SunPower has said that it has entered into long-term supply contracts with new solar entrant NorSun AS, which will see SunPower purchase silicon in ingot and potentially wafer form to the tune of up to two gigawatts of solar cell production. In return, NorSun will buy polysilicon from SunPower at fixed annual volumes and prices. NorSun will provide SunPower cash advance payments for the polysilicon under this agreement. “The NorSun agreements link our existing long-term polysilicon supply agreements and the expansion of our high-efficiency solar cell production at Fab 2 and Fab 3,” said PM Pai, Chief Operations Officer at SunPower Corp. “By securing a large, long-term source of raw material, SunPower expects to achieve economies of scale that will contribute to our goal to reduce installed solar system costs by 50 percent by 2012. With this new agreement, NorSun, a strong new entrant into the solar market, will quickly scale its ingot and wafer manufacturing capacity in its new Ardal, Norway facility, diversifying our supply chain.”
Under both agreements, delivery begins in 2007 and continues through 2019.