CEFC joins Cannon-Brookes in funding round for Aussie solar innovator

The federal government’s green bank has thrown its weight behind Australian solar innovator SunDrive, joining investors including tech billionaire Mike Cannon-Brookes in a $21 million funding round.

The Clean Energy Finance Corporation led the Series A round alongside Main Sequence Ventures, with a $7 million investment made through the Innovation Fund, managed by Virescent Ventures.

The raise has also attracted the support of private companies including Blackbird Ventures and Grok Ventures, the investment arm of Cannon-Brookes and his family.

A new breed of solar cells

SunDrive, a company spun out of the University of New South Wales, is behind a new breed of solar cells that uses copper as the conductive material instead of silver, to improve panel efficiency and cut costs.

The concept was originally developed by SunDrive CEO Vince Allen during his PhD at UNSW. Allen then went on to found SunDrive in 2015 with his flatmate from his undergraduate studies, David Hu.

In September of 2021, SunDrive’s technology claimed a world record of 25.54 per cent for commercial-size silicon solar cell efficiency, overtaking the previous record held by China solar giant Longi. In March, the company notched up second solar cell efficiency record of 26.07 per cent.

At around the same time, SunDrive produced its first full sized solar panel, and started working on plans to target the residential solar market, first, before moving into commercial and utility-scale supply.

The 30-30-30 target

The pursuit of ultra low cost solar is on the federal government’s radar, with Labor committing $45 million towards the push to cheaper and more efficient technologies in its first month after winning the May 2022 election.

The near-term goal is to improve solar PV cell efficiency to 30 per cent and reduce the cost of installation of solar modules to 30 cents a watt by 2030.

CEFC chief Ian Learmonth says SunDrive’s technology continues a long tradition by Australian researchers in leading the industry-wide race to make solar more affordable. For Australia, a big part of this goal will include setting up supply chains and manufacturing onshore.

“Solar power represents one of the most efficient ways to reduce emissions from the energy sector and fill the gap in supply from the retirement of coal-fired power stations,” Learmonth said on Thursday.

“[The SunDrive technology] has the potential to revolutionise the onshore production of solar cells and the development of an Australian solar manufacturing industry.

“Improving sovereign manufacturing capability will increase Australia’s resilience to supply chain disruptions and further enable the uptake of solar PV,” Learmonth said.

Working with “deep tech” investors

“The solar cells needed to decarbonise the world will need to be more efficient, cheaper and scalable than they are today,” says SunDrive’s Allen.

“The use of silver is the common denominator and is holding back the rapid advancements needed to transition to a solar powered electric world.

“Australia has arguably made the greatest scientific contribution to the development of solar technology, having invented the technology behind 90% of all solar panels made worldwide,” Allen said.

“SunDrive is thrilled to now be working with Australia’s top deep tech and cleantech investors in developing next generational solar technologies.”