Petaluma solar startup Enphase snares its biggest deal

<p>Petaluma solar startup Enphase Energy scored a deal Monday to supply its technology to one of the nation’s leading solar installers, Akeena Solar Inc., under an agreement that could be worth up to $20 million. </p><p>“It’s pretty big for us,” Enphase co-founder Raghu Belur said Monday. “We’re thrilled about it.” </p><p>Akeena will buy up to 100,000 Enphase solar microinverters over the next two years as it rolls out a next-generation AC solar energy system for residential and commercial customers. </p><p>While neither side would place a dollar value on the deal, it could be worth $20 million based on the $200 cost of an Enphase microinverter. </p><p>Enphase microinverters maximize energy production from individual solar panels, increasing output from 5 to 25 percent, the company said. </p><p>They will be used in Akeena’s new Andalay AC solar power system, Akeena CEO Barry Cinnamon said Monday. The system generates ordinary AC household current instead of high-voltage DC power. </p><p>The system will be more efficient and cost less to install than conventional DC panels, Cinnamon said. </p><p>"We can dramatically simplify the design and installation of a rooftop solar system with standardized AC solar panels," he said. </p><p>Akeena chose Enphase microinverters because of their reliability and fit, Cinnamon said.</p><p>“It’s a really good match with Andalay’s installation technology,” he said. </p><p>Akeena installed 30,000 solar panels last year, so installations could easily go beyond 100,000 over the next two years, Cinnamon said. </p><p>Enphase was founded by a pair of Telecom Valley engineers in 2006 and started shipping its microinverters last year. The technology is an improvement over centralized inverters that convert energy from multiple panels, according to Belur. </p><p>With a centralized inverter, a single low-performing panel limits the energy output of the entire system, he said. Enphase microinverters maximize output from each panel and save on installation costs because they use simpler wiring, the company said. </p><p>The converters also transmit energy data to a Web site where customers can see how their systems are performing and make adjustments. </p><p>While Enphase has seen thousands of its microinverters deployed in solar arrays around the world, Monday’s deal with Akeena is the largest in its brief history, Belur said. </p><p>The 60-employee startup raised $21.5 million in venture capital in 2008. Growth could push Enphase to 80 employees over the next year, Belur said. </p><p>Los Gatos-based Akeena is one of the nation’s largest solar installers, with $40 million in sales last year. But it’s been hit by the economic downturn, along with the rest of the solar industry. </p><p>In December, Akeena said it would grow 25 to 30 percent in 2008 — down from a forecast 30 to 40 percent — as several large commercial projects were delayed.</p>