Chandler and other Valley cities are facing fiercer competition to lure solar-manufacturing companies, not only among states but among cities within metro Phoenix.
For residents of Chandler and elsewhere, the outcome could determine how and when their long-term energy needs will be met. Between 2008 and 2025, the state is expected to need 16,000 megawatts of new power, a doubling of power output over less than 20 years.
"The state needs to decide how much of that will be produced by solar and how much by another energy source, and where the state will get the capital," said Barry Broome, president and CEO of the Greater Phoenix Economic Council.
An intelligent transition is needed from carbon footprint to renewable footprint, including benefits to both the public and private utilities, he said.
As Chandler pursues new sources of solar energy, decisions from five out-of-state companies are expected by the first of the year. Of the five, two are based in Europe, two in China and one in North America, Broome said.
Metro Phoenix is in competition for one company with Austin, two with Portland and two with Albuquerque.
Arizona may have already lost one of those to Portland, said Christine Mackay, Chandler's director of economic development.
"We think we've lost a German company to Oregon," she said. "The last we heard, they were favoring Portland."
However, Arizona is attempting to raid Oregon of some existing companies. Arizona is trying to capitalize on "a lot of disillusionment" with Oregon's promises of financial incentives that haven't been delivered, Chandler Mayor Boyd Dunn said.
The five solar companies due for imminent decisions are considering not only Chandler but also Tempe, Phoenix, Goodyear and Surprise.
"Chandler is going to do very well (in the competition) because of its Price Road high-tech manufacturing corridor," Broome said.
Chandler's also popular because of quality of life, schools, city management and livability.
However, solar companies like the West Valley because of the wide-open spaces, new rail access and its proximity to Interstate 10, California and existing concentrated solar-power installations.
Many authorities believe Arizona would not even be in the running had the state Legislature not adopted Senate Bill 1403. The law provides a 10 percent investment-tax credit and as much as an 80 percent reduction in property taxes for renewable-energy equipment factories and headquarters. Based on high-wage jobs and large capital investments, companies can receive reduction in property taxes for eight to 15 years.
"Prior to that bill, we were no longer looked at seriously by the industry," Broome said. "It's not the most aggressive incentives, but it's pretty good one and allows us to build a case."
Mackay said the tours she has given solar companies have increased threefold since SB 1403 passed.
Even though Austin, Albuquerque and Portland have more aggressive incentives than does Arizona, but Arizona has more long-term potential to be a large solar market, Broome said.
Before the companies commit to metro Phoenix - or anywhere - the credit market needs to improve, and the Dow's reaching 10,000 is a good sign, Broome said.
Next week, Mackay, Dunn and other representatives of Arizona are going to Anaheim, Calif., to an international trade show on solar power.
A number of meetings are scheduled, Mackay said.
Meanwhile, she and Broome said they would be happy to get just one out-of-state company to commit.
"Like Christmas morning, we just want to get it open," Mackay said. "There is formidable competition."
Broome said, "Getting one would be a good first step."
Not only are out-of-state companies considering Arizona, but also a number of Valley solar businesses that want to expand are looking at Chandler and other metro Phoenix cities.
"We've probably toured somewhere between eight and 10 just in the last two months alone," Mackay said.
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