The Dow Chemical Co. (Midland, Mich.) announced last month plans for a full-scale production facility near its headquarters, dependent on obtaining local, state and federal funding. However, the Michigan Economic Development Corp., which frequently advertises on national television, pledged the firm $61.3M in tax incentives over 15 years for various projects, including this manufacturing plant if it builds it in Michigan. The proposed facility will manufacture solar shingles that employ unique thin-film solar modules categorized as Building Integrated Photovoltaics (BIPV). This invention was named one of "The 50 Best Inventions of 2009" by TIME magazine. Currently, Dow has a smaller-scale development plant in Midland, which was supported by a $20M Department of Energy (DOE) awarded in 2007 under the Solar America Initiative (SAI) Pathways Program. According to Dow, the latest plant could be operational by 2014 and create at least 1200 green jobs.

Dow is developing BIPV solar energy technology, which serve both as the outer protective surface of the building and to generate power. These new products and technologies could enable solar energy generation materials to be incorporated directly into the design of commercial and residential building materials, such as roofing systems, exterior sidings and fascias.

Dow's innovative design is based on highly cost-effective thin-film photovoltaic material denoted as CIGS, which are composed of a compound including copper, indium, gallium, and (di)selenide. These cells are incorporated into the roofing product creating a solar shingle, which ultimately lowers solar installation costs, which are essentially fixed in the market as opposed to PV modules, because the conventional and solar roofing shingles are installed at the same time. However, this approach is more conducive to new construction, as opposed to green building retrofits.

Global Solar, which has a solar panel facility in Tucson, Arizona, was the first company to demonstrate full-scale production of CIGS cells on flexible substrates and has achieved a record-setting percent solar cell efficiency, which meets SAI requirements. The SAI is comprised of companies, laboratories, universities and non-profit organizations. As part of the initiative, Dow is participating in the Technology Pathway Partnership, which was designed to accelerate the commercialization of U.S.-produced solar photovoltaic systems.

As Michigan gains, Arizona loses more manufacturing opportunity overall, as a slue of companies have either departed or overlooked the state for building new plants. Despite new incentives to attract alternative-energy companies to Arizona, Scottsdale-based Kyocera Solar Inc. announced last week that it will open a new factory in San Diego, California. Kyocera plans to maintain its Scottsdale solar headquarters, which employs only about 60 people total in engineering, marketing, sales, finance and its warehouse. 

California has been successful in not only leading the country in solar installations but in developing comprehensive clean energy policies. In addition, it benefits from a healthy corporate business climate and infrastructure, elevated by areas such as Silicon Valley, where many companies are already established. Even though Kyocera considered Arizona for its new factory, the state lacks extended history and infrastructure with many companies in this field, and San Diego was chosen since the company previously produced advanced-electronic components there and had extra space, along with skilled management from other offices in that region. The new Kyocera solar factory is expected to produce about 8,000 homes annually and will generate 75 new jobs prior to possible summer expansion.

Michigan is moving in the direction of California when it comes to offering incentives for retaining and attracting companies for clean energy manufacturing. Arizona, on the other hand, has been unsuccessful thus far in lowering its high corporate income tax rate for job creation stimulus and has sent mixed signals to companies with respect to renewable energy policies in recent weeks.

For more info: In order to anonymously receive FREE email alerts on future green technology and business articles, please subscribe on my homepage and/or follow me on Twitter. If one is interested in a consultation on this or another green business topic, please click on the "Request a Consultation with this Author" link located toward the bottom of this GLG network site.