Solar Energy in Michigan

Solar Attracts Business Leaders
Economic Development groups in Michigan's Saginaw Valley must have noticed that the only bright spot in the regions economy has been renewable energy. On February 12, 2009, three of the groups, Midland Tomorrow, Bay Future Inc, and Saginaw Future Inc., have formed the Great Lakes Bay Economic Development Partnership to promote the area.

The proximity of Hemlock Semiconductor, the world's largest producer of super-pure polycrystalline silicon, that is used to manufacture photoelectric solar cells, has already begun attracting solar cell manufacturers to the area. The groups plan to accelerate that growth, using, among other approaches, a website, Michigan Solar Advantage.

The Michigan Department of Environmental Quality recently gave a boost to all forms of alternative energy by asking that applicants interested in building coal generation facilities consider all possible alternative first.

Writing in the Detroit Free Press in January, 2009, former DEQ director Steve Chester wrote that investing in renewable energy would, by 2025, " not only dramatically reduce greenhouse gases from Michigan sources but also create 129,000 new jobs, add $25 billion to Michigan's economy and result in lower energy prices for home owners and businesses."

Bay City "Net Zero" Home Produces More Energy Than it Uses
A new home in Bay City's Monitor Township uses Dow Solar shingles and a suite of other technologies to do something skeptics might not have believed could be done in cold, cloudy Michigan. Over the course of a year, the home is designed to produce more energy than it uses, resulting in negative energy bills, and almost no greenhouse emissions. The structure was built by local builder, Cobblestone Homes, in cooperation with Dow Chemical, Dow Corning, and Hemlock Semiconductor.

The house, which has 3 bedrooms and 3400 square feet, is expected to sell in the 300,000 dollar range, and has an expected pay back period of 22 years on the additional energy upgrades. According to the Bay City Times, Dow expects 50,000 houses to install Dow's Powerhouse shingles in the next 5 years.

Take a virtual home tour here.

Ford Plant to be Reconfigured
The Detroit Free Press reported in June 2009 that newly proposed incentives could bring Renewable Manufacturers to the state in a rehabilitated Ford assembly plant at Wixom, MI.

According to the Free Press, "Investment in the proposed project would initially be $725 million to create 4,300 direct jobs, growing eventually to about $1 billion altogether. The two firms would use about half of the 4.7 million square feet of buildings on the 320-acre site, and recruit other firms to join them."

Under the proposal, Ford would sell the facility to Xtreme Power of Austin, Texas, a grid storage battery maker, and Clairvoyant Energy, a solar panel maker,  of Santa Barbara, Calif. Associated Press reported that the facility had "the potential to create another 10,000 supplier-related jobs -- 1,500 at or near the plant."

Hemlock Semiconductor
The Saginaw Valley is home to Hemlock Semiconductor, a joint venture of Dow Chemical and Dow Corning, the world's largest manufacturer of the polycrystalline silicone compounds necessary for solar electric panels. An expansion announced in May 2009 in Hemlock has made the area a magnet for  new solar manufacturing firms. One such enterprise is Evergreen Solar, which will be locating in Midland, and bringing 15 to 25 jobs, and a $30 to 50 million investment.

Some advocates of coal energy take the position that new coal plants are needed in order to supply the energy the nascent solar industry needs to expand.

On December 15, 2008, HSC announced a further expansion that will create an additional 300 jobs. An Associated Press report quoted Stephanie A. Burns, Dow Corning’s chairman, president and CEO, “Dow Corning and our Hemlock Semiconductor joint ventures hope to create a viable solar industry that produces new, high paying jobs, clean power technologies and a revitalized economy,...We’re committing our resources, know-how and technology because we are confident that solar technology represents a tremendous opportunity for both clean energy and economic growth.”

HSC split its new investment, committing to new expansion at the Thomas Township facility, beginning immediately, and to build a new, $1.2 billion manufacturing facility in Clarksville, Tennessee. The two states have competed vigorously for the investment, and HSC promises that up to $800 million in further investment will be made in coming years, divided between the two locations.

Solar Boom in Saginaw Valley
The developments at Hemlock Semi has sparked enthusiastic speculation of a coming "solar boom" in the Saginaw Valley.

In late 2008, economic development groups in the Saginaw Valley communities of Midland, Bay City, and Saginaw, formed a "Solar Alliance" to research the potential for further growth in the area.

In February of 2009, those groups launched a marketing campaign, with a companion website MISolarAdvantage.com to bring new solar manufacturing and fabrication industry to the area. Many other regions around the world are competing for business in this sector.

According to the Bay City Times, "The group is called the Great Lakes Bay Economic Development Partnership, after a regional "brand" developed by a Midland marketing company.

Hollister said the three organizations have signed a memorandum of understanding to jointly market the region and recruit new solar investment.

The slogan is "Locate at the Source," a reference to Hemlock Semiconductor in Saginaw County, which makes a third of the world's polycrystalline silicon, a key component in solar panels and electronic devices."

Michigan's two largest utilities, Consumer Energy, and DTE, are moving in the direction of solar photovoltaics, even though Michigan is not known as a sunny state.

"Europeans are so far ahead of us in terms of renewables. There's a lot of photovoltaics installed in Germany, and Germany doesn't have very sunny weather, too," said Kurt Westermann, renewable energy business director for Black & Veatch Corp. in Ann Arbor.

A pilot program to demonstrate a "Feed In Tariff" approach is under development by Consumer Energy, which would pay premium rates for photovoltaic power. The program is limited to 2 megawatts, compared to about 900 megawatts of planned wind installation.

The Michigan Business Review reported that "The rates would be fixed for 12 years and would vary from 65 cents per kilowatt-hour for residential customers who install solar panels by the end of 2009 to 45 cents per kWh for non-residential systems. By comparison, Consumers charges customers about 10 cents per kWh for electricity."

In June, 2009, Bay City Times reporter Jeff Kart reported extensively on the emerging solar industry in the Saginaw Valley. 'In the midst of Michigan's stormy economy, a glimmer of hope is peeking through the dark clouds." Kart reported,

"A new state industry is emerging, one powered by the sun rather than an internal-combustion engine."

"In the Great Lakes Bay Region, Dow Corning and Hemlock (Semiconductor) employ more than 1,400 scientists, technicians and others in the solar energy field.

About 1,000 construction workers are on site as it expands. The company is investing a total of about $2.5 billion at the factory.", Kart reported.

Suniva locates in Thomas Township, More Solar Manufacturing possible
Thomas Township, in Saginaw County, will be the location for a manufacturing facility for Georgia based Suniva Corporation.

Aided by a photovoltaic Michigan Business Tax credit of $15 million, the plant will create 500 new manufacturing jobs, when fully operational.

According to the Saginaw News, the plant represents a $250 million investment. The News wrote, "Other planned or already OK’d incentives include: A Michigan Economic Growth Authority tax credit of up to $8.6 million; more than $45 million in property tax savings as part of a 15-year Renaissance Zone; a potential $10 million Community Development Block Grant to prepare the site for construction; and a Saginaw County Community Development Block Grant loan of $500,000."

According to the Midland Daily News, "Suniva Inc. was founded by Dr. Ajeet Rohatgi through his work at the Georgia Institute of Technology’s University Center of Excellence in Photovoltaics, which was started in 1992. The company manufactures and markets high-efficiency, low-cost photovoltaic cells and markets high power-density modules in its current 100 megawatt facility in Georgia."

Saginaw business leaders also have expressed hope that a California based solar manufacturer will be locating a $177 million solar manufacturing facility on the city's northeast side. The plan would involve revamping the defunct Enterprise Automotive Systems as a solar module manufacturing facility.

According to the Saginaw News, "If GlobalWatt chooses the Saginaw site — an unnamed Texas community is Saginaw’s competitor for the plant — the jobs would arrive at about 100 workers per year from 2010 to 2015," according to a GlobalWatt’s spokeswoman.

Michigan's largest Photovoltaic Solar Site
The Detroit Free Press reports that the largest solar site in Michigan, an array capable of powering 20 to 25 homes, is about to open. According to the Free Press, the project was inspired by Consumer Energy's experimental Feed In tariff program, which will buy renewable energy from independent providers at favorable rates. The project in Galesburg, MI, will be the first large one online under the program.

The article also mentions a number of other solar projects around the state: • Leslie Science Center, Ann Arbor: 5 kilowatts of solar panels on the roof of the Nature Center. • Oakland University, Rochester Hills: 10kw roof solar system on a student apartment complex. • University of Detroit Mercy, Detroit: 10kw solar system on the roof of the engineering school building. • Barclay Dream Farm, Webster Township, Washtenaw County: 3.2kw ground system of solar panels that move with the sun. • David D. Hunting YMCA, Grand Rapids: 18kw of solar panels on the roof. • Cityside Middle School, Zeeland: 1kw solar panels on the roof. • Michigan State University, East Lansing: 10kw roof system at the MSU Pavilion, an events center. • Jarecki Center at Aquinas College, Grand Rapids: 10kw system on its metal roof.

Pew Center Report
The Pew Charitable Trusts recently released a report on Green jobs across America, which they say is "the first-ever hard count across all 50 states of the actual jobs, companies and venture capital investments that supply the growing market demand for environmentally friendly products and services." and found that, "between 1998 and 2007, jobs in Michigan's clean energy economy grew 10.7 percent while overall jobs declined 3.6 percent."

Hemlock Semiconductor officials hailed the report, saying, "Dow Corning and Hemlock Semiconductor are excited about the future potential of solar technology as a clean and renewable energy source and are making significant investments to support this rapidly growing industry."

Reporting on the study, the Detroit Free Press noted that "Michigan has the 10th largest number of clean energy jobs in the nation".

According to the Detroit Free Press, the study noted that "the sector accounted for 22,674 jobs at 1,932 businesses in 2007, Pew researchers found. Though these numbers are still relatively small, jobs in Michigan’s clean energy sector grew by 10.7% between 1998 and 2007, compared with a 3.6% decline for all industries in the state.

Among the states, Michigan also had the third highest number of clean technology patents from 1999 to 2008.

“Michigan is a leader in today’s clean energy economy,” said Kil Huhcq-kyung, the report’s lead researcher."

The report further noted that "Michigan faces stiff competition from other states as it seeks to become a leader in advanced vehicle batteries, wind turbine parts manufacturing and other clean tech areas.

Ohio, for example, ranked fourth in the total number of clean energy jobs, with 35,267 positions at 2,513 businesses. It also attracted $74.2 million in venture capital to its clean energy industry from 2006 to 2008, compared with $55.1 million for Michigan."

Ontario, Solar/Renewable Leader
Michigan's nearest international neighbor, Ontario, Canada, has become a global leader in renewable energy, with forward leaning policies that have drawn massive investment and opportunities to the province. In January, 2009, Ontario announced a 7 billion dollar international partner ship with Korea's Samsung corporation, that will include thousands of new megawatts in renewable generating capacity.

The program will include wind turbines that will generate up to 2,000 megawatts, as well as solar power facilities that will generate up to 500 megawatts, according to Reuters News agency. The program will also create 16,000 direct and indirect jobs, including 4000 permanent jobs, mostly in new manufacturing.

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