Thin-film photovoltaic (PV) module maker AVA Solar, based in Colorado, has raised $104 million in their second round of equity funding, which was led by DCM. Return backer Invus LP also joined in, along with new investors Bohemian Companies, GLG Partners, and Technology Partners.

            AVA Solar plans to use the funding to finish construction on their first production facility, which will be located in Longmont, Colorado, and will have a 200 megawatt annual capacity. According to their website, the company hopes to finish the facility and enter large-scale production by early 2009.

            Thin-film solar modules, compared to traditional solar panels, are cheaper to produce because they avoid silicon waste. But, the money saved comes at a cost – they are generally less efficient at converting sunlight to electricity.

            AVA Solar was founded in 2007 after 15 years of development at Colorado State University’s Material Engineering Laboratory, and uses cadmium telluride in their thin-film. Even though some of the other companies utilize different materials for their PV cells, including amorphous silicon and copper indium gallium selenide, AVA Solar will still face competition from an established market of thin-film manufacturers that includes First Solar, Sulfurcell, Miasolé, ersol, and Nanosolar.

            But, AVA Solar is not too concerned. “There are very few non-amorphous-silicon thin-film manufacturers in production,” says Russ Kanjorski, vice president of marketing for AVA Solar. “So, there will be a big advantage for companies that can ramp-up in 2009.”

            “In addition,” continues Kanjorski, “we expect to have competitive manufacturing costs, plus the ability to scale our manufacturing capacity rapidly.”