SolFocus, maker of concentrating solar systems, announced today that it has added $30.6 million to its open third round of funding, bringing its total to $77.6 million. The Mountain View, Calif. company says it will use the funds to commercialize its unique solar architecture, which already exists in small pilot mode.
Concentrating solar has picked up momentum recently, with more companies catching onto its benefits. In concentrating systems, glass reflectors are used to concentrate sunlight onto solar cells -- just like you can with a magnifying glass, only up to 650 times -- upping their energy output. This sounds like a pretty good plan, but the technology comes with a hefty price tag. The real expense are the solar cells themselves, made out of gallium-arsenide instead of the standard crystalline silicon. SolFocus says the gallium cells are capable of pumping out as much as twice the energy as their silicon cousins.
Companies like SolFocus argue that concentrating systems are so productive and efficient that not as many expensive cells are needed to begin with. But with silicon prices dropping rapidly, consumers are not as desperate for ways to skimp. This could hurt SolFocus' business in the short-term, ironically even more so if the economy rebounds and more potential customers can afford to go with silicon. After all, SolFocus buys the cells itself from a third-party before assembling its concentrating systems.
Right now, the company has a factory in Mesa, Ariz. that produces 30-megawatts worth of glass reflectors every year. That's not that high a figure, considering that one megawatt powers roughly 800 homes. SolFocus is hoping to expand this reach by a lot, and the new financing should help. As part of this plan, it landed a deal with Grecian solar developer Samaras Group in March to provide 10-megawatts worth of equipment. It has another 10-megawatt deal in the hopper with EMPE Solar based in Spain. Last year, it provided reflectors for a 500-kilowatt project in Spain and for a 7.2-kilowatt system in San Francisco.
The recent round of funding brought SolFocus' total capital raised to $170 million. This may seem like a substantial chunk of change, but it's generally not enough for the large capital expenditures that would make the company a major commercial force. That being said, it is moving quickly and has already started bringing in steady revenue, which could attract helpful government support in the coming months.
Apex Venture Partners led the $30 million extension, which included New Enterprise Associates, NGEN, Yellowstone Capital and Demeter Ventures.