Newsletter Q3 2009

Letter from the CEO

Dear Customers:

I am pleased to welcome you to the Energy Conversion Devices (ECD) family.
We recently completed a strategic acquisition of Solar Integrated Technologies, a company focused on the integration of our products on commercial rooftops.   We expect this transaction will significantly enhance our overall solar roofing value proposition for customers like you.

We are building on a solid foundation as the leading global manufacturer of thin-film flexible solar laminate products for the building integrated and commercial rooftop markets.  Roofing systems using our UNI-SOLAR® brand products are generating clean electricity in more than 19 countries.  We have demonstrated manufacturing operational excellence and have a strong balance sheet.  We are now combining these strengths with Solar Integrated’s customer service, field engineering, and project execution capabilities, to better meet the needs of our customers and end users in this dynamic global PV market.

We see the opportunities for solar expanding, and we have the capabilities to operate successfully in the European and U. S. markets to provide you the best possible products, service and know-how.

Please do not hesitate to provide us with feedback - we are continually searching for new ways to simplify and improve your customer experience. We have listened carefully to your feedback, and want to assure you we are leveraging the resources of our combined business to reduce the impact of the global economic crisis, and to ensure the competitiveness of our products.
Striving to provide you with the highest product and service standards, we are looking forward to continue serving our group’s loyal customers and channel partners and thank you for your past business.

Sincerely,

Mark Morelli
President & CEO
Energy Conversion Devices, Inc.

Introducing Energy Conversion Devices – the new parent company of Solar Integrated

Founded in 1960, Energy Conversion Devices, Inc. (ECD) (NASDAQ: ENER) is the leader in building integrated and commercial rooftop photovoltaics, one of the fastest growing segments of the solar power industry. The company manufactures and sells thin-film solar laminates that convert sunlight to energy using proprietary technology. ECD's UNI-SOLAR® brand products are unique because of their flexibility, light weight, ease of installation, durability, and real-world efficiency. ECD also pioneers other alternative technologies, including a new type of nonvolatile digital memory technology that is significantly faster, less expensive, and ideal for use in a variety of applications including cell phones, digital cameras and personal computers. Through its business unit Ovonic Materials Division ECD’s products also include the nickel-metal hydride (NiMH) battery, the Ovonic® fuel cell, and Ovonic hydrogen storage systems.  Through its joint venture Ovonyx, Inc., its basic phase-change solid-state storage technology is being developed and is known as PRAM or phase change memory.

Headquartered in Rochester Hills, Michigan (USA), ECD has offices worldwide, including in Europe, China, and Mexico.  ECD and its affiliated companies (excluding SIT) have over 1,700 employees globally.

Ovonic Materials Division

Ovonic Materials (OMD) is a division of ECD and involved in, among other things, NiMH batteries, hydrogen production from bioreformation, fuel cell systems, hydrogen storage systems, and the development of metal hydride and nickel hydroxide materials.  Its NiMH battery business, based on ECD’s proprietary technology, includes all aspects of licensing and royalty collection.  Through ongoing research and development, OMD has achieved the technical innovations which have helped maintain its world-leading NiMH intellectual property portfolio on which it relies to protect both joint ventures and business partners from unlicensed activities and to attract new NiMH battery licensees. The successful leverage of its IP position has created new opportunities for generating battery revenues and shareholder value.
OMD is also the business arm of ECD in manufacture and development of solid hydrogen storage systems for use in real-world applications – portable, stationary and with high motive power for educational systems and hydrogen dispensing. Their metal hydride fuel cells provide a unique combination of valuable performance (featuring fuel cells with high-power/low-cost properties), reliable performance, long-life and instant/cold start capability for use in backup & emergency power applications. OMD’s development activities also include the generation of low cost hydrogen from renewable fuels such as biomass while inhibiting the emission of CO2.

Ovonyx

Ovonyx, Inc. is a joint venture formed to further develop and commercialize ECD’s basic phase-change solid-state storage technology to form the basis of a proprietary family of high-performance nonvolatile optical and semiconductor memory and information process devices using PRAM or phase change memory.  The objective is to provide nonvolatile computer data storage with the speed of current volatile DRAM (Dynamic Random Access Memory) memory at a lower production cost and to develop new, fast computer architectures.  By removing the distinction between FLASH, SRAM (Static Random Access Memory), and DRAM, which are used in today's personal computers, designers will be able to simplify and speed up the memory process.
Ovonyx has established joint development programs with licensees Intel, STMicroelectronics, Elpida and BAE Systems. Several other organizations around the world are engaged in the development of the OUM devices.

At Solar Integrated service is written with a capital S!

Solar Integrated’s website is now available in numerous languages.

For us customer service and your convenience are of utmost importance: From now on you can enjoy our website in your favorite language!

As a global operating company we want to be as close as possible to the market and most importantly, to our customers.

A language is an inseparable part of a nation’s culture. Solar Integrated has offered multilingual service for a while but has always strived for perfection. Now we have taken another step forward: Our website is now available in English, French, German, Czech, Italian and Spanish.

This will add to the transparency of our products and services and facilitate communication to the market and vice versa. We all know - improved communication means better and faster service!

Also get our quarterly newsletter to be up to date concerning the latest offers and developments of Solar Integrated – of course, in your favorite language!

Award winning projects by Solar Integrated

Focusing on renewable energy contributes to reducing climate changes and improving the quality of life. Solar energy also involves the possibility to benefit economically from various incentive systems and positive effects on property value and reputation of a company.

Solar Integrated’s installations in Spain and Switzerland convinced the jury and were awarded “Best Photovoltaic Installation in the Community of Madrid for 2009” and the “Swiss Solar Award 2009”. Solar Integrated’s SolarRoof Membrane scored with innovative design and a high level of building integration. Meeting environmental and economic objectives through solar energy
Solar energy is an emission free form of power generation that can help decrease our dependency on fossil fuels from often politically and economically instable countries. Furthermore solar energy can contribute to maintaining energy security since accessible reserves including coal, gas, uranium, oil and crude oil are expected to be exhausted shortly.
But not only does our environment benefit from the focus on renewable energy, there are also economic objectives to be aimed at. Businesses can profit by a strengthened reputation, increased credibility and shareholder value. In addition incentive schemes such as feed-in tariffs are offered by about 50 countries around the globe.

A number of communities in different countries have acknowledged the benefits solar energy has to offer and encourage the use solar energy. In line with this objective, prizes are awarded to institutions, schools, persons or associations particularly committed to promoting renewable energy.

PV-installation in St. Gallen largest of its kind in Switzerland

Against the background of discussions about climate changes the municipality of St. Gallen preferred a sustainable solution for the 26-year old roof of the stadium stands.  Desperately in need of renovation the roof offered the possibility to combine the renovation with the installation of a solar system.
The tilt angle of just over 10° eliminated conventional crystalline silicon PV modules as an option because shade and the unfavorable incidence angle of the sun would have minimized the electricity yield.

Solar Integrated’s SolarRoof Membrane is ideal for these conditions and can create continual earnings.

Due to the tilt angle just over the specified 10° an exception had to be approved by the fire protection department of St. Gallen. In the end the SolarRoof Membrane solution could even comply with the strict Swiss guidelines and fire protection laws for flat roofs.
The installation consisted of three steps.  As a support layer an oriented strand board was added on the wooden roof construction underneath.  Subsequently, a non-combustible felt coat and a plastic liner were applied. After this procedure the roof was ready for the installation of the 98 SolarRoof Membrane modules. The flexible modules can be rolled out and welded on by a roofing company.
The PV-modules are connected to converters by cable without penetrating the roof. This installation method of the durable 4.9 kg per square meter light system can be accomplished fast and uncomplicated.
The 57.45 kWp PV-System produces 53 000 kWh electricity per year that is fed into the network of the municipal energy supplier of St. Gallen.  It meets the demand of 13 family homes and keeps 54 tons of carbon dioxide from polluting our air.

The now active system won the “Swiss Solar Award 2009” in the category “energy systems for renewable energy” organized by the Swiss Solar Agency since 1991. The prize will be presented at the award show as part of the exhibition “Building & Modernization” in Zurich on September 4th. Furthermore the aesthetically appealing installation on the Gründenmoos stadium is now automatically nominated for the “European Solar Award”.

Prize for first of its kind photovoltaic installation on the Equinoccio commercial center in Madrid

Earlier this year Solar Integrated’s SolarRoof Membrane won another award of the municipality of Madrid for the installation on the shopping center in Madrid by turnkey solutions provider OpciónDos. The original plan to install conventional crystalline silicon modules was abandoned in favor of the innovative thin-film membrane due to the age and leaking problems of the existing roof.

Not only does the SolarRoof Membrane meet both needs- waterproofing requirements and profitable energy generation.  The innovative solution also brought about additional benefits in form of publicity for Unibail-Rodamco and the shopping center.

4.5 million visitors of the commercial center per year can now reflect on the information offered by a real time display included in the PV-system.

The 97.92 kWp installation produces approximately 125 MWh of electricity per year. Until April 2009 the system had produced enough energy to meet the demand of 2600 “Class A” refrigerators or 400 family homes. The production of the equal amount of energy by fossil fuels would have generated 46.5 tons of carbon dioxide emission.  To equalize the effect on our environment 12 000 trees would have had to be planted.

The Unibail-Rodamco solar installation was awarded the first prize for “Best Photovoltaic Installation in the Community of Madrid for 2009” by the government of the community of Madrid. The award is part of the Madridsolar campaign to promote solar energy.

Combined technical power – introducing the European Solar Integrated / United Solar technical team

Since Energy Conversion Devices (ECD) acquired Solar Integrated Technologies in August this year three companies have joined forces. ECD, co-subsidiary United Solar Ovonics (USO) and Solar Integrated have teamed up to offer our customers best quality and professional service.
Our joined European technical team consists of 12 people situated in offices in Germany (Mainz & Frankfurt), Spain (Madrid) and France. Their different backgrounds and work experience complement another and ensure professional multilingual service.

Our valued team includes

A former member of the ISPRA (Institute for Environmental Protection and Research) research team is now our PV-specialist. He is responsible for the design, engineering & planning of complete PV-installations, including evaluating and defining the best technological combination of PV-products from the portfolio of Solar Integrated and their partners and balancing the system parts. In this role, he optimizes energy yield and the costs of the system and maximizes the return on investment.

A master craftsman in the field of electrics, electronics and telecommunication is responsible for all electrical processes including cabling, inverter connection and data communication. In close cooperation with our partner companies the compliance with all technical and legal requirements is ensured. Furthermore he ensures smooth operations of installations by preparing and following up regular inspection intervals to determine maintenance requirements related to the electric and communication side of the system.

A TÜV-approved membrane welding operator is our roofing expert and ensures the meeting of all internal and external standards. Additionally he ensures smooth operations of installations by preparing and following up regular inspection intervals to determine maintenance requirements related roofing issues.

A trained structural engineering draftswoman is another member of our technical team. She has work experience in the field of construction drawing and exhibition construction with focus on 3D-construction and Autocut.
Skilled in Autocut programming, Computer Aided Design (CAD) and PV-Sol, an electrical technician with over 10 years of experience in that field is responsible for the technical planning of our PV-systems.
Our Tracking systems Project Manager ist a trained structural engineer and was part of the product development team of SIT’s Follow The SunTM product.
A manufactural engineer with experience as Senior Quality Engineer and Senior Buyer joined USO as a Process Excellence Engineer for the auburn hills plants in the US. He now provides technical support to our customers in Europe, Asia and the Middle East.

An architect with work experience in the construction of solar roofs for residences and solar parks is our application engineer and after-sales support. She and another valued team member are responsible for the support of new and already existing customers, engineering, product certifications and technical questions.

A trained mechanical engineer with experience as a process and application engineer is responsible for application work and system design.
A communication engineer with experience in the field of turnkey-system application is our application engineer and after-sales support for the Spanish & Portuguese markets and supports Spanish partners in product certification matters.

An energy and process engineer supports the French sales office in organizing and building up a support for the French market.
The combined technical team is pleased to offer you professional service and to support you at any time.

We look forward to hearing from you.

The UK plans to introduce a Feed-in tariff in April 2010

In 2010 Great Britain is going to launch an innovative feed-in-tariff program. Up to now the adopted measure has been a quota system meaning that all electricity providers have been obliged to fulfill a growing renewable energy quota that could also have been satisfied through the purchase of green certificates.
The proposed feed-in-tariffs depend on the system dimension and are as follows:

  • For systems less than 4 kW 35,8€ct per kW/h (42,2 kWh in case of retrofit)
  • For systems with 4 kW up to 10 kW 35,8 €ct per kW/h
  • For systems 10 kW up to 100 kW 32,4 €ct per kW/h
  • For system 100 kW up to 5 MW 30,01 €ct per kW/h
  • For stand-alone systems 30,01 €ct per kW/h

The proposed feed-in-tariffs will be guaranteed for 25 years with an annual digression of 7%.

This new program shall start on April 10, 2010 though systems installed before that time can qualify as well.

Energy savings tip

The green art of driving

Most of us cannot pass on the car, but it´s not a big deal to save fuel, emissions and of course some money. It´s just up to you- follow some simple rules when driving your car:

  • Anticipatory driving - let your car roll if possible
  • switch off the engine when the traffic lights seem to be red for a longer time
  • shift gears as early as possible
  • remove unnecessary ballast from your car
  • switch off you air condition, lights, radio and other electronic applications you
  • don´t really need at the moment
  • check the tire pressure regularly

Just try it out- the environment and your wallet will be thankful!