Is New Mexico the new hotspot for striving solar startups? Austin-based Solar Array Ventures seems to think so. The company has waved off Texas and New York's advances to take New Mexico officials up on their offer to build its plant there.
The company is planning to build a 225,000-square-foot solar plant with the capacity of 75 megawatts, but with the potential for more, said CEO Joe Hudgins.
Solar Array Ventures is the offspring of the Austin University Technology Incubator and has Oxantium as the lead equity investor. After being courted by seven states (Texas and New York among them), the company last week made it clear that it will build a $210 million solar panel manufacturing plant in Bernalillo County, N.M.
Solar Array had its reasons for choosing New Mexico for its future plant. Hudgins pointed to the speed and efficiency of the economic development group as well as to existing policies, incentives and positive business mindsets as reasons for the move. Other arguments were wage rates and quality of life, according to Hudgins.
"We are totally happy with our decision and look forward to breaking ground. We have selected Hoffman as our Construction firm. Our Architectural and Engineering firm is Page Southerland Page. We are 80 percent through the design and engineering phase for a campus site with a potential output of about 300 megawatts," said Hudgins.
Although Solar Array wants to build a factory, a lot can happen. The solar power market is already competitive with companies scrambling for capital. Stimulus money will, of course, help, but it won't cover all of the costs. Any startup aiming for a good industry reputation needs to put its name out on the market. Some solar analysts and experts contacted for this article said that they had never heard of Solar Array Ventures. Being in a startup phase means that you can't give any warranties on future success. But it sure helps to have the buzz going for you.
When asked about the incentive investment from New Mexico, Hudgins declined to give any numbers, but did admit that: "It was financially comparable to one other offer."
Production will start in the middle of 2009 or possibly in the third quarter, said Hudgins. The first panel will be out eleven months after the factory opens. The basis of the technology, said Hudgins, is Amorphous silicon (a-Si) and the somewhat vague: "access to technology that is not commercially available to raise the efficiency and lower the cost faster than other comparable a-Si based processes."
According to Solar Array, its multi-junction thin-film panels have a 40 percent to 60 percent lower temperature coefficient and give better power output in low-sun and overcast conditions compared to crystalline solar modules.
Potential customers are utility companies, medium-sized integrators and "a large anchor customer, primarily utility." The Austin American-Statesman reported that the solar startup was not satisfied with the offer from Texas when it came to investing in the project.
"New Mexico made us a reasonable offer and allowed us to go to our investors. In Texas, it was more like, 'Get your funding and then come see us,' " said Solar Array Chief Financial Officer Everett "Buddy" Rodgers in an interview with the Austin American-Statesmen.
When Solar Array went fishing for plant space earlier this year, the estimated need was 250,000 square feet for the plant, employing about 250 people in the initial phase. Senator Charles Schumer of New York pushed the idea of Solar Array placing its plant in Riverview Business Park in Fulton, N.Y., but was beaten by New Mexico officials who, according to the Austin American-Statesmen, had been working hard to catch the interest of Solar Array Ventures.
"Our commitment to this industry and dedicated effort to this company over the past 18 months made today's announcement possible," said Deanna Archuleta, chair of the Bernalillo County Commission, to the Austin American-Statesmen.
