TechPulse 360

Tinted windows may seem a trivial after-thought to traditional building construction. But the business opportunity in coming years is anything but dull.

The market for next generation tint-on-demand, or smart, glass is estimated at more than $3 billion. However, high costs are likely to mute annual growth until mid decade or beyond.

Tinted windows will become a $3 billion market, but costs will restrain growth until mid decade. Sage Electrochromics is preparing with a new plant.

This delay isn’t keeping suppliers from preparing for an explosive market.

Next generation tinted windows are nothing like the colored glass many people envision. These windows use sophisticated technologies – similar to ones used to make computer chips and flat-panel displays – to steer away unwanted solar heat while letting in sun light for illumination.

Estimates are that cooling costs can be cut by 25 percent and winter heating bill reduced when windows are programmed to let more heat pass. Lighting costs can drop 60 percent.

The windows are coated with electrochromic glazing, in some cases based on ceramics, that absorb infrared radiation. Some require small doses of electricity to work.

Companies such as RavenBrick, Rockwell Scientific and Gentex have the market in their sites. Last week, the Energy Department weighed in, offering a $72 million loan guarantee to competitor Sage Electrochromics of Faribault, MN. The company will use the money to build a $110 million high volume manufacturing plant next to its headquarters.

Construction is to begin this summer with production to begin at the end of 2011.

“We find ourselves in a good market environment,” says CEO John Van Dine, who has been selling limited quantities of his glass since 2003.

He says his SageGlass, which sells for $35 to $50 a square foot, is more economical for building designers than the alternative of installing larger cooling systems, exterior sunshades and interior blinds. But it isn’t yet slam-dunk cheaper.

The goal now will be to lower production costs – and watch revenue that came in at less than $10 million last year multiply.