Solar Power in supply agreement with Motech

Roseville, Calif.-based Solar Power Inc. (OTC: SOPW) announced a supply agreement with Taiwan's Motech Solar for 2008, and said the two are in talks for a long term supply contract.

Solar Power said Motech would supply 11 megawatts of 6 inch multi-crystalline photovoltaic cells. Solar Power plans to use the cells for the production of solar modules at the company's factory in Shenzhen, China.

"Our arrangement with Motech is significant, as they are the recognized world leader in the production of the highest quality mono and multi-crystalline PV cells," said Steve Kircher, CEO of Solar Power.

Solar Power said that to date, Motech has been a primary supplier of cells for the company.

"For us this is further indication of the growing U.S. market and demand for photovoltaic products as the adoption of solar energy in all market segments gains momentum across the United States," said Simon Tsuo, CEO of Motech Solar."

The new agreement provides Solar Power with an additional supply of cells to meet its anticipated production requirements of 200 watt panels during 2008.

Solar Power also announced a new non-penetrating roof mounting and racking system. The company said its SkyMount system eliminates problems associated with roof penetrations, reduces material costs, and is designed to reduce the installation labor cost by reducing the time required for installation.

The company expects to release the mounting system during the first quarter of 2008.