Sustainable Energy Technologies Ltd.

Sustainable Energy Technologies Ltd.

September 01, 2010 08:30 ET

Sustainable Energy Provides Update on Changes in Ontario Solar PV Market


- Ontario restores economics for ground based micro-Fit (10kW) market;

- Less than 5% of 19,000 applications have been approved and commissioned;

- OPA promises to eliminate 19,000 system backlog by end of September 2010;

- Estimated 200 MW demand for solar inverters in SUNERGY power ratings through 2011;

- SUNERGY is only inverter in its power rating CSA certified for outdoor installation

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2010) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable Energy" or the "Company") today provided an update to stakeholders on its assessment of the Ontario market for its SUNERGY products following the announcement by the Government of Ontario concerning revised feed in tariffs for ground based micro-FIT solar PV systems.

On August 13, 2010 the Government of Ontario announced that it will adjust feed in tariffs for ground based micro-FIT systems to $0.642/kWh up from the previously proposed $0.588 per kWh. The new rate is intended to ensure a yield that will continue to attract long term investment in this segment of the market. The micro-FIT program encompasses rooftop and ground based systems with a rated power output of less than 10kW AC. Rooftop systems will retain the $0.802/kWh feed in tariff. Ground based systems based on applications submitted before July 2, 2010 will also retain the $0.802 rate provided that they are installed before May 31, 2011; all others will use the lower $0.642/kWh tariff.

Significantly, the announcement stated that less than 5% of the more than 19,000 micro-FIT applications have been approved and commissioned indicating a very substantial backlog of projects. The Ontario Power Authority has committed to clear this backlog, and has indicated that most ground- mounted applications that have been submitted to date will be processed by the end of September this year.

"With some justification, the Government has decided that the feed in tariffs for ground based systems were too high, given the declines in PV module prices since the program launch," said Michael Carten, CEO of Sustainable Energy. "Our analysis indicates that the economics for ground based systems will certainly support continued investment in this segment. Moreover, given the exceptional economics realized under the higher prices we expect that the grandfathered backlog will likely all be installed by the May 2011 deadline."

"This is an exceptional opportunity for Sustainable Energy since the micro-FIT programs require inverters in the SUNERGY power rating; and, in most ground mount applications that they be rated for outdoors," added Carten. "Most inverter suppliers in the market target warmer climates and do not manufacture outdoor-rated products for the cold Canadian climate. To our knowledge, the SUNERGY II inverter is the only CSA listed outdoor rated inverter in its class. 

"We estimate the market for micro-FIT applications at more than 200 MW over the next 18 months with over 50% being ground-mount systems. Our goal is to take a substantial share of this market. With the announced equity funding commitment from Doughty Hanson, we expect to be in a position to do so," Carten concluded. 

About Sustainable Energy: Sustainable Energy designs, manufactures and distributes power inverters for grid-connected solar PV systems. 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 extra low operating voltage (50v – 100v) of the SUNERGY ELV platform enables a system architecture that is inherently safe and that can be installed and maintained by most building trades without the need for PV specialists, significantly reducing the installed system cost and increasing investor yields. The SUNERGY inverter is rated for operating conditions ranging from minus 40 degrees Celsius to plus 50 degrees Celsius. 

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, it includes: statements concerning the impact of our technology on solar PV system performance; statements concerning the potential for sales in the Ontario market which are dependent on a number of factors including the rate at which the market grows and the administration of the Ontario Feed in Tariff Program; and statements concerning the potential for sales to Conergy during 2010 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 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. 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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