Renewable Energy
By 2015, the United States will be the world leader in annual PV installations. - GTM Research
At the Intersection of Supply & Demand Arizona is where everything you’re looking for comes together. Neighboring California, Arizona can not only serve the massive energy demand of the world’s 8th largest economy, but does so with the utmost efficiency. Locating or expanding in Arizona versus California takes a fraction of the time and companies enjoy operational costs of up to 40% less. Our unwavering, statewide commitment to this industry is evident through: • Landmark incentives created specifically for renewable companies • One of the most aggressive Renewable Energy Standards in the nation • Renowned, pioneering research institutions, including Arizona State University, home to the world’s first Global Institute of Sustainability
64%
15%
0.4%
1.8%
95%
of all U.S. utility-scale solar capacity in operation, under construction and under development is located in the Southwest.
Source: Solar Energy Industries Association Report, April 2011
1.7% 11%
1.7%
* Total of Operating, Under Construction and Under Development
We are particularly impressed with the interaction with higher education and research and development. And, of course, Arizona has a natural advantage in the solar-energy field. But we feel the state had really maximized that natural advantage and really established itself as the global competitor in solar energy.” – Editor Jack Rogers, Business Facilities Magazine
www.az4re n e w a b l e . c o m
Other States are Green with Envy... Why? Because renewable energy companies are flocking to Arizona. It’s that simple. Here are just a few of the global companies located in our backyard: Abengoa Solar (Spain) Solana Generating Station
Faist (London) Manufacturing Facility
Gestamp (Spain) Manufacturing Facility
Alpha Energies (United States) Corporate Headquarters
First Solar, Inc. (United States) Corporate Headquarters, U.S. Manufacturing Facility
Kyocera (Japan) Solar Division Headquarters
Centrosolar (Germany) U.S. Headquarters
Fluidic Energy (United States) R&D and Manufacturing Facility
A XP
Power-One (United States) Manufacturing Facility
ND WITH
U S
EnviroMission (Australia) U.S. Headquarters
E
Brightsource Energy (United States) Project Development
Rioglass Solar (Spain) Manufacturing Facility Saint Gobain (France) Manufacturing Facility Schletter (Germany) Manufacturing Facility Solon (Germany) Project Development Suntech Power Holdings Co. (China) U.S. Manufacturing Facility
Arizona: Natural Advantage It’s true – Arizona enjoys more than 300 days of sunshine annually. That provides us nearly 2.5 million megawatts of potential solar capacity. That provides you the opportunity to utilize our extraordinary research institutions and conduct testing all year long. And the Arizona market caters to doing just that. In fact, TUV Rheinland PTL and ASU have the only U.S. lab accredited for photovoltaic design qualification and type approval. A foundation for the very best in research and development, Arizona is the place to be – particularly for research-driven companies. www.gpec.org
Solar Insolation
Infinite supply of solar energy • An average of 321 days of sunshine • Highest concentration of sun in U.S. • 3x the solar insolation level as Germany; 2x that of Spain • Climate makes Arizona ideal for deployment of distributed and utility-scale generation capacity
Greater Phoenix: Poised To Become The Solar Capital Of The United States
Geographic Position
Access to major markets, customer base • Low-cost, low-regulation alternative well-positioned to service the California market • 95% of all U.S. utility-scale solar capacity in operation, under construction, and under development is located in the Southwest (CA, NV and AZ)
Demand Policy
Regulatory environment favorable to renewable energy companies • Aggressive Renewable Portfolio Standard (RPS) – mandates 15% renewables by 2025 • RPS includes highest solar carve out in the U.S. • To meet RPS, utilities offer rebates and performance-based incentives to residents and businesses • State tax credits for installation and production • In absence of PACE, companies like National Bank of Arizona developing effective bank financing for residents and businesses • Model Net Metering standards for other states • SSA drives commercial installations
SOLAR GEOGRAPHIC INSOLATION POSITION GEOGRAPHIC GEOGRAPHIC POSITION POSITION
DEMAND INCENTIVES POLICY
GREATE UNIQU PROP
Incentives Infrastructure
Rewards qualified companies, including manufacturing, headquarters and R&D projects • Arizona Renewable Energy Tax Incentive Program - Refundable credit equal up to 10% of investment - 75% reduction in property taxes for up to 15 years • Job Training Fund - Up to $1.5M in grants • Foreign Trade Zones - 75% reduction in property taxes • Refundable R&D tax credit - Includes a refundable option for small businesses • AZ Quality Jobs Incentive - $9K per job of corporate income tax credits www.az4re n e w a b l e . c o m
INCENTIVES INCENTIVES
INFRASTRUCTURE
AVAILABLE INCENTIVES RESOURCES
Human Capital
Renewable Energy
Mature talent and workforce pipeline • Critical location for semiconductor industry: 4th in nation for semiconductor manufacturing employment • Arizona State University (ASU): Nation’s largest producer of natural sciences and engineers • ASU home to world’s first Institute of Global Sustainability • Maricopa Community Colleges: AZ’s largest job-training provider and well-suited to train technician-level occupations in high-tech manufacturing industry
University Assets
Applied research models at Arizona State University • World’s largest solar testing & certification project: TUV Rheinland PTL • Joint-industry research: Solar Power Lab • Organic prototype: Advanced PV Center • Innovation: Solar America Initiative R&D federal grants • Multidisciplinary effort: LightWorks
HUMAN HUMAN CAPITAL CAPITAL
EDUCATIONAL UNIVERSITY ASSETS ASSETS
ER PHOENIX UE VALUE POSITION
Assets to support a renewable infrastructure • University partnerships: SkySong, ASU Technopolis, Arizona’s Technology Enterprises • Grant funding: Science Foundation Arizona, Solar Technology Initiative • Incubators: Home to more than five start-up incubators
Operating Environment
EMERGING HUMAN TECHNOLOGY CAPITAL
OPERATING HUMAN ENVIRONMENT CAPITAL
Emerging Technology
Advantageous business climate • One of the most cost-competitive locations in the U.S. • Minimal regulation • Permitting guaranteed in 60 days or less • Right-to-work state
Available Resources
An environment to support and grow industry • National Renewable Energy Laboratory (NREL): ranks AZ best for potential solar capacity • Abundant open land • Designated to have “most secure water supply” among the five Megapolitans in the Mountain West by Brookings
www.gpec.org
A Region Committed to the Success of the Industry Not since the growth of the aerospace industry in the 1950s have the public and private leadership in Greater Phoenix been so motivated to see an industry grow and thrive here. It seems nearly every week, something new is announced to better support the renewable industry. While NREL ranks Arizona number one in the U.S. for solar capacity, it’s more than just our natural advantage. Arizona’s renewable energy standards are some of the most aggressive in the nation, and our RPS includes one of the (if not the) highest solar carve outs in the nation.
Our leadership is consistently putting measures in place to increase demand in our market.
www.az4re n e w a b l e . c o m
STATE
CARVE OUT
BY YEAR
AZ
4.5%
2025
NM
4.0%
2020
DE
3.5%
2026
CO
3.0%
2020
DC
2.5%
2023
MD
2.0%
2022
IL
1.5%
2025
NV
1.5%
2025
NY
0.5%
2015
OH
0.5%
2025
PA
0.5%
2021
NH
0.3%
2014
MO
0.3%
2021
NC
0.2%
2018
Sampling of States with Solar/DG Provisions in RPS
Arizona “easily took the top ranking” as first in the nation for being a leader in renewable energy. – Business Facilities Magazine
Arizona’s Renewable Energy Incentive Program provides a 75% reduction on real and personal property taxes and a 10%
8M
W
46
04
MW
refundable income tax credit for solar, wind, geothermal and other renewable energy companies that expand or locate in Arizona.
75
800 700
Top 10 Markets:
600
Contracted Utility PV Pipeline
500
California
400
Arizona
300
MW
as
34
MW 35 Te x
Flo rid a
38
MW
MW ad o lar Co
Ne
w
Jer
se y
45
56
MW Yo rk w
io Oh
MW
MW Ne
Ne w
Me xic o
a va d Ne
ia
na izo Ar
Ca
lif
orn
0
57
100
99
10 6
MW
200
Source: GTM Research, The U.S. PV Market in 2011
www.gpec.org
GPEC: Your Connection to the Future The Greater Phoenix Economic Council (GPEC) is Arizona’s premier economic development organization. Representing Maricopa County, 20 communities and more than 150 private investors, GPEC connects companies with Arizona’s key leaders and influencers, and provides site-selection services at no cost. We aim to provide an easy and transparent way to evaluate our market with a focus on speed and efficiency.
Renewable Energy Greater Phoenix Economic Council 602.256.7700 | 1.800.421.4732 | info@gpec.org RENEWABLE ENERGY www.az4renewable.com
@gpec
gpec greater phoenix
greater phoenix economic council (groups)
greater phoenix economic council
Member Communities MARICOPA COUNTY
GILA BEND
PEORIA
APACHE JUNCTION
GILBERT
QUEEN CREEK
AVONDALE
GLENDALE
SCOTTSDALE
BUCKEYE
GOODYEAR
SURPRISE
CASA GRANDE
MARICOPA
TEMPE
CHANDLER
MESA
TOLLESON
FOUNTAIN HILLS
PHOENIX
WICKENBURG
www.gpec.org