QBotix

What did it do?

QBotix developed a dual-axis tracking system for solar farms that, instead of putting a separate motor on every row to turn the panels towards the sun, used robots running on rails. The robots, called Solbots, travelled between the rows and adjusted the angle of the panels at regular intervals; the company promised up to 40 per cent more energy than fixed systems with this method.

Why did it shut down?

The company raised $12.5 million from NEA, Firelake Capital, DFJ JAIC and the US Department of Energy's SunShot programme, and in 2014 a further $12 million in a round led by E.ON and Iberdrola. In September 2014 Mike Miskovsky, former CEO of Zep Solar, took over the leadership and founder Wasiq Bokhari became chairman. But the solar industry had become cost-driven; as single-axis trackers became cheaper and more reliable, solar farm developers steered clear of a young start-up's expensive and complex system. In its final months the company turned to licensing its technology and selling software, but according to Fortune this cost-cutting step came too late. Out of cash, QBotix laid off most of its staff and closed its doors in August 2015.

The story

QBotix was a Menlo Park start-up that tackled one of solar power's stubborn cost items with robots. Instead of putting a separate motor and control unit on every row of panels in a sun-tracking system, robots called Solbots, travelling from row to row on rails, adjusted the angle of the panels at regular intervals. The company said this dual-axis system would generate up to 40 per cent more energy than fixed-mount systems and up to 15 per cent more than single-axis trackers.

The idea caught the attention of big energy companies. Having raised $12.5 million from NEA, Firelake Capital and DFJ JAIC as well as the US Department of Energy's SunShot programme, QBotix took a further $12 million in 2014 in a round led by E.ON and Iberdrola. In September 2014 Mike Miskovsky, former CEO of Zep Solar, which had been bought by SolarCity, took the helm, and founder Wasiq Bokhari became chairman. At the time the company's order book exceeded 80 megawatts.

But the industry was turning to cheap, proven equipment rather than new and expensive technologies. Single-axis trackers became both cheaper and more reliable. Those building solar farms meant to run for years were reluctant to trust the complex robots of a young start-up. In its final months the company turned to licensing its technology and selling its software, but the move came too late.

In August 2015 QBotix laid off most of its staff and closed its doors. A farewell note published in Greentech Media said the shrunken team had stayed focused until the last day but had run out of the time and cash needed to finish the job. Fortune, for its part, pointed out that the closure came at a time when the solar industry was growing fast. QBotix became one of the instructive examples of how technical superiority alone is not enough in a commoditising market.

Lessons for founders

• In a commoditising market, technical superiority alone is not enough; if unit cost is the only criterion the customer decides on, prove your product on that criterion first.
• Customers buying infrastructure that will run for twenty years ask whether the supplier will be around for that long; proof of reliability and the warranty structure matter as much as the product.
• Plan a move to a capital-light model such as licensing before the cash runs out; QBotix's pivot in its final months came too late.

Sources

1. QBotix system uses mobile robots to optimize solar panel orientation (New Atlas, 2012-09-11)
2. Zep Solar CEO zips over to run QBotix (PV Tech, 2014-09-11)
3. As a Valley solar startup shuts down, the solar sector booms (Fortune, 2015-09-22)
4. Robotic solar tracker startup QBotix closes shop (Solar Choice, 2015-09-24)
5. RIP QBotix: Robotic Solar Tracking Fails to Reach the Market (Greentech Media)

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