel solar with the same installed cost and the same serviceability and reliability as conventional inverters is attracting attention in the US and Europe."

About Sustainable Energy:

Sustainable Energy (www.sustainableenergy.com) is Canada's solar inverter company. The Company's patented inverter technologies are a breakthrough in power inverter design and capabilities for all forms of distributed generation and smart grid applications. 

The SUNERGYTM inverter is the industry's only grid-interactive solar inverter which enables a "parallel" solar PV system architecture in higher power ratings at a cost and serviceability factor that is comparable to conventional inverters in the market. The benefits of parallel solar are: (i) 5% - 25% higher total system power output; (ii) a better fill factor enabling better coverage of available space; (iii) simplified system design and installation; and (iv) the safety of extra low operating voltages which ensures the safety of building maintenance personnel, first responders, and tradesmen who may accidentally come into contact with system wiring.

Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the Canadian and US 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, it includes: statements concerning the impact of our technology on solar PV system performance statements concerning the manufactured cost of the SUNERGY II inverter; and statements concerning demand for the SUNERGY II inverter and parallel solar. While management believes these statements to be accurate they are dependent on a wide range of factors beyond management's control and should not be viewed as a guarantee of the specific outcome. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties.

Many factors could cause the Companies' 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. The Companies do 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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