Tigo Energy, maker of a device that keeps tabs on solar panels and makes sure they are working at full capacity, has raised $10 million from Inventec Appliances. The two companies have also signed a joint manufacturing and logistics agreement that should expedite the growth of Tigo's manufacturing and sales operations.
While not especially exciting on its own, the investment in Tigo -- which has now raised $27 million -- is significant as part of a larger trend. Investors and corporations alike are increasingly interested in funding makers of solar components, rather than more capital intensive panel manufacturers and plant builders. It's indicative of an even broader trend toward smaller funding rounds in the cleantech sector.
Last week, National Semiconductor, announced the introduction of its new SolarMagic chipset, which can be installed in solar panel junction boxes, to monitor solar arrays and optimize energy output. Also last week, Kleiner Perkins Caufield & Byers joined a $63 million round of capital for Enphase Energy, maker of solar microinverters that accomplish the same task. And STMicroelectronics just debuted its own integrated circuit to up the power generated by arrays.
The watershed of funding in this area is also a sign that more companies are focused on fine-tuning existing solar products, particularly rooftop systems for residential and commercial markets. These chipsets and microinverters prevent one faulty, obstructed or shaded panel from lowering the energy output of whole arrays.
Tigo's device, called the Tigo Energy Maximizer, can increase the output of solar systems by up to 20 percent, according to the company. Like most competing products, it also channels data about how well individual panels are working to a web interface, where system operators can easily view and respond to it.
Based in Los Gatos, Calif., Tigo brought in $6 million in May 2008 from OVP Venture Partners and Matrix Partners.