Suniva, one of the many silicon solar cell makers racing for higher and higher conversion efficiencies, just got the boost it needs to potentially leave its competition in the dust: a $141 million loan guarantee from the U.S. Department of Energy.
This is the third time the DOE has handed out a massive guarantee to a solar company. The first recipient was cylindrical solar module maker Solyndra, landing $535 million, which has since kicked its manufacturing plans into overdrive and filed to go public. The second was solar thermal contender BrightSource Energy, for $1.37 billion, which has launched massive development plans for the Mojave Desert in California. Clearly, the stimulus money has the power to transform.
As it stands, government intervention seems to be the only way for large, capital-intensive green companies to survive. Proving that a high-efficiency solar cell works is something, scaling it up to thousands of megawatts for use by utilities is something else entirely. Most solar companies, in particular, with costs extending into the hundreds of millions if not billions, can't bridge this chasm with private investment alone.
Suniva plans to use the loan guarantee to build a solar cell manufacturing facility in Michigan. The plant could employ more than 500 permanent jobs and 2,000 temporary or construction jobs. This makes it an ideal candidate for government funding, considering that the stimulus money is intended to stimulate the green collar economy and job market, not just innovation.
Like SunPower, SolFocus, First Solar, and other solar companies, Suniva is striving to develop solar cells that generate more usable energy while requiring less pricey silicon. The company is reporting efficiency rates up to 20 percent under lab conditions. SunPower, the company leading the efficiency game, is consistently hitting sunlight-to-electricity conversion rates of 20 percent and higher in real-life conditions.
Suniva has also done pretty well raising private capital. It has brought in more than $375 million, including a $50 million second round in 2008, and a $75 million third round last July from Warburg Pincus, Apex Venture Partners, HIG Ventures, New Enterprise Associates and Advanced Equities.