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SPG SOLAR, INC. TO INSTALL 1-MEGAWATT SOLAR SYSTEM FOR BUTTE COUNTY CENTER IN NORTHERN CALIFORNIA

Showcase Solar System Boosts Butte County's Renewable Energy Leadership

SAN RAFAEL, CA (December 1, 2003)– SPG Solar, Inc. (SPG) announced today the award of an $8.4 million contract to design and build a one-megawatt solar photovoltaic (PV) system for the Butte County Center in Oroville, Calif., the county seat. When it is commissioned in June 2004, the Butte County solar system will be one of the top-ten largest solar energy systems in the U.S.

Four solar arrays will power three buildings: the Butte County Administration building, the East Jail and the West Jail. The solar system will feature a variety of installation methods including two ground-mount arrays, one rooftop array, and solar panels mounted on newly installed parking shade structures for a county parking lot. The solar system will provide 100% of the power for the three buildings.

Funding for the solar system will be matched 50% by a renewable energy rebate from the Self-Generation Incentive Program of PG&E, the local utility, administered by the California Public Utilities Commission.

"The people of Butte County should be credited for building a model of energy independence for other California communities," said Dan Thompson, president of SPG. "With this large solar energy system, Butte County will be very close to achieving zero energy growth. The solar system also has environmental benefits for the whole area, and is a powerful educational opportunity for students and the public to learn about energy and especially about solar."

SPG will install over 9,000 Sharp 185-watt solar modules for the system, made by Sharp Manufacturing Company of America, Memphis, Tenn., a subsidiary of Sharp Electronics Corporation. Xantrex inverters will be used for the project. The system was designed and engineered in-house by SPG and will be installed by SPG crews.

"Sharp is very enthusiastic about working with Butte County on this solar system, an example of the latest solar technology in service to the public," said Ron Kenedi, General Manager of Sharp's Solar Systems Division. "Sharp is also very pleased and proud to be associated with an excellent system designed and built by SPG."

SPG engineered the solar system to generate more power than the buildings need during peak demand hours. Under California's net metering regulations, public utilities must credit energy producers for the electricity they send out to the grid. On sunny days the solar system will send the extra energy it generates to the grid and earn credit with PG&E. At night or on rainy days PG&E will provide the power and Butte County will tap into the credit earned while the sun was shining. The four PV arrays combined with the sunny-day credit will eliminate the annual net electric bill for each of the buildings.

The 1 MW Butte County solar system will replace the equivalent energy used by 400 California homes, leaving that energy on the grid for use by other ratepayers. The solar system will prevent 1,250 tons of carbon dioxide from being emitted into the atmosphere each year by a typical gas-fired power plant. It takes 100 acres of trees to absorb that much CO2 from the atmosphere annually.

The arrays will be individually monitored with a live, web-based solar output monitoring system developed by SPG. The monitor delivers actual power production in AC watts through a secure web site. SPG customers view the live data online to verify system performance, energy cost savings and ROI. This unique SPG offering adds a significant new layer of performance-based accountability to the solar industry.

SPG designed the high-performance solar arrays to be tilted at the angle that collects the most sunlight throughout the year. Tilted panels also allow cooling air to flow over their back and front. PV panels are made of silicon, and like computer chips are more efficient when they're kept cool-heat causes electrical resistance and decreased electric production. Tilted solar arrays also shed dirt and stay clean to absorb more sunlight.

Butte County is one of the most sophisticated users of renewable energy in the nation. Along with abundant hydroelectric resources, Butte County will host over two megawatts of solar photovoltaic power when the Butte County Center is complete. The city of Oroville has more installed solar energy per capita than any other community in America, and declared itself Solar City, USA by mayoral proclamation on Earth Day 2003.

How Solar Works

Solar energy systems consist of three components: PV panels, inverters and a performance monitor. PV panels convert sunlight into DC (direct current) electricity. The inverters change the DC into AC (alternating current), the same power supplied by electric utilities. The AC is distributed through a building's electric service panel and flows to outlets, lights and switches. The performance monitor shows the amount of power the system is generating at any time to verify production. Solar is a clean and renewable form of electricity generation. PV systems generally have no moving parts (with the exception of solar tracking systems), is silent, runs all the time while the sun is shining, and produces zero emissions-air, ground or water.

About SPG Solar, Inc.

SPG is the industry's most experienced developer, designer, and installer of solar photovoltaic (PV) systems for homes, businesses, and large-scale commercial and government facilities. SPG's commitment is to build the highest-performing solar PV systems with the highest return on investment. The result is clean, reliable electricity that reduces or eliminates customers' electric utility costs. SPG has installed over 500 solar systems in California, including the Potrero Hill Head Start in San Francisco, and Westmont High School in Campbell, California. Major projects include the Vallejo Police and Fire headquarters, Vallejo, Calif., and the 520 kW system for the Sewerage Commission-Oroville Region. SPG is a licensed and bonded California General B Solar C-46 and Electrical C-10 Contractor, License #759086.