Solaria raises $22M to lower cost of solar cell manufacturing

The funding comes from Q-Cells, the second largest producer of silicon solar cells, venture capital firms Sigma Partners and NGEN Partners, and Moser Baer, a large Indian manufacturer of CDs and DVDs.

Solaria’s emergence is significant because it wants to solve the solar industry’s biggest bottleneck: a severe shortage of silicon available to produce solar cells. Solaria’s timing is perfect. Through serendipity, it began working a way to produce more PV modules from the same amount of silicon back in 2003, before the silicon shortage began. Solaria uses standard solar chips, and unlike other players competing in the “concentration” area does not require its cells to “track,” or rotate to follow the sun. Silicon costs between $75 and $80 per kilogram for long-term contracts, which compares to just $26 per kg three years ago. If Solaria hits the market as planned by next year, and prices stay high, it is bound to have a thriving market.