New CEO says Solaria now shipping solar panels

Dan Shugar took over as CEO of Fremont, Calif.-based Solaria today as the company announced its move into commercial sales after years of product development.

Shugar told the Cleantech Group that Solaria began shipping its concentrated solar panels to customers in the last quarter of 2009. The company has 40 megawatts of peak production capacity around the globe, including at its Fremont headquarters.

"The company was keeping a low profile because it was very, very focused on developing this product," Shugar said. "Now the product has been commercialized and is basically available for sale, we're talking a lot about the technology, we will be participating in industry events, and we are really developing a lot of channel partners that can employ the technology at customer sites."

Solaria developed proprietary cell multiplication technology, which reduces the amount of solar cells needed by half compared to traditional solar PV.

The company cuts solar cells into strips, using plastic casing and a durable lens to focus the light on the cell to increase the power generation. The technology uses the same materials and dimensions as conventional modules, allowing for a drop-in technology that meets customers’ expectations, Shugar said.

Shugar joins Solaria after three years as president of SunPower’s systems unit—a role he took after the solar giant acquired PowerLight, where Shugar was president for 10 years. The news comes just a few days after Boston startup Mascoma named Bill Brady, formerly of chemical maker Cabot, as the CEO to replace Bruce Jamerson, who has joined Frontier Renewable Resources.

Former Solaria CEO Suvi Sharma is staying on as president and a member of the company’s board of directors to focus on business development and strategy.

Shugar said his years at PowerLight and SunPower were focused on manufacturing systems and building large projects—giving him insight into what customers want from solar panel makers, he said.

"The largest issue over my career has been obtaining supply," Shugar said. "Every cell we work with, we’re essentially doubling the capacity. Down the road, we’ll be able to triple the capacity."

Another key issue is driving down costs. Shugar says Solaria's technology ultimately reduces the need for polysilicon, which makes up about 20 percent of a solar cell's cost. And although silicon prices have dropped during the past year, Solaria's technology also provides the same advantage in reducing the number of ingots and wafers that must be produced.

"If silicon is more expensive we look even better because we take that most expensive component and double it," he said. "Even if silicon were free, we'd have an amazing cost proposition."

Solaria is continuing product development for the third-generation product, but Shugar declined to share a timeline for its release. The aim for that product is to cut the solar cells needed to just a third of traditional photovoltaic panels.

In February, Solaria said its CMT-190W, -200W and -210W solar modules received International Electrotechnical Commission product certification from German testing laboratory TÜV SÜD, enabling it to target the European market.

Shugar said Solaria is now pursuing certification from Underwriters Laboratories for the second-generation product, which is now in production, in order to sell to the U.S. market. He expects to receive approval this quarter.

Shugar said the major markets for Solaria are in North America and Europe, with customers in the utility, commercial and industrial sectors.

Shugar declined to say where the company’s production facilities are outsid eof Fremont, but he said the company has shelved its plans to manufacture in the Philippines. Solaria isn’t yet using all its production capacity but plans to expand according to customer demand, he said.

Shugar declined to comment on recent reports that the company was raising a Series D round (see Investors prep for spending spree with $4.1B in new funds). Solaria has raised $77 million in three rounds from investors including Q-Cells, NGEN Partners, Sigma Partners, and Moser Baer (see $3.5 billion Solaraia cell supply deal).

Solaria’s deal with Q-Cells also gave it access to 1.35 gigawatts of photovoltaic cells, which Solaria plans to use to produce 2.7 GW of solar panels during the next 10 years.

Shugar declined to reveal the number of employees at Solaria, which was founded in 1999.