Venture Beat is reporting that Freemont, Calif. based Sierra Solar raised $40 million to continue developing its thin film solar technology.
Sierra Solar thinks it can get its costs down to the point where its technology will only cost $1 a watt, which is the figure needed to compete with traditional sources of energy. It will do this by manufacturing its cells in China, which ought to cost less money.
Sierra Solar is riding the wave of VC funding for solar companies. Last year the top four venture capital backed companies were solar companies. For all of 2008, clean tech companies raised $5.8 billion dollars in the U.S., and solar led the way.
No word on who led the round for Sierra, but previous investors include GSR Ventures and Dragontech.