Solar Power, Inc. (“SPI”) (OTCBB: SOPW) announced today that it has executed a second supply agreement with Bayer and Raach, a German solar installation company serving the residential and commercial market segments throughout Germany and Southern Europe. The supply agreement calls for SPI to provide 1.5 megawatts of SPI’s 200-watt modules to meet initial-phase requirements for a 5-megawatt system Bayer and Raach is installing in Bavaria. The system will be built in phases over 2009 and 2010, ultimately calling for a total of 5 megawatts of SPI’s 200-watt modules which are top ranked for performance with the California Energy Commission.

“Bayer and Raach have placed orders with us in excess of 3 megawatts so far this year. We look forward to continuing to provide Bayer and Raach with our top performing modules and innovative racking products as they to pursue their business development activities throughout Germany and Southern Europe,” said Bradley Ferrell, President of SPI’s Commercial Sales Division. “This agreement further validates our international business development strategy as we continue to build other relationships with strategic clients similar to Bayer and Raach,” Mr. Ferrell concluded.

Bayer and Raach are engaged in renewable energy consulting, as well as planning and installation of photovoltaic systems. The German company is ideally positioned to sell SPI’s products throughout their European market area which serves Germany, Italy, the Czech Republic and Slovenia. SPI continues to advance its international sales strategy through sales of its top performing modules and proprietary commercial systems, SkyMount^TM and Peaq^TM solar canopies.

About Solar Power, Inc.:

Founded in 2005, Solar Power, Inc. is a vertically integrated solar energy solution provider offering the North American commercial and public sector building markets a complete solution through a single brand. Throughout Europe, Asia and Australia the Company sells its products direct to distributors and turnkey solutions providers. The Company’s Yes! Solar, Inc. subsidiary provides the U.S. small- to mid-sized business and residential market segments with turnkey PV solar systems through a growing dealer network. Solar Power, Inc. operates from its Roseville, California headquarters.

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 the Company’s ability to execute its growth plan and meet revenue and sales estimates, enter into formal long-term supply agreements, and market acceptance of products and services. These statements involve known and unknown risks and uncertainties, including, but are not limited to, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission. The Company 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.