News

Sun Power For the Rest of Us-One startup is finally making solar panels affordable.

Solar panels are still a rarity in most communities in the United States. You might ask, why are there so few? But given the true economics of solar power today, it makes more sense to ask, why are there so many?

By Rafe Needleman Business 2.0

No question, there are important — but highly localized — environmental benefits that come from installing a solar electric system in your house. But the panels are prohibitively expensive for most people; it makes no sense to shell out the bucks if you already have a reliable electrical system in place. A system to power a full house might cost upwards of $50,000. Most solar systems generate less power than a whole house needs and thus cost less, yet even still, solar electricity is very expensive.

The economics of solar systems are helped a bit by two things: First, government subsidies can drop out-of-pocket costs for a system dramatically, as much as half in some areas. Second, thanks to the Public Utility Regulatory Policies Act (PURPA) of 1978, power companies must purchase power you generate but don’t use. With these boosts, solar power systems can eventually pay back their owners, although the payback period is on the order of 5 to 12 years.

These economics might be changing. While traditional solar technology keeps getting more efficient, the cost of the silicon semiconductor technology that underpins traditional systems keeps costs high. But silicon is not the only semiconductor that can transform sunshine into electric current. A startup, Konarka, uses titanium dioxide powder (more commonly used as white pigment) instead. TiO2 is photovoltaic — it turns photons (light) into electrons (electricity). Konarka dyes the TiO2 dark, so it will absorb more light, and melds the powder into a uniform substance that conducts electricity. (The powder by itself does not.)

Konarka’s trick is its low-temperature manufacturing technology that allows its material to be applied to a flexible surface. Photovoltaic materials typically require high temperatures to bond to a mounting material, which limits their bases to glass or metal. Konarka’s product can be applied to rolls of soft plastic. The material is not as efficient as a silicon-based solar cell, but it is a lot less expensive — the material is made in old, cheap photographic film manufacturing plants.

FAST FACTS

Konarka

http://www.konarkatech.com

CEO
Bill Beckenbaugh

HQ
Lowell, Mass.

FOUNDED
June 2001

EMPLOYEES
25

FUNDING
$14 million in two venture rounds

PROFITABLE?
No, projections not disclosed

MARKET
Solar energy technology

That helps make solar more feasible economically by reducing Konarka’s reliance on financial crutches. Given the troubles that have beset the U.S. power grid from time to time, I find it reassuring that startups are working to fill in the gaps.

Sorry, we couldn't find any posts. Please try a different search.

Leave a Comment

You must be logged in to post a comment.