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Alternative Energy - Monday, September 1, 2008

More Huge Solar Deals: AVA Solar Raises $104M.

Ft. Collins' AVA Solar has raised $104M in 2nd-round funding led by DCM witg Technology Partners, GLG Partners, Bohemian Cos. and return backers Invus. The company plans to use the funds to finish building its first production facility which it says will have the capacity to produce 200 megawatts of thin film photovoltaic modules each year.

AVA's bosses acknowledge that its technology is not unique, however, it boasts that its production methods are. It has in fact filed for patents on production. The patents cover a system whereby multiple, high-speed, automated production lines can mass-produce the solar panels. The startup came out of The Colorado State University's mechanical engineering laboratory. The company is now saying that they got up to a 9 month jump over previous launch plans thanks to a lease agreement with Applied Films that will allow AVA to not have to build a plant from the ground up.

CNN interviews AVA Solar's founder

Meanwhile, over in San Jose AVASolar competitor in the thin film photovoltaic space, Nanosolar, has raised $300M (the round was just disclosed but actually closed in March.) Investors are AES, The Carlyle Group, EDS, Energy Capital Partners, Riverstone Holdings, EDF Renewables, Lone Pine Capital, the Skoll Foundation, Omidyar Network and return backers GLG Partners, Beck Energy, and Grazia Equity. Google's Larry Page and Serge Brin were seed investors. (When you raise this much capital you are bound to have a laundry list of investors.)

Nanosolar started selling panels mid-December 2007, and like AVA Solar plans to get to profitability when it is able to sell them at around $1 per watt.

Nanosolar has gained renown in Silicon Valley for its decision to build its production facility in San Jose. They taut that the annual capacity of 430 megawatts at the facility is enough to roughly triple total American solar cell production, moving the US from third worldwide to second, behind Japan. Nanosolar is also building a manufacturing plant in Berlin.

Nanosolar demos its 1 gigawatt production tool.

Between the two, Nanosolar is the more impressive of the two. Management at Nanosolar has a stronger track record and they are out quicker with product. But from our perspective the solar panel game is a long-term struggle. The companies that can keep costs the lowest and have access to capital to continue to build production will be successful. Both AVASolar and NanoSolar are awash in cash. Let
see who can manage their costs best.

View - Nanosolar site
View - AVAsolar site