Leah Nash for The New York Times The crystal-growing room at SolarWorlds plant in Oregon. Originally a semiconductor facility, the factory reopened last October.The manufacturing sector in the United States continues to shrink but could the renewable-energy rush spur a manufacturing revival?
A number of solar-panel factories are coming online in the United States, as I reported on Sunday. Makers of wind turbines are also establishing factories in the heartland, where the factories proximity to wind farms on the Plains slashes the cost of shipping the giant machines from Europe.
In solar, there is plenty of competition from China. Boris Klebensberger, the head of the American branch of SolarWorld (the subject of my article Sunday), said that if the United States tried to compete on wages alone, We lose always, and we will lose for many years to come.
But many renewable-equipment manufacturers want to set up operations in the United States because they perceive it to be the largest market for the technologies in the years ahead. (Tax credits in the stimulus package for domestic production of renewable-energy equipment also help.) A key factor in bringing SolarWorld to Oregon, said Mr. Klebensberger, was the work force and especially Oregonians belief in change and how important renewables are. Proximity to a cluster of semiconductor factories, some of whose workers SolarWorld has recently poached, was another attraction.
Among states, the competition to lure renewable-energy manufacturers is fierce. Money can make a difference. Oregon gave SolarWorld $40 million in business tax credits, though it was less than the company had asked for. Ill tell you, these guys play eight-ball they dont play billiards, said Ted Kulongoski, the governor of Oregon, recollecting the negotiations.
Mr. Kulongoski who noted that the availability of land zoned for industrial use was also important has also succeeded in luring Sanyo, which is due to open a solar factory in Eugene Salem this fall. But he admitted that his overtures do not always succeed. He courted Schott, a solar manufacturer, but it went to New Mexico instead and will inaugurate an Albuquerque plant later this month.
Other states are hoping to edge in on the competition. Texas is currently considering incentives in the state legislature that would boost the states use of solar power, and that could help lure plants. SunPower, a panel maker, is looking at Texas, among other states, for a plant. (SunPowers manufacturing of panels and cells is concentrated in the Philippines and China, though the company makes smaller solar components in this country.)
Luke Bellsnyder, executive director of the Texas Association of Manufacturers, said that solar advocates tell us constantly that panel manufacturer X or Y was looking to Texas, but decided to go to other states because they have a better R.P.S. or better incentives for production. (R.P.S. refers to renewable portfolio standard, which is a target for renewable energy production.)
I want solar manufacturers to come to Texas, Mr. Bellsnyder added. If were going to expand and have solar on the grid, as I think we can acknowledge, then lets make sure theyre coming here.
