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Update: Santa Rosa City School District Defers Vote Pending Re-Definition of Proposed Solar Project

Posted on: Monday, 17 March 2008, 06:00 CDT

The Santa Rosa City School District ("SRCSD") has deferred a vote on whether to proceed with a project designed to place more than 3 megawatts of on-site solar electricity production at 10 of the district's 30 schools.

In December 2007, Solar Power, Inc. ("SPI") (OTCBB:SOPW), along with its joint venture partner Solar Power Integrators, received approval from the Santa Rosa City School District to contract for the addition of solar arrays at 10 schools within the district. The estimated total value to SPI of $23 million would have been realized through a Power Purchase Agreement (PPA). The initial proposal from SPI was based on information and drawings provided by SRCSD for each of the buildings. During the detailed phase of design due diligence conducted by SPI it was discovered that many areas of the roofs were unsuitable for large solar arrays. Subsequent collaborative discussions between SPI and SRCSD led to exploring the option of deploying elevated solar structures which would also provide the additional benefit of 1,000 weather-protected parking places and over 56,000 square feet of covered outdoor lunch and recreation areas for students. The SCRD is continuing to evaluate this, and possibly other options for utilizing its reserved rebate with the State of California for implementing solar systems within the District.

"While we are disappointed to have discovered previously unforeseen design issues that have impeded final decisions regarding this solar project, we continue to actively work with the Santa Rosa City School District to modify the project so that they can leverage the benefits of solar energy and take advantage of the rebates currently reserved," said Steve Kircher, CEO of SPI. Santa Rosa City School District currently has a total of 4 megawatts reserved with the State of California's rebate program for implementation of solar systems. "This contract was a component of previously issued 2008 revenue guidance of $60 million, and thus we will provide an update, if applicable, as soon as the SRCSD course of action is concluded. The Company will provide additional information on the status of this project in the upcoming earnings conference call," Mr. Kircher concluded.

About Solar Power, Inc.:

Founded in 2005, Solar Power, Inc. is a vertically integrated solar energy solution provider offering the North American commercial, residential and public sector building markets a complete solution through a single brand. With a state of the art manufacturing facility in Shenzhen, China, Solar Power, Inc. provides turnkey design-build solutions through its Roseville, California headquarters and a growing retail distribution network.

About Solar Power Integrators

Solar Power Integrators' general partner, J.R. Conkey & Associates, is certified as a Disabled Veteran Business Enterprise (DVBE). James Conkey, President, a Vietnam-era disabled veteran, is past California Director for the Association of Service Disabled Veterans (ASDV) in Washington, D.C., and is also a past Treasurer of the California DVBE Alliance. Solar Power, Inc. is a 49% partner, and exclusive provider for solar panels, design, and installation for Solar Power Integrators.

Safe Harbor Statement:

This release contains certain "forward-looking statements" relating to the business of Solar Power, Inc., its subsidiaries and the solar industry, which can be identified by the use of forward looking terminology such as "believes, expects" or similar expressions. The forward looking statements contained in this press release include statements regarding SPI's expected revenue from the project, the targeted completion date for the project, expected revenue guidance for fiscal 2008 and guidance regarding expected profitability in fiscal 2008. These statements involve known and unknown risks and uncertainties that could cause actual results to differ materially, including, but are not limited to, the negotiation and the terms of the formal contract among the parties, unanticipated delays or difficulties encountered in construction of the project, general business conditions, managing growth, and political and other business risk, executing on formal contracts for construction, the possibility that existing orders could be modified or cancelled, the timing and nature of customer orders, risks associated with supply chain management, and cost containment on key product components. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in SPI's reports filed with the Securities and Exchange Commission, including the risk factors set forth in SPI's Current Report on Form 8-K filed on December 3, 2007. SPI 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.

Source: Business Wire

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