Enphase to launch device for generating AC from solar panels

Solar energy technology company Enphase Energy has announced this week that it has raised $6.5m in funding for its solar energy micro-inverter technology.

The system, which is due to be launched in the second quarter of this year, changes the way that energy is converted from solar panels. Traditionally, solar panels produce DC energy, which is then connected to a central DC/AC inverter housed in a building. The inverter converts the DC electricity into AC, which can then be used to power appliances and lighting. The Enphase Energy micro-inverters convert the energy at the solar panel, eliminating the need for a centralised inverter.

"One limitation of a centralised inverter system is that it will only operate as well as its weakest solar panel," said president and CEO Paul Nahi. "All the DC connections are serial. It's like having water flowing through a hose that you then squeeze in one area. The water can only flow as fast as that one point in the hose."

The company, which hopes to produce many thousands of the micro-inverter units this year, solves that problem by converting electricity to AC at the source, said Nahi.

It will also use broadband connections in homes and businesses to transmit data from the micro-inverters back to the company's central servers. The firm will then monitor solar panel performance and inform users if a panel is under-performing, which could happen if it becomes shaded by growing foliage, for example. "We will alert you to any deviation from peak performance," said Nahi.

The company will use the money, which comes from a funding round led by Third Point Ventures, to get up to volume production. It will initially target business and residential customers in North America, but hopes to move into Europe by 2008.