Perovskites are a naturally-occurring nanomaterial that’s shaped like a crystal. The mineral holds massive promise for solar glass production to optimize the process in terms of both increased energy generation and cost, serving as a likely key to a renewable future. Caelux is a Pasadena-based company that has pioneered the process of using these perovskites in solar production. Working with solar module companies, the company treats solar glass with a thin film of perovskites so that it can convert sunlight to electricity, absorbing more of the sun’s spectrum than conventional methods that are less tolerable of imperfection in materials used, leading to degradation over time. Caelux’s proprietary technology has the potential to power the renewable conversion at scale, at a reasonable cost, ushering in a future without carbon-dependent energy. The company is currently building its manufacturing facility and plans its initial public product launch early next year.
LA TechWatch caught up with Caelux CEO Scott Graybeal to learn more about the business, the company’s strategic plans, latest round of funding, and much, much more…
Who were your investors and how much did you raise?
This Series A3 funding round raised $12M–this investment brings Caelux’s total Series A funding to $24M.
This round was led by Temasek, and included participation from other key investors including Reliance New Energy Limited, Khosla Ventures, Mitsui Fudosan, and Fine Structure Ventures.
Tell us about your product or service.
Caelux is a pioneer in utilizing perovskites to make solar energy more powerful and cost-effective, enabling the next generation of solar innovation. Our advancements in perovskite technology are helping to create more near-term solutions to climate and solar issues, allowing for imminent deployment at scale.
Our direct customers are solar module companies. We consign glass from these manufacturers and transform the glass into a set of powerful, yet low-cost solar cells by depositing a thin film material stack no thicker than 1/100th a human hair. The glass is now a ‘perovskite sub-module’ that is now able to convert sunlight into electricity.
But it is not a solar ‘panel’ yet. It is still missing the electrical connections, framing and the complementary silicon solar cells needed for the fully realized module.
We package and ship the sub-modules to our customers who then integrate it into their traditional silicon module much like any piece of solar glass. The sub-module is connected passively and in parallel to the customer’s module architecture. Because of this parallel connection, we do not have to worry about current matching, which remains a significant challenge for devices where the perovskite film is deposited directly on silicon cells.
Because the sub-module and the customer’s cells are in parallel, the voltages are matched and the current from the two layers add. Perovskites are great at absorbing high energy light, silicon lower energy light. Together more of the sun’s spectrum is absorbed.
What inspired the start of Caelux?
The company started with one ambition: making traditional solar more powerful and cost less. John Iannelli, our founder, had started this journey looking at different architectures and chemistries, but had been following advancements in perovskites. Six years ago, we shifted the company’s focus to only develop perovskites and recruited world-class talent to build our foundation for innovation.
How is it different?
Cost is a barrier to entry for many would-be solar adopters–making affordable, powerful solutions relative to the enhancement delivered key to broad implementation is key for us. We make solar energy more powerful and more cost-effective. That, combined with seamless integration and compatibility across the spectrum of silicon solar technologies, sets us apart from others in the space and makes sector maturation possible. From both a technical and a chemical standpoint of perovskites, our company has a competitive edge.
Secondly, instead of competing with crystalline silicon solar companies, we work with them. This supports the ultimate goal of creating “bankable” products because we work with global leaders module manufacturing and reliability.
What market you are targeting and how big is it?
The addressable market for Caelux is $18BN today; by 2030 it will be $30BN
What’s your business model?
We are 100% focused on becoming the best in the world at coating perovskites on glass– that is why we are not a solar module company or distracted by building both wafers and perovskite cells. Building reliable modules is much harder than many think (we know from first-hand experience at other companies). Doing one hard thing versus two hard things simultaneously at an early stage makes more sense to us. For the time being, focusing on perovskite sub-modules is key to our future success.
Instead of competing with solar module companies, we partner with them. The top 20 module manufacturers produce about 80% of the world’s solar panels- we think it is best to work with them and not against them.
We sell at a price point that ensures that the module company’s cost per watt is relatively unchanged, but now they can sell a much more powerful product – 20 to 30% more powerful. Likewise, because of the cost and power improvement, those building large solar projects see a substantial improvement in their economics and homeowners have smaller, more powerful solar arrays on their rooftops.
In short, we win, module companies win, solar project developers & installers win, consumers win.
How are you preparing for a potential economic slowdown?
While the risk of recession is diminishing, we always need to be on guard for slowdowns. But even at the height of macro-economic concerns, the solar forecast continued to climb.
We have an experienced leadership team that has been through many economic cycles (post-911, the Great Recession, COVID) so we understand the importance of supply chain diversification, cost controls, sound cash management policies and contingency planning. We have many scenarios with associated actions outlined and ready for implementation should clouds form on the horizon.
What was the funding process like?
We had the opportunity to work with Tier 1 investors. While the technical & scientific diligence of the process is critical, getting to know these talented men and women during the due process was the most fun. Everyone had a different background and perspective but finding that we shared the same vision was rewarding to say the least. Everyone worked very hard on this raise; we are grateful to have such amazing investment partners around the table.
What are the biggest challenges that you faced while raising capital?
Very different from the early 2000’s where solar was coming into its own and there were many technical avenues being explored. Money was much more free-flowing, and some ideas were not ultimately viable. The industry and investors have learned a lot from those experiences. In 2023, the level of technical scrutiny is very high, and investors are rightfully cautious. We were vetted by the best minds in PV today–both commercially and technically– and, fortunately, Caelux passed the test. It was a rigorous and highly transparent process.
Very different from the early 2000’s where solar was coming into its own and there were many technical avenues being explored. Money was much more free-flowing, and some ideas were not ultimately viable. The industry and investors have learned a lot from those experiences. In 2023, the level of technical scrutiny is very high, and investors are rightfully cautious. We were vetted by the best minds in PV today–both commercially and technically– and, fortunately, Caelux passed the test. It was a rigorous and highly transparent process.
What factors about your business led your investors to write the check?
Business model & vision
Technology & progress to date
The Caelux team
What are the milestones you plan to achieve in the next six months?
To bring Caelux’s innovation to market, we are currently building a manufacturing facility in Baldwin Park, California, where we are ramping up to reach our minimum viable product launch early in 2024.
We are also expanding our leadership, technology, and operations team with new key hires to help propel the company growth strategy.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Some investors will not ‘get’ what you are trying to do; that’s ok- if you have a strong sense of mission and what your product is, be confident and determined– someone will understand. With that said, the idea needs to have merit: based on good science, large market opportunities and the potential for transformation.
At the same time, solicit and push hard for feedback from both your wins and losses; try your best to learn from the pitches that did not go well or that investors turned down. Even your successful pitches and diligence meetings are opportunities for growth– no engagement is 100%.
Where do you see the company going now over the near term?
Our full-release product, Caelux™ One will be a major step forward in realizing the industry goal of greater than 30% efficient commercial tandem solar modules while meeting market requirements for durability. The advancements in scalability, efficiency, and reliability will lead to lower installation costs for developers and installers, increased revenue for module makers, and better returns at the project level by delivering more green energy at a lower cost compared to traditional crystalline silicon modules.
What’s your favorite outdoor activity in LA?
Outside of work, one of the things I love to do in LA is go hiking with my family all over the area from the beaches to the San Gabriel Mountains, but my favorite is the hike to the Griffith Park Observatory. I loved that place as a kid growing up in the Valley and love it even more today– it’s one the most scenic vistas in the area, plus the payoff of one of the most beautiful buildings in the city at the peak. My wife, younger daughter, and I also love to go to concerts at SoFi, the Greek, and Hollywood Bowl.
