SPI Solar Announces Agreements With GD Solar To Acquire And Develop Multiple PV Projects

Solar Power, Inc. (“SPI” or “SPI Solar”) ( OTCBB: SOPW), a vertically-integrated photovoltaic, or PV, developer, today announced that its wholly owned subsidiary, SPI Solar Power Suzhou Co., Ltd. (“SPI Meitai Suzhou”), has entered into several agreements with GD Solar Co., Ltd. (“GD Solar”), a wholly owned subsidiary of Guodian Technology & Environment Group Corporation Limited (1296:HK)—a leading supplier of solar and other renewable energy solutions—to acquire existing PV projects from GD Solar and develop new PV projects with GD Solar.

Mr. Xu Zhong, General Manager of GD Solar, said, "We are excited to announce this strategic partnership. SPI Solar has demonstrated its ability to rapidly scale in the China PV market. We look forward to partnering with SPI on these projects and achieving mutual success.”

Mr. Xiaofeng Peng, Chairman of SPI, added, “We are pleased to announce these agreements with GD Solar, a major player in clean energy solutions. We plan to leverage our unique strengths to grow our businesses and expand our roles in the development of PV power in China. We are excited to work with GD Solar to strengthen our leading position as one of the largest PV development companies in this market.”

The agreements with SPI Solar, GD Solar and its affiliates call for the following:
  • A cooperation framework agreement pursuant to which SPI Meitai Suzhou will have a right of first refusal to purchase projects under construction from GD Solar. SPI Meitai Suzhou and GD Solar will also cooperate to develop an additional 500 megawatts (“MW”) of PV projects in China each year from 2015 to 2017, for a total of 1.5 gigawatts (“GW”). SPI Meitai Suzhou will develop, finance and hold the equity interests in the new PV projects and GD Solar will provide EPC and related services to the new projects.
  • A definitive agreement, pursuant to which SPI Meitai Suzhou will acquire a total of 100 MW of operating projects in Jinchang City, Gansu Province, from an affiliate of GD Solar, for an aggregate purchase price of RMB960 million, consisting of a combination of cash and SPI Solar’s ordinary shares. A portion of the purchase price will be used to pay for EPC services rendered by GD Solar in the development of these projects.
  • A definitive agreement, pursuant to which SPI Meitai Suzhou will acquire a total of 10 MW of operating projects in Chaoyang City, Liaoning Province, from an affiliate of GD Solar, for an aggregate purchase price of RMB100 million in cash. GD Solar has provided EPC services to these projects. A portion of the purchase price will be used to pay for EPC services rendered by GD Solar in the development of these projects.
  • A definitive agreement for the acquisition of a total of 50 MW of operating projects in Xinghe County, Inner Mongolia, from an affiliate of GD Solar, for an aggregate purchase price of RMB515 million, consisting of a combination of cash and SPI Solar’s ordinary shares. A portion of the purchase price will be used to pay for EPC services rendered by GD Solar in the development of these projects.

About Solar Power, Inc. (OTCBB: SOPW):

Solar Power, Inc. (“SPI” or “SPI Solar”) is a vertically-integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities and turnkey residential solar solutions to its business, government and utility customers. For additional information visit: www.spisolar.com.

About Guodian Technology & Environment Group Corporation Ltd. (1296:HK) (GD Solar Co., Ltd.):

Guodian Technology & Environment Group Corporation Ltd. develops and promotes environmental friendly, energy-saving solutions and new energy technologies while focusing on core R&D efforts and supporting strategic clusters of emerging industries. The company’s subsidiary, GD Solar, is engaged in the development of PV projects.

Safe Harbor Statement:

This release may contain certain “forward-looking statements” relating to the business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as “believes", “expects” or similar expressions. These forward-looking statements involve known and unknown risks and uncertainties, including uncertainties regarding whether the transactions contemplated will be successfully completed and whether the acquisition and development of the projects will be successful. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.

Copyright Business Wire 2010

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