On December 28, 2001, as part of the CPA's Greening Public Building initiative, the California
Consumer Power and Conservation Financing Authority (CPA) issued a Request for Bid (RFB) for
Decentralized Solar (DS) intending to qualify bidders and their technologies for the:

DS Bid Pool (Turnkey Installation),
Equipment Only category, and
Master Solar DS Contractors (with a plan to select at least two bidders).

It was announced last week that twenty six bidders (out of 28) meet the minimum eligibility
requirements of the California Power Authority Request for Bid.

Fifteen (inverter manufacturers and solar manufacturers and/or suppliers) have been qualified
under the Equipment Bidder list.

With the exception of two bidders (which show price increases), solar module prices submitted
in the Equipment bidder list prices showed average declines of between 2% (crystalline) and 8
per cent (thin film) per annum over the 2002-2005 period. Solar modules on the list are mainly
sourced from USA or Japan. At least one price quotation is dependent upon the Yen/dollar
exchange rate.

Eighteen bidders have been qualified under the Decentralized Solar Bid Pool (DS Bid Pool) list.
Bidding companies that have been included on the DS Bid pool list are eligible to respond to
future Request for Proposals (RFPs) issued by the State or other public entity for DS installation
projects or purchasing contracts. These bidders have agreed to respond to future RFPs using
prices at or below those expressed in their submittal to the CPA.

The types of solar technology offered in the Bid Pool include Single Crystalline, Polycrystalline,
Amorphous Silicon, Copper Indium Gallium Diselinide (CIGS) and Thin Film Cadmium Telluride
(CdTe).

The CPA advised that the lowest cost bid is 17 cents per kWh in 2002 and 16 per kWh cents in
2003. This is indicative pricing in the near-term before seeking competitive pricing or factoring in
"buy-downs" from State incentive programs, tax credits, or depreciation effects if equipment
were owned by private parties or leased back to public facilities. These prices are not
necessarily indicative of the pricing offered under the Master DS Contractor category (where
some commitment of volume/installation is anticipated).

There are 15 eligible bidders in the DS Bid Pool competing for at least two Master Agreements to
supply cost-effective solar systems to public entities through the CPA's Greening Public Buildings
Initiative. On the table are potentially two or more multi year contracts and 80 Megawatts of
total demand over four years.

These upcoming contracts are intended to serve as much aggregated volume for solar
installations for state, local and federal Government facilities as can be determined and
negotiated by the CPA.

The CPA and its advisors hope to complete its assessment of Master DS Contract bidders within
30 days. Once sufficient information is available on expected procurement volume, negotiations
will be conducted with the leading contractors and an announcement of selected Master DS
Contractors will be issued as soon thereafter as possible.

source: SolarBuzz 2002.4.29