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Oregons Solar Advantage The Leading U.S. Solar Manufacturing Location.

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Presentation on theme: "Oregons Solar Advantage The Leading U.S. Solar Manufacturing Location."— Presentation transcript:

1 Oregons Solar Advantage The Leading U.S. Solar Manufacturing Location

2 Why Oregon? Established top tier U.S. semiconductor State Establish & growing silicon supply chain Established high quality tech work force Low business costs Effective incentives Access to key markets

3 Oregon Leads in Green Policy Oregon is the leading solar energy manufacturing center in the U.S. Highly competitive solar manufacturing cash incentives Top 10 in U.S. for renewable energy investment Portland is Americas Greenest City (Business Journals Index, 2010) Oregon #2 in Clean Energy Leadership (CleanEdge Report, 2011) Oregon is #4 for LEED building space per capita (USGBC, 2011) Oregon is #4 for wind energy capacity either online or under construction (AWEA, 2011)

4 Oregon Leads in Solar Manufacturing

5 Oregons Solar Industry: Largest & Fastest Growing in the U.S. CompanyTypeCapacity SolarWorldIngots to Modules 500 MW SolexantThin Film100 MW by 2013 MEMC/SolaicxIngots/Wafers250 MW + Sanyo Solar OregonIngots/Wafers125 MW Peak SunPolysiliconPilot SoloPowerThin Film CIGs100 MW 2012

6 Oregon Solar Supply Chain CompanyType Advanced EnergyInverters FT Solutions (Ferrotec)Crucibles Oregon CrystalCrystal growing TBALow Iron Glass SiC ProcessingSilicon Recycling PV TrackersSolar Trackers Toyo TansoGraphite Products Tokai CarbonGraphite Products SapaFrames TBASolar Wire

7 Oregons Business Energy Tax Credit (BETC) delivers cash and or tax credits to manufacturing companies Most companies qualify for continuing awards Strong incentive support to primary company and suppliers Subject to application, approval and performance contract Tax abatement and other incentives available Effective Incentives $200 Million/2 Years Incentives for Solar Manufacturing

8 Tax Exemption Programs Property tax exemptions: – Strategic Investment Program (SIP) for big facilities, 15-year partial exemption – Enterprise Zone, 100% exempt: Three years, for eligible firms adding full-time jobs With zone sponsor agreement, 1–2 extra years Income tax exemptions: – Oregon Investment Advantage 10-year exemption/deduction of taxable income attributed to facility Locate in one of 16 eligible Oregon counties

9 Enterprise Zone (E-Zone) Property tax abatement program New, qualified plant & equipment 100% exempt from taxation Three years automatic with hiring requirements and potential urban zone additional conditions Extra one or two years (years 4 & 5) based on written agreement with local zone sponsor Future use for subsequent phases or projects Exemption periods apply to each years newly operational property over 3 years per authorization Future authorizations with 10% employment increases

10 Oregon Investment Advantage State income tax holiday – 10-year exemption/deduction of taxable income attributed to facility Inside eligible county – one of 16: – On any industrially zoned land, or – For any type of business in small city (urban growth boundary) Requires: – Operations to be new/unique to that firm in Oregon (distinction for same company or between subsidiaries) – Five or more full-time, year-round hires – Not competing with existing businesses in relation to local resources or sales May 31, 2014 Business Development Incentives

11 Small Scale Energy Loan Program (SELP) – Loans backed by state tax-exempt general obligation bonds; adequate security required. – Interest rate based on bond issue rate, typically 6-7%. – Loan terms are flexible, from 5 to 20 years, loan size as large as $20 million. – Loans for energy efficiency, renewable energy production, and renewable energy manufacturing. – Can include most capital costs e.g. design, engineering, land, building and equipment costs. – Fess and interest pay program costs. – Can be used with state BETC and federal incentives. Loans to Qualified Companies

12 Skilled & Available Workforce Long-established semiconductor industry – Over 50,000 workers in Oregon trained in the semiconductor and related supply chain Experienced workforce for PV manufacturing Young & Educated Workforce: Percentage of year olds is 39% above U.S. average Solar-specific programs at Community Colleges and Universities

13 Oregon Has Low State and Local Business Taxes Oregon has the lowest effective business tax rate in the U.S. (Ernst & Young COST Study, 2010) Local property taxes, 1–2% of assessed value – Inventories and vehicles excluded – Exemption Programs No sales tax, no inventory tax Single Sales Factor tax structure

14 Oregon Business Climate Lowest Total Effective Business Tax Rate Oregon is tied for The Lowest in the U.S. at 3.5% …Also Ranked #2 Most Competitive State for New Investment …Single Sales Factor business tax, and NO sales tax Ernst & Young / Center on State Taxation

15 Low Electrical Power Cost Average industrial rates are about half that of Californias (U.S. Department of Energy, 2010) PublicPrivate Sources Regional Supply BPA (mostly hydro) Own (very limited) Portland General Electric (PGE), Pacificorp Hydro, gas, coal, wind Mostly owned Price Approval Local Board or City Government Oregon Public Utility Commission Service Area Profile Some urban Mostly rural Some rural Mostly urban Price Estimate $ $0.09 kWh

16 Advanced Inter-Modal Connectivity Port of Portland, Oregon

17 Next Day Second Day Third Day Portland Truck Delivery Schedule

18 Port of Portland West Coast Flight Hub About 13 million passengers per year 200,000 tons of air cargo per year 20 carriers – 14 passenger carriers – 6 all-cargo carriers, including nonstop to Seoul About 216 passenger flights daily Nonstop flights to Asia, Europe & Canada – Tokyo, Amsterdam; – Calgary, Toronto, Vancouver. General aviation airports in Hillsboro, Troutdale and Salem, Oregon 18

19 Delta Non-Stop Service: Tokyo-Portland-Amsterdam

20 For more information on why Oregon makes solar sense Mr. Bruce A. Laird Clean Technology Recruitment Officer Business Oregon

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