Over the past few years, new solar start-ups with names like Miasole, Solaria, Solfocus and Nanosolar have emerged to stake a claim for their spot in the sun.
Wake-up call
It didn't take long for the giants to wake up. Following SunPower's initial public offering in 2006 and Applied Materials' announcement that same year to sell its equipment to solar-panel makers, others followed.
Intel spun off SpectraWatt in June, saying it had been planning the move for three years. Hewlett-Packard licensed light-bending technology to Xtreme Energetics, a Livermore start-up working to improve solar-cell efficiency. And National Semiconductor recently unveiled Solar Magic, a chip-set product that it says will improve panel efficiency, especially when they are in the shade or get dirty.
Some smaller solar ventures welcome the big companies.
"It's fantastic to see heavyweights such as Intel and Applied Materials getting into the solar marketplace," said Conrad Burke, CEO of Innovalight in Sunnyvale. His start-up makes thin-film solar panels using silicon ink. And, as its Web site proudly notes, its scientists and engineers have worked at Intel, Novellus and HP Labs. Sharma said Solaria got its "key talent" from chip companies, too.
"This sector is so wide open, still with enormous growth potential," Burke said. "It is way, way too early to call any winners."
'Just tourists'
But the CEO of another VC-backed solar start-up, Nanosolar in San Jose, fairly bristles at the notion that old-line Silicon Valley players have some advantage.
Martin Roscheisen calls many of these big companies "just tourists in solar."
Nanosolar shipped its first solar panel in late 2007. It prints thin-film solar panels and recently showed off a $1.65 million machine that can produce 1 gigawatt of solar cells a year, enough to power 750,000 homes.
Roscheisen isn't convinced that big companies have that many advantages over start-ups.
"They are not as laser-focused as we are," said Roscheisen. While he'll concede that an Intel or an HP has more money than Nanosolar, "it's all about the amount of innovation dollars actually concentrated on solar that matters."
Applied Materials works with both start-ups and big players, said Mark Pinto, its senior vice president and chief technology officer. In fact, SunPower is one of Applied's customers.
"It's not obvious who are going to be the global leaders of this or what even the value chain is going to look like," Pinto said.
His comment echoes remarks by SunPower's Werner.
"I think people will keep coming into this until they conclude that they can't make money."
Contact Matt Nauman at mnauman@mercurynews.com or (408) 920-5701.
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