This story was originally published on June 26, 2007.
A startup that claims to have developed an alternative to the traditional materials used in solar panels and other such equipment has raised $15 million in series B funding, the company announced Tuesday. Lightspeed Venture Partners and General Catalyst Partners led the round for Menlo Park, California-based Stion, which hopes to market thin-film solar modules that use its proprietary material to convert solar radiation to electricity. Existing investors Khosla Ventures, Braenar Energy Ventures, and Moser Baer Photovoltaic also participated in the funding.
More than 90 percent of solar power is produced using silicon products in larger conventional solar panels and smaller thin-film cells. The worldwide shortage of silicon has made companies in the highly competitive market search for alternatives, such as cadmium telluride (CdTe) and the combination of copper, indium, gallium, and selenium (CIGS). The problem with CdTe is its toxicity. The limited availability of indium is a stumbling block for CIGS.
"We use a proprietary material that nobody else is using. It’s not silicon and it’s not cadmium telluride. At this point we’re not disclosing what it is," said Frank Yang, the company’s business development manager. Mr. Yang said Stion has patents pending for its technology, hence the secrecy.
Stion doesn’t have a commercial product yet, but with the new influx of funds, it hopes to get its modules on the market in two years. It claims the modules will be cheaper to produce and more effective to use than existing modules.
"Our long-term view is to make solar electricity competitive with grid electricity," said Mr. Yang. At this point solar electricity is two to three times more expensive than conventional electricity.
Stion, then named NStructures, was founded in 2006. The company raised $6.6 million in its A round a year ago. It currently has 19 employees but is hiring more staff with the B round funds.