Snowden352
11-26-2007, 04:10 PM
The sun is starting to shine on Oregon's solar industry
Solaicx opening could signal a state solar revolution
Portland Business Journal - by Matthew Kish Business Journal staff writer
Cathy Cheney | Portland Business Journal
Solaicx CEO Bob Ford, left, with Oregon Gov. Ted Kulongoski at a ceremony earlier this week, said his company decided to build a solar manufacturing facility in the state because of some “very desirable aspects.”
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Four days after Solaicx opened the doors on a solar manufacturing facility, insiders say more solar manufacturers could soon call Oregon home.
"Oregon is going to be one of, if not the, key manufacturing location in the United States for solar," said Bob Ford, CEO of Santa Clara, Calif.-based Solaicx.
Both Ford and Jon Miller, executive director of the Oregon Solar Energy Industries Association, said several manufacturers continue looking for locations here.
Those include Aliso Viejo, Calif.-based XsunX Inc., a pre-revenue public company that designs solar cells and manufacturing systems.
"We're trying to complete a lease right now," said XsunX CEO Tom Djokovich. "We want to get the building ready and move [to Portland] by mid-next year."
The company wants to find a 50,000-square-foot manufacturing plant with room to expand by another 150,000 square feet.
It's looking within a 30-minute radius of the airport and has a $21 million financing package for the project, Djokovich said.
It's already been a big year for the state's solar industry. The German company Solarworld AG announced in March it will spend nearly $400 million to build what could be the nation's largest solar manufacturing facility in Hillsboro.
Solaicx, which makes the ingots and wafers used to make solar panels, has hired 40 local employees at the new Portland plant. It expects to hire 20 more in the next two months. The Portland plant could eventually employ 200.
"We're probably the top solar energy manufacturing cluster in the country," said Miller, whose organization had 60 members last year, but grew to 90 this year.
Oregon is already fifth nationally in installations, with about 400 of the nation's 8,500 annual solar panel installations.
Several factors contribute to Oregon getting a big chunk of the $1 billion U.S. solar industry. Solaicx chose Portland three years ago over Austin, Texas, and Phoenix, Ariz.
The state's skilled work force was the biggest factor.
"Portland had the best overall conditions," Ford said. "Easily the most important part of sighting in Portland was around skill sets [of workers]."
Solar manufacturing requires highly trained workers, which are in ample supply in Oregon thanks to the state's robust semiconductor industry.
Secondly, the state's abundant hydropower means cheap, reliable electricity, a must for high-energy consuming operations like solar manufacturing.
"Access to reliable power was the second key hurdle," Ford said. "Hydropower made a lot of sense."
The low cost of business in Oregon, relative to California, also made Oregon attractive, Ford said.
Increased tax credits for solar manufacturers were a bonus.
This year, the Legislature increased tax credits for renewable energy manufacturers to 50 percent of the construction cost of a new facility. The credit is capped at $10 million and can be taken over five years.
"Solaicx is tapping into some very desirable aspects," Ford said. "I would expect some other solar companies will come into the state."
Solaicx is still pre-revenue, but could start selling products to some of the world's largest solar equipment makers in the next few weeks.
The company was funded with $45 million in venture capital.
mkish@bizjournals.com | 503-219-3414
Solaicx opening could signal a state solar revolution
Portland Business Journal - by Matthew Kish Business Journal staff writer
Cathy Cheney | Portland Business Journal
Solaicx CEO Bob Ford, left, with Oregon Gov. Ted Kulongoski at a ceremony earlier this week, said his company decided to build a solar manufacturing facility in the state because of some “very desirable aspects.”
View Larger
Four days after Solaicx opened the doors on a solar manufacturing facility, insiders say more solar manufacturers could soon call Oregon home.
"Oregon is going to be one of, if not the, key manufacturing location in the United States for solar," said Bob Ford, CEO of Santa Clara, Calif.-based Solaicx.
Both Ford and Jon Miller, executive director of the Oregon Solar Energy Industries Association, said several manufacturers continue looking for locations here.
Those include Aliso Viejo, Calif.-based XsunX Inc., a pre-revenue public company that designs solar cells and manufacturing systems.
"We're trying to complete a lease right now," said XsunX CEO Tom Djokovich. "We want to get the building ready and move [to Portland] by mid-next year."
The company wants to find a 50,000-square-foot manufacturing plant with room to expand by another 150,000 square feet.
It's looking within a 30-minute radius of the airport and has a $21 million financing package for the project, Djokovich said.
It's already been a big year for the state's solar industry. The German company Solarworld AG announced in March it will spend nearly $400 million to build what could be the nation's largest solar manufacturing facility in Hillsboro.
Solaicx, which makes the ingots and wafers used to make solar panels, has hired 40 local employees at the new Portland plant. It expects to hire 20 more in the next two months. The Portland plant could eventually employ 200.
"We're probably the top solar energy manufacturing cluster in the country," said Miller, whose organization had 60 members last year, but grew to 90 this year.
Oregon is already fifth nationally in installations, with about 400 of the nation's 8,500 annual solar panel installations.
Several factors contribute to Oregon getting a big chunk of the $1 billion U.S. solar industry. Solaicx chose Portland three years ago over Austin, Texas, and Phoenix, Ariz.
The state's skilled work force was the biggest factor.
"Portland had the best overall conditions," Ford said. "Easily the most important part of sighting in Portland was around skill sets [of workers]."
Solar manufacturing requires highly trained workers, which are in ample supply in Oregon thanks to the state's robust semiconductor industry.
Secondly, the state's abundant hydropower means cheap, reliable electricity, a must for high-energy consuming operations like solar manufacturing.
"Access to reliable power was the second key hurdle," Ford said. "Hydropower made a lot of sense."
The low cost of business in Oregon, relative to California, also made Oregon attractive, Ford said.
Increased tax credits for solar manufacturers were a bonus.
This year, the Legislature increased tax credits for renewable energy manufacturers to 50 percent of the construction cost of a new facility. The credit is capped at $10 million and can be taken over five years.
"Solaicx is tapping into some very desirable aspects," Ford said. "I would expect some other solar companies will come into the state."
Solaicx is still pre-revenue, but could start selling products to some of the world's largest solar equipment makers in the next few weeks.
The company was funded with $45 million in venture capital.
mkish@bizjournals.com | 503-219-3414
