Santa Clara, Calif.-based DayStar Technologies (Nasdaq: DSTI) has signed a deal that could see Germany's juwi buying up to 25 percent of DayStar's thin-film solar production through 2011.

Under the letter of intent, juwi, a developer of solar, wind and biomass projects, will work with DayStar in the early stages of production to test and evaluate modules in field installations.

DayStar said juwi would also assist with third party qualifications required for financing large utility power plants.

"Engaging DayStar at this important stage of their commercialization is critical to ensuring our well designed and cost-effective system solutions," said Lars Falck, managing director of juwi's solar unit.

"We believe DayStar's CIGS modules can offer us a competitive cost and performance advantage in meeting our aggressive growth plans for the future."

DayStar's photovoltaic products are based on copper indium gallium selenide, or CIGS, thin-film semiconductor technology.

DayStar said that by the end of 2007, juwi had developed more than 600 photovoltaic power plants with a total capacity of 80 megawatts.

In 2008, juwi plans to install an additional 120 MW. The company is currently constructing a 40 MW power plant near Brandis, Germany, which it said would be the world's largest grid-tied photovoltaic system when complete.