The U.S. solar industry just took a great leap forward with eSolar's announcement that its 5-megawatt Sierra SunTower is now fully operational. Located in Lancaster, Calif., the array uses 24,000 mirrors to concentrate sunlight on two 160-foot towers.
The facility is technically a solar thermal plant, meaning that instead of solar cells converting sunlight directly to energy, the light is used to heat water located at the top of the towers. The steam generated turns a traditional steam turbine, which generates power for local utility Southern California Edison. The mirrors track the sun using GPS technology to keep the water heated at a consistent 800 degrees Fahrenheit, producing 800 pounds of steam per square inch.
Solar thermal has the potential to disrupt the solar industry at large, mostly because it's cheaper to execute. After all, mirrors are much more cost-effective than silicon solar cells. eSolar's chief executive even went as far as saying that the project represents "the lowest cost solar project in history," and that the company could power the entire state of California with just 25 square miles of mirrors and towers.
The system devised by eSolar could be good news for consumers too, with the electricity generated costing less than the average homeowner in California usually pays.
The company has already cashed in on its technology, landing a $30 million licensing deal with the Acme Group in India, and a $10 million rights deal with NRG Energy, which has 500 megawatts worth of solar projects already in the works. It also has a partnership with utility PG&E.
Not that eSolar really needs the money -- it's already known for its generous $130 million in capital from Google.org (a tough investor to draft), the prestigious Idealab, Oak Investment Partners, Quercus Trust and NRG.