Originally posted at the online Wall Street Journal Here

American Capital Energy Inc. plans to use panels from Suntech Power Holdings Co. (STP) in a 20-megawatt Nevada project for which American Capital is raising about $100 million in funding, Clean Technology Insight has learned.

The project, to be built next year, marks American Capital Energy’s full-force entry into the utility-scale solar power markets, with the company installing a total of 55 MW next year. It had previously focused on smaller photovoltaics installations for commercial and industrial customers.

The power from the project will be supplied to NV Energy Inc. (NVE) under a power-purchase agreement approved by the Nevada utilities board earlier this month. It will be built next year near Searchlight, Nev., 55 miles south of Las Vegas.

“That’s one of the largest [photovoltaics] projects in North America,” said Tom Hunton, president of American Capital Energy, in an interview with Clean Technology Insight.

The North Chelmsford, Mass., company is in the process of closing on a debt-and-equity package of about $100 million to fund the project, said Hunton. He declined to name the investors.

American Capital Energy’s plans for the project include use of Suntech Power’s panels, inverters from Advanced Energy Industries Inc. (AEIS), and tracking systems from Array Technologies Inc., said Hunton.

“We aren’t commenting on any deals that aren’t finalized and this is in that category,” Suntech spokeswoman Sarahjane Sacchetti said in an email.

Given Suntech’s average pricing of around $2 per watt, the deal could bring Suntech about $40 million. Panels are the most expensive components of an entire solar system.

In October, Suntech announced a new 270-watt panel designed for quick integration with a tracker from Array Technologies and inverters from Advanced Energy and other providers, with the components available at “preferential pricing” if included with purchase of the panel.

The Nevada project is one of three utility-scale installations American Capital is planning next year. It has already signed a 30-MW power-purchase agreement with a utility, said Hunton, who declined to discuss details of the deal.

The developer also was selected to build a 5-MW project next year for Public Service Electric and Gas Co., a New Jersey utility, according to Hunton. PSEG representatives declined to comment on its solar selections or to confirm that it selected American Capital Energy. According to Hunton, PSEG will put the 5-MW project in Hamilton, N.J.

“Our bread and butter has been commercial projects,” said Hunton. To date, American Capital installed about 20 MW through smaller commercial installations, he said.

Once you start building large utility-scale projects, “margins do go down, but the dollar volume goes up and we make it up in volume,” said Hunton of the shift in the company’s business.

Its revenue grew from $1 million in 2006, to $53 million in 2008, and between $125 million and $150 million in fiscal 2009, according to a public relations representative of American Capital Energy.

Next year, the smaller commercial projects will still outnumber those undertaken for utilities, said Hunton, but the utility projects will account for more revenue.

American Capital Energy is profitable and employs 28 people. It has been funded through an original investment by the founders and subsequent revenue.

“The growth has been steep for us and we’ve managed it just fine. It’s getting steeper and we’ll continue to evaluate [outside financing] options,” said Hunton.

(Dow Jones Clean Technology Insight covers news about public and private clean-technology and alternative-energy companies.)

-By Yuliya Chernova, Dow Jones Clean Technology Insight; Yuliya.Chernova@dowjones.com