Moving to California for the Innovation

A recent article was identified that illustrates a solar company from Tennessee moving
to the Golden State showing the power (pardon the pun) of California and the reason
why in short order, California will once again position itself as a global powerhouse. 
Innovation, capital (money and intellectual) along with the entrepreneurial spirit and
a 'Can Do' attitude rules in the formulation of the 'New Economy'.  States like Tennessee
are having a difficult time understanding the change.  The 'innovative states' and their
city/county economic development programs like those in California understand the New
Economy, such as 'Green & Clean'.  Others like Tennessee are still chasing smokestacks.
Way to Go California!  Sooner or later they will figure it out.  In the meantime, let them
read and weep.


A new day is dawning for East Tennessee solar startup Sunlight Direct. Make that the former East
Tennessee startup. Sunnier prospects have lured the company's headquarters and research and
development to San Diego, and the current economic situation has resulted in further downsizing of
the company's production facility in Oak Ridge.

Sunlight Direct CEO John Morris has left the company and founder Duncan Earl has taken on the role,
although a cautious search for a replacement is in progress, Earl said. In addition, the company has
largely abandoned its solar lighting product in favor of a concentrated photovoltaic technology that uses
the Sunlight Direct's rooftop solar collector and tracking system to generate power rather than transmit
light. And as the company lives off a nearly $1 million received last year, it's in talks about a potential
acquisition to further develop the technology. "We've had a lot of turmoil at Sunlight Direct, a lot of
transitioning," Earl said in a phone interview from San Diego. I'll say.

Earl said the company's founders discovered that the product needed more R&D than originally thought.
And the idea of saving energy with solar lighting attracted some interest, but it was "in no way, shape or
form comparable to the desire to produce energy from the sun," Earl said. The company changed technology
directions, got funding from a group of, primarily, California investors and moved R&D along with corporate
functions to California. The company continues to contract its production in Tennessee and has kept two
employees here. In the meantime, cash flow issues related to the current economic crisis have shrunk the
10-employee firm to five - three in San Diego and two locally. The firm uses several consultants to keep down
overhead, but Earl said as production increases the number of employees should expand, although most of
the growth will likely happen out West. Now, Sunlight Direct is installing photovoltaic demonstration units
at San Diego Gas and Electric and will soon install a 100-unit collector system at the nearby Miramar Marine
air base.

Earl is seeking a partner or buyer for the company with deep enough pockets to deploy the technology in the
marketplace. He said Sunlight Direct is talking "pretty seriously" with two companies regarding partnership
or acquisition. Although Earl said he couldn't name names, "They currently are not in the solar area, but they
see it's a hot market and they want to jump in one way or another." California may be sunny and warm,
but Earl said he's disappointed he was not able keep the company in Tennessee. His wife, a Grainger County
native, was not keen on the move, he said. "She loves Tennessee, I love Tennessee," he said. "Just from a
personal standpoint, we were very motivated to help build up technologies and companies in the area." But
he said a lack of investors, particularly high tech investors, made the prospect of staying local impossible.
"We ran into this idea that, 'This is a little too cutting edge for me,' " Earl said. "In California we had exactly
the opposite reaction."

Knoxville Biz,  Nov 18 by Larisa Brass