Georgia solar energy industry overview [2011]

GEORGIA SOLAR
ENERGY
Industry Overview

THE FUTURE FOR SOLAR COMPANIES IS BRIGHT IN GEORGIA

Georgia's business-friendly environment, incentives, world-class research facilities, favorable geographic location and excellent logistics infrastructure attract photovoltaic (PV) technology companies and developers and manufacturers of solar technologies.

Suniva, the Georgia-grown manufacturer of high-efficiency monocrystalline silicon solar cells and high-power density solar modules, is headquartered in the state. Enfinity, the world's largest developer of solar PV solutions, and the German company, Mage Solar, have both chosen Georgia as their U.S. headquarters, citing the state's strategic location, Quick Start workforce training program and low-cost production as key factors in their decision.

GEORGIA'S WORLD-CLASS RESEARCH FACILITIES
The U.S. Department of Energy (DOE) established a University Center of Excellence for Photovoltaics Research and Education (UCEP) at Georgia Institute of Technology, one of only two such centers in the United States. The Center's mission is to improve the fundamental understanding of the science and technology of advanced PV devices, to fabricate record-high efficiency solar cells and to provide industry guidelines for achieving cost-effective and high-efficiency PV devices.

Further accelerating the growth of Georgia's cleantech sector is the Georgia Research Alliance, a unique nonprofit organization that brings together Georgia's research universities, business community and state government to create opportunities to grow Georgia's economy through scientific discovery.

LOW BUSINESS COSTS
Because Georgia's electricity costs are below the national average, locating in Georgia can help solar technology manufacturers be more competitive.

AVERAGE RETAIL PRICE OF ELECTRICITY TO ULTIMATE CUSTOMERS
IN INDUSTRIAL SECTOR (Cents per kilowatt hour) 12

10

8

6

4

2

0

California Georgia Michigan North New Mexico New York Oregon Washington

10.04

6.67

6.74 Carolina 6.38

10.14

5.21

State

5.54

4.55

Data courtesy of the U.S. Energy Information Administration, U.S. Department of Energy, 2008

GLOBAL HORIZONTAL SOLAR RADIATION - ANNUAL

Georgia has available and comparatively inexpensive real estate. Companies can find large manufacturing and technology facilities with clean room capacity that can be modified for solar production, reducing time and start-up costs.
Georgia's favorable geographic location and excellent logistics infrastructure mean companies that locate here enjoy access to Hartsfield-Jackson Atlanta International Airport and Georgia's seaports. Hartsfield-Jackson is the world's busiest passenger airport and 11th-largest air cargo hub. Georgia's seaports at Savannah and Brunswick offer the top shipping lines serving Europe and Asia from some of the most efficient terminal facilities in the world. Savannah's Garden City Terminal is one of the few ports in the United States with two class-1 railroad facilities on terminal.
WORKFORCE
Businesses in Georgia are fueled by skilled and knowledgeable employees. CNBC ranked Georgia's workforce #1 in its "America's Top States to do Business, 2009" ranking. In addition, the state's nationally recognized Quick Start workforce training program offers customized, job-specific training and orientation to ensure that Georgia companies have the highly-skilled talent they need to thrive.

Georgia provides a wide variety of statutory and negotiated incentives to help companies realize their goals. Among these:
A state Job Tax Credit ranging from $3,750 $20,000 per job over five years is offered to qualified industries
A state Quality Jobs Tax credit of $12,500 $25,000 per job over five years is available to qualifying companies that create at least 50 jobs that pay at least 110% of the county average wage
A state Sales and Use Tax Exemption for qualified manufacturing machinery, material handling and clean room equipment
A state tax incentive of 35% of total system cost as a corporate tax credit up to $500,000 for commercial applications
A federal tax incentive of 30% of total system cost as a Grant or Investment tax credit
Georgia Power Company and many of the electric cooperatives (EMCs) will purchase solar generated power for the statewide grid at prenegotiated rates.
MACRS Depreciation: Commercial customers can take advantage of accelerated 5 year depreciation for solar property. In the first year, you can depreciate approximately 32% of the basis of the property

FOR MORE INFORMATION VISIT georgia.org/energy

HOW WE HELP
The Georgia Department of Economic Development (GDEcD) has a business enterprise team focused on renewable energy. This team can provide site evaluation and selection assistance, access to workforce and training, business and financial resources, industry expertise, access to international markets, contacts with communities and information regarding the state's innovation infrastructure.
GDEcD partners with the Centers of Innovation to foster collaboration with the growing solar industry. The Center of Innovation for Energy works alongside innovative companies with high growth potential to increase the production and use of renewable energy and alternative fuels in Georgia. The Center provides industry expertise, connections to state and federal agencies and access to university research and development.
GEORGIA ENERGY ASSOCIATIONS
Georgia Environmental Finance Authority (GEFA): GEFA promotes energy efficiency, renewable energy and energy assistance programs.
Georgia Solar Energy Association (GSEA): GSEA promotes the economic and environmental benefits of solar energy through education, advocacy and industry support.
Southeast Energy Efficiency Alliance (SEEA): SEEA is a nonprofit organization that brings together all levels of the public, private and nonprofit sectors to promote energy efficient policies and practices.
Southface Energy Institute: This institute focuses on promoting sustainable homes, workplaces and communities through education, research, advocacy and technical assistance.
Greenguard Environmental Institute: Founded in Georgia in 2001, GEI oversees third-party certification programs that identify acceptable product emission standards and certify low-emitting products.
Georgia Department of Economic Development, 75 Fifth Street, N.W., Suite 1200, Atlanta, GA 30308 - USA 404.962.4040 I business@georgia.org I georgia.org/energy