Oregon’s Solar Advantage

The Leading U.S. Solar Manufacturing Location

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

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 America’s 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)

Oregon Leads in Solar Manufacturing

Oregon’s Solar Industry:Largest & Fastest Growing in the U.S.

Company Type Capacity

SolarWorld Ingots to Modules

500 MW

Solexant Thin Film 100 MW by 2013

MEMC/Solaicx Ingots/Wafers 250 MW +

Sanyo Solar Oregon Ingots/Wafers 125 MW

Peak Sun Polysilicon Pilot

SoloPower Thin Film CIGs 100 MW 2012

OregonSolar Supply Chain

Company Type

Advanced Energy Inverters

FT Solutions (Ferrotec) Crucibles

Oregon Crystal Crystal growing

TBA Low Iron Glass

SiC Processing Silicon Recycling

PV Trackers Solar Trackers

Toyo Tanso Graphite Products

Tokai Carbon Graphite Products

Sapa Frames

TBA Solar Wire

• Oregon’s 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

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

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 year’s newly operational property over 3 years per authorization

• Future authorizations with 10% employment increases

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 salesApril 10, 2023Business Development Incentives

• 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

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 18-34 year olds is 39% above U.S. average

• Solar-specific programs at Community Colleges and Universities

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

Oregon Business ClimateLowest Total Effective Business Tax Rate

Oregon is tied for The Lowest in the U.S. at 3.5%

…Also Ranked #2 Most Competitive State forNew Investment

…Single Sales Factor business tax, and NO sales tax

Ernst & Young / Center on State Taxation

Low Electrical Power CostAverage industrial rates

are about half that of California’s (U.S. Department of Energy, 2010)

Public Private

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 urbanMostly rural

Some ruralMostly urban

Price Estimate

$0.05 - $0.09 kWh $0.05 - $0.09 kWh

Advanced Inter-Modal ConnectivityPort of Portland, Oregon

Next Day

Second Day

Third Day

Portland Truck Delivery Schedule

Port of PortlandWest 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

Delta Non-Stop Service:Tokyo-Portland-Amsterdam

For more information on why

Oregon makes solar sense

Mr. Bruce A. Laird

Clean Technology Recruitment Officer

Business Oregon

Bruce.a.laird@state.or.us

www.oregon4biz.com