What are the VUCA events that are taking place in the company?

Ongoing researches in the solar power industry.

A New Kind of Solar Panel thats Smart, Stores Energy, and

Even Talks.
Four-year-old startup called SunCulture Solar, led by entrepreneur and inventor Christopher Estes, has
developed something much more unusual and the company unveiled it for the first time on Wednesday
night in the penthouse at The Battery club in downtown San Francisco.

Estes has redesigned the solar panel, integrating batteries into the panel itself, overlaying it with smart
sensors and software and wirelessly linking it to a computing hub and cell phone app. The company's
panels, called SolPads, are supposed to be sold late next year in a system for a rooftop, or as a
standalone panel that can be propped up on a back deck or balcony.

Partly by integrating the batteries inside the panels, SunCulture Solar says it can sell a home rooftop solar
system for half of the cost of currently available solar panel and battery system combos.

Estes, who created the company with his wife Amy Becker Estes, described his new solar panel in an
interview with Fortune earlier this month as "the smartest on the planet." He hopes that rethinking the
panel "will do for the solar industry what smart phones did for the computer industry."

Drones and robots make solar panels more efficient:

Robots are infiltrating warehouses , classrooms , farms , and citystreets . Now, they are making
themselves useful in the renewable energy industry. SunPower Corporation, a solar cell manufacturer
headquartered in Silicon Valley, will use robots and drones to make solar power plants more efficient.

The company is starting construction on its new "Oasis" power plants in North America and China during
the next several weeks. In this new generation of power plants, project design is automated using drones
and software. The drones fly over a site to gather data, and then the software creates and evaluates
thousands of designs and recommends the best options. This way, developers can easily compare
potential sites, and customized configurations can make the most out of the available space.

Tom Werner, president and CEO of SunPower, said in a press announcement:

An Oasis solar power plant may be designed 90 percent faster than the time required to design
conventional solar power plants. While flat, rectangular-shaped sites are required for other trackers on
the market, Oasis can take advantage of unused irregularly shaped areas and slopes up to ten degrees to
generate up to 60 percent more energy than conventional technology installed at the same site. Each
additional ten acres of usable land on a site may represent two to four more megawatts of power, which
can significantly impact a project's bottom line.
The new systems are also being designed with room for agriculture. As solar power becomes widely
accepted, it's not always easy to find space to locate large solar arrays. (This is part of the reason that
floating solar projects are becoming more common around the world.) The distance between rows
leaves just the right amount of room for farming activities, and SunPower is partnering with University of
California, Davis to find the ideal crop varieties.

The big star of Oasis is a fleet of robotic panel cleaners that SunPower added to its toolkit when it
acquired Greenbotics, Inc., in 2013. Solar panels typically convert approximately 20 percent of the sun's
energy into electricity, but if they are dirty, that conversion efficiency is reduced. Dust, pollen, and even
bird droppings can build up on solar panels and block a percentage of the sun's light from entering the
system.

Robots glide over rows of solar panels, gently removing dirt. The robotic system uses 75 percent less
water than manual-cleaning methods and can operate at night to avoid getting in the way of precious
sunlight. According to SunPower, the new robotic method is twice as fast as the current robotic cleaning
technology and 10 times faster than manual cleaning methods.

For residential solar installations, the small amount of grime that builds up on solar panels isn't
significant enough to make it worth frequently climbing on your roof or hiring someone to clean a few
panels. But it's a different story for giant solar power plants, where even small percentages can add up to
many lost megawatts, or in other words, less money.

Meet SolPad, an Integrated Solar-Plus-Storage Solution Fresh

Out of Stealth Mode:
Could this be the comprehensive solar-plus package the
industry has been looking for?
Sometimes solving a problem requires coming at it with an entirely different perspective. That's how
Christopher Estes came to create SolPad -- a potentially disruptive home solar solution that launched
yesterday after several years of quiet development.

Estes is the inventor of a professional audio device called CLASP (Closed Loop Analog Signal Processor)
that allows audio recording experts to seamlessly bridge analog and digital recording techniques. The
technology was launched in 2010 and is still used widely in recording studios.

Today, however, Estes is squarely focused on the clean-energy sector. Estes is currently the CEO and chief
product architect of SunCulture Solar, and the inventor of SolPad -- a first-of-its kind integrated solar-
plus-storage solution designed for the masses.

Each unit features a high-efficiency solar panel, a built-in solid-state battery, an inverter system, and
software that uses gamification to promote sustainable energy use, all contained in a single device.
Traditionally, solar and home energy management devices are bought and installed separately.
With our groundbreaking component miniaturization and integration, weve transformed solar -- much
like the smartphone revolutionized the personal computer sector -- combining numerous components
into a single device thats significantly less expensive, more powerful, and easier to use than
conventional systems, said Estes, who introduced SolPad at an event last night in San Francisco.

The product comes in two versions: SolPad Home, which is designed to deploy on rooftops and power an
entire household, and the SolPad stand-alone panel, which integrates into the home or can be used in
off-grid applications. The products are scheduled to come to market in the second half of 2017.

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The integrated design allows all SolPad products to operate independently. That means customers can
start with just one device and add more over time with minimal installation effort. Mobile SolPads can be
stood up and combined to form a mini-grid with a single cord. SolPad Home installations are built with
SunCultures trademarked Connect system -- a three-pronged piece of equipment that links two or more
SolPad Home panels together without the need for any complicated cabling or wiring.

They just stack together like Legos, said Estes, in an interview at SunCultures Mountain View offices.
Click, click, click.

By simplifying the installation process and the reducing the number of components that need to be
deployed with each install, SolPad Home is estimated to reduce the total cost of installed solar and
energy storage by up to 50 percent when compared to existing product offerings. The savings are
primarily achieved through the integration or elimination of balance-of-system parts and by reducing
soft costs, such as labor.

Estes formed SunCulture in 2012 after attempting to deploy home solar in the Caribbean and finding it
difficult through existing channels. The answer is that there needs to be something that's affordable
and is easy for people to use and...understand, he said. The whole thing needed to be simplified, I
thought. [A friend] threw down the gauntlet and said, Youre an inventor, invent something.

The details

SunCulture developed several different products and components, which were kept under wraps until
this week. A staple product is the SolPad Home, which includes a panel made of 96 cells connected by
diodes, and generates 330 watts of solar power. SolPad Home requires a racking system and the Connect
system to link panels together, but otherwise all of the necessary technology comes built in.

Within every SolPad, there is integrated solar micro-storage that uses solid-state, low-voltage battery
technology. These batteries are designed specifically to be integrated within the panel and deployed
safely on a roof. Unlike standard lithium-ion batteries, solid-state batteries do not have a liquid
electrolyte, which makes them inherently safer and less flammable. SunCulture claims its solid-state
batteries can safely withstand conditions on the roof up to 200 degrees Celsius, plus any other elements.

You can literally take a nail and drive a nail straight through a fully charged solid-state battery and it will
not spark, it will not catch on fire, it will not smoke, it will not heat up, said Estes. That is a fact.

There are two SolPad micro-storage options: a standard 500-watt hour battery and an optional 1-
kilowatt-hour battery. The 1-kilowatt-hour battery can be fully recharged by the sun or the grid in roughly
three hours, while the 500-watt hour battery can be fully recharged in just an hour and a half.

The next component is SunCultures patented flexgrid inverter that allows for bidirectional power flows
and maximum power point tracking. The technology is equipped with rate tariff data and software that
can automatically detect when rates are low and the battery should charge from the grid, and when
rates are high and the system should draw on solar power. In the event of a power outage, flexgrid will
automatically disconnect, forming a small microgrid to power a customers essential loads. The inverter
also senses power voltages between 110 and 240 volts, which means the SolPad can work anywhere in
the world, right out of the box.

Estes and his team also developed the SolControl smart plug that a communicates with any light,
appliance or device connected to the plug. Customers can control these devices through an app.
Similarly, there is the SolControl Breaker, a smart circuit breaker installed at the electrical panel that
communicates with SolPad, allowing customers to control water heaters, dishwashers, HVAC systems, or
an entire room through the SolPad system.

All of this technology communicates seamlessly through SolLink, SunCultures wireless module that
serves as a central hub for the entire system. This information is relayed to the SolControl app that
allows users to manage their connected devices from their smartphone.

The net result is a beautiful, seamless home solar-plus-home-energy-management solution -- the likes of
which Tesla and other companies have been trying to create.

The capabilities SolPad offers do exist on the market today. The distinguishing factor is the level of
integration SunCulture has been able to achieve. SunCulture says SolPad is up to 50 percent cheaper
than competing technologies. By eliminating most of the technology typically installed below the roof,
SunCulture claims that SolPad Home is nearly $20,000 cheaper than a residential solar system with a
microinverter and a premium AC battery.

However, the technology has yet to live up to a real-world test.

Opening new markets

SolPad, the mobile solution from SunCulture, offers the same home energy
management capabilities available with SolPad Home, but in a portable package. The
thin, relatively lightweight form factor means that SolPads can be transported and
used in recreational settings or for humanitarian needs.

Each SolPad has two universal outlets on the back and three fast-charging USB ports
that allow users to plug alliances directly into the panel. Integrating SolPad into the
home simply requires plugging SolPad into an outdoor outlet, and the power will
flow in. To get more power, SolPads can be linked together.

This setup will give renters, and anyone else who cant put solar on their roof, a
meaningful way to participate directly in the solar market. There are roughly 125
million homes in the U.S., but only about 60 million of them are suitable to host solar
on their rooftops.
By connecting the panels to a SolControl smart plug, its possible to see how
apartment-dwellers could direct their solar energy toward the socket powering their
television for emissions-free viewing or decide to solar-power their blender.
Alternatively, the portable SolPads could power an entire homes lighting system just
by positioning the panel in the sun for most of the day. These new uses could
significantly grow solar deployments.

Our culture is one where we flip a light switch [but] dont know where the energy is
coming from, said Emily Kirsch, co-founder and CEO of Powerhouse , who got a
sneak peek at the SolPad last month. With SolPad, not only do consumers have a
choice, but theyre empowered to develop their own experience with energy in a
way theyve never been able to do before.

Estes envisions SolPads will eventually be sold directly to consumers through REI,
Bass Pro and similar outdoor stores. The price point will be low enough for customers
to pay with a credit card and walk out with a panel. SolPad Home, meanwhile, will be
sold through installer partners. For larger SolPad Home projects, installers are
expected to offer financing.

Whats the catch?

The solar industry is just getting to know SunCulture and SolPad following the official
launch last night, but so far the reception has been positive.

I think its aggressive and pretty impressive that theyve been able to do all of that
[technology development] themselves, said Barry Cinnamon, CEO of Spice Solar and
a longtime solar industry installer.

Cinnamon said he is particularly interested in SolPads integrated solar-plus-storage

solution. Soft costs for residential solar are high, but soft costs for residential
storage are even higher, he said. Standalone home battery systems require special
training and inspections to install, which adds to overall cost. The ability to deploy
solar and storage together as a truly turnkey solution makes those soft costs go
away, and thats a tremendous savings, said Cinnamon.

The integration of solar and storage and software is what everyone is talking about
as the future of the industry, said Kirsch. So what struck me most is that SunCulture
built that -- they built what everyone is talking about. The future is actually here and
happening right now.

SunCulture has already patented all of its new technologies, but the startup has yet
to decide on suppliers. Pricing could change significantly with the finalization of
manufacturing partners. The technology also has to prove it's durable enough to
withstand real-world settings.

Its all going to be based on cost, said Cinnamon. Is a complete turnkey SolPad
system going to be cheaper and better than a state-of-the-art rooftop panel with a
battery backup inverter system? Thats the question.

End the bickering

Not only is everything patented, but everything works, Estes insisted.

Indeed, it does. At least in demonstrations.

During a visit to SunCultures offices, Estes lined up three standalone SolPads,

connected them with a roughly two-foot-long white cord and plugged a leaf blower
into the back of the pad, which comes with a socket. The blower powered up and
Estes monitored the systems performance on his iPhone. He then plugged in a hair
dryer and a row of multicolored Philips Hue light bulbs and changed the colors
through the SolPad app with a tap of his finger.

Estes showcased additional features, including the nine LED lights installed at the top
of the portable SolPad that can serve as a bright light source. The SolPad also plays
music and has an anti-theft alarm where the solar panel yells in a womans voice
Help! Someone call the police! Estes clearly decided to have some fun with his
invention.

At the same time, he takes it very seriously. Besides opening up new markets for
residential solar, SolPad could solve some of the policy problems residential solar is
facing with respect to net metering. The goal with SolPad is self-consumption, not to
maximize solar output and push excess generation onto the grid. Utilities across the
country claim excess output is causing grid issues and that the credits customers
receive for that extra generation are unfair to non-solar owners.
Estes sees SolPad as a friend to the grid because it allows customers to better
manage their energy use and consume more within the home, lessening the burden
on the grid. And with energy storage baked in, customers can shift their daytime solar
generation during peak times in the evenings.

We can dictate that there's nothing going to the grid, and then you don't have a net
metering issue anymore, said Estes.

Because customers are consuming all of their solar power on site, we insulate the
customer from potential changes in regulations related to net metering and other
financial tethers, he added. Also, because SolPad claims to be so much cheaper than
existing solar-plus-energy-management solutions, Estes said that customers can
afford to live without the net metering credit.

The bottom line is, we have a climate problem. We have a pollution problem, said
Estes. We have to use whatever we can to accelerate the adoption rate of solar and
storage. All of this bickering and fighting with utilities, we need to...end that. We
need to be the utilities friend.

Above and beyond

SunCulture employs fewer than 50 people. Estes isnt the only employee with a
diverse background. Several members of the team come from the automotive
industry or previously developed military-grade equipment.

The unique origins of SolPads employees have brought a new twist to residential
solar technology. It has also attracted new sources of funding. Estes wouldnt name
his backers, but noted that the company has raised many millions of dollars, much
of it from outside of Silicon Valley.

Kirsch said new approaches and new market participants are needed for solar
adoption to become truly mainstream.

Given how old and fractured the existing energy infrastructure is, I think the
incremental changes that weve made so far have been profound and need to
continue, she said. But weve only gotten to 1 percent of our supply coming from
solar and just over 1 million rooftops in the U.S. that have solar. So I think its going to
take huge leaps above and beyond whats been done before to get us to the point
where solar is the most accessible source of energy in the world in our lifetime, and
[SolPad] is a great example of getting us toward that goal.