When it comes to the solar industry, the holy grail is achieving "grid parity” -- or being able to generate electricity with solar energy at the same cost as by burning fossil fuels.
While the industry isn’t quite there, it’s getting close, John Baumstark, CEO of Suniva Inc. told a gathering of tech entrepreneurs and investors at the ATDC Entrepreneurial Showcase on Wednesday.
Baumstark should know. He steers a Georgia Tech startup that claims to have a lower-cost way to make solar cells.
Suniva, which developed technology to make solar cells that can transform more of the sun’s energy into the juice that powers today’s plugged-in world, has racked up $1 billion in orders from Indian and European solar module makers.
In a high-profile deal in March, Suniva inked a deal worth “tens of millions of dollars” to supply solar cells to Aerotropolis Atlanta -- a planned 130-acre mixed-use redevelopment of the former Hapeville Ford plant.
“Solar has gotten a knock about cost,” Baumstark said.
In about 25 percent of the U.S. today, solar energy-fueled electricity “costs about the same as producing electricity from the local utility,” Baumstark said, waving a Suniva cell.
“By the end of the year, “ he said, “based on price drops we’ve seen, half the country will be at grid parity.”
Suniva’s cell’s sell for $6 today -- down from about $12 a year ago.
“I think it’s wonderful for the industry,” Baumstark said. “It makes it interesting running a company in that type of an environment.”
In addition to buzz, Suniva has raised lost of capital -- about $50 million last year -- and an adviser team of industry stars.
PM Pai, former chief operating office of Silicon Valley-based SunPower Corp., has joined the Suniva’s board. Also on Suniva’s board is Kedar Gupta, co-founder and former CEO of GT Solar,
“These guys have helped open doors for us,” Baumstark said.
The Suniva CEO left the gathering at the Biltmore hotel with some well-worn advice.
“Cash is king in this environment,” Baumstark said. “You have to raise the money and you’ve got to be really careful how you spend it.”
Differentiation is key -- when fundraising, Baumstark suggested.
“Before you go in for money, be sure that you’re going out and talking about is different,” he said. “If you can’t articulate how you’re different, how you’re better or how you can beat somebody else out there, they’re not going to fund you."
http://www.bizjournals.com/albuquerque/stories/2009/04/27/daily41.html
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