eSolar, whose large-scale solar power facilities are designed to rival coal-powered plants, has closed on $130 million in funding from Idealab, Oak Investment Partners, and Google.org, the company said Monday.

The Pasadena, California, company, which competes against companies like Ausra (backed by Khosla Ventures) and SolarReserve (funded by United Technologies), plans to build a demonstration facility at an undisclosed location in Southern California later this year, said Rob Rogan, eSolar's executive vice president, corporate development.

"We believe we've cut the cost of solar energy in half," he said, without providing a firm cost per kilowatt hour. "eSolar believes we'll be competitive with fossil fuels.

eSolar plans to use prefabricated modules manufactured oversea to cut the cost of building a solar power plant and allow utilities to build them closer to the cities that will draw their current.

Rather than use mirrors that can run to 100 square meters as other thermal solar systems do, eSolar uses mirrors that are about one square meter. Mr. Rogan said the smaller mirrors give eSolar a 10-fold advantage in concentrating sunlight aimed at tanks filled with water that is turned to steam, which is used to turn steam turbines.

Mr. Rogan acknowledged, however, that the 70-person company's proposed 33-kilowatt power plants, large enough to power 10,000 to 25,000 homes, will be cost-effective only in regions with abundant sun like Caloifornia, Nevada and Australia.

Still, Bill Gross, eSolar Chairman and founder of Idealab, said in a statement that the business model will allow the company to compete against plants fueled by traditional fossil fuels.

“eSolar’s primary business goal is nothing short of making solar electricity for less than the price of coal, without subsidies,” he said.