BUSINESS MATTERS

UA-born solar-panel startup makes bright move in Fayetteville

Moving into a new office at the Arkansas Research and Technology Park creates a number of benefits for Fayetteville startup Picasolar.

Now the company, which is essentially in the business of creating more efficient solar panels, has about 3.5 times more space. That includes 1,000 square feet of laboratory.

Instead of sending solar panels on a 4,000-mile, two-week round trip for measurements and other steps in the research process, it can do the work in-house. That should save the University of Arkansas-affiliated company at least $125,000 a year and allow for the addition of employees sooner than later.

And it should be noted, there are now windows. Opportunities to see outdoors were nonexistent in the previous 650- square-foot "headquarters" that Picasolar once called home.

"Now we have natural light," Picasolar's 32-year-old CEO Douglas Hutchings said. "It's a nice morale boost."

Windows notwithstanding, the mood at Picasolar has been positive. Since launching as part of a University of Arkansas business plan competition in 2008, the company has attracted attention and funding from across the country.

Picasolar, if we're breaking this down into the simplest possible terms, has developed a process it believes will increase solar panel efficiency. My explanation doesn't begin to do the process justice, of course.

I'll let the company's official website explain things in a little more detail if you're so inclined: "The Hydrogen Super Emitter (HSE) process increases solar cell conversion efficiency while reducing the number of silver gridlines. This enables a manufacturer to save money through reduced materials use (silver is the second most costly part of cell processing) while increasing the total watts produced (increased efficiency)."

Hutchings, who doesn't seem prone to exaggeration, calls it the "single largest technology leap in solar power in 40 years." Picasolar estimates that its process could save the average solar panel manufacturer up to $120 million annually.

Last month the super emitter used in developing those more efficient panels was recognized as a bronze Edison Award winner in the hydrogen power category. The Edison Awards, named after inventor Thomas Edison, are awarded annually in the interest of "globally recognizing, honoring and fostering innovation and innovators to create a positive impact in the world."

Seth Shumate, who earned his doctorate earlier this month in microelectronics-photonics, was the primary inventor of the super emitter as a UA student. It has a patent pending.

Several major, tangible milestones are ahead for the company in the next few months. And once -- technically, if -- Picasolar figures out how to create full-sized panels, it will begin rapid growth.

Last year brought a capital infusion of $1.2 million, about half of which was raised through private investors and the other half from a matching Arkansas Development Finance Authority grant. Picasolar also was awarded $800,000 from the U.S. Department of Energy as part of a one-year project.

Currently Picasolar has eight employees, including Hutchings and Shumate, who serves as chief technology officer. Hutchings, who earned a doctorate in microelectronics-photonics from the University of Arkansas in 2010, proudly points out that seven of those are UA graduates. As the company grows it figures to continue mining the local university for talent.

That connection to campus is part of what has kept Picasolar in Fayetteville. There have been opportunities to move, but the benefits of staying outweigh anything that might be gained in moving at this time.

Relocation is a frequent question for Hutchings when meeting with potential investors. In fact, he said it's one of the first questions asked by folks on either coast who are considering writing checks.

By staying at the UA and renting equipment on an hourly basis, the company is saving itself a $20 million purchase. Hutchings also figures the state makes sense because it is a major player in logistics and transportation.

"We've fought quite hard to stay here because I think long-term it makes sense for us to be here," Hutchings said. "If we're going to be building and shipping larger pieces of capital equipment all over the world, Arkansas has a pretty good logistics infrastructure."

Moving isn't entirely off the table, but as Hutchings puts it, "it'd be a shame to move the company and then move it back."

SundayMonday Business on 05/24/2015

Upcoming Events