The Solar and Wind Energy
Supply Chain in Michigan
Good for Manufacturing Jobs • Good for Economic Growth
Good for Our Environment
At a Glance:
Wind and Solar Energy Supply Chain in Michigan
• 121 solar power supply chain businesses
• 120 wind power supply chain businesses
• Old line manufacturing companies are re-tooling to
make renewable energy equipment for growing markets
Cumulative Renewable Energy Capacity in Michigan (Megawatts)
700
600
500
400
300
200
100
0
2009
2010
2011
2012
Source: Michigan Public Service Commission, Report on the Implementation of the
P.A. 295 Renewable Energy Standard Feb. 2011
authors:
PHOTO CREDITS:
Ashley Craig, Environmental Business Specialist
Howard Learner, Executive Director Peter Gray, Communications Associate
Cover: Solar array at Dow Corning Headquarters, Midland, courtesy of Dow Corning (top); Utility worker, courtesy of Traverse
City Light and Power (left); Wind farm, courtesy of Nordex; Student in lab, courtesy Michigan Technical University.
P.6: Solar assembly robot, courtesy Fanuc Robotics; P. 7 Hemlock Semiconductor Headquarters, courtesy of Hemlock
Semiconductor, Flexcharge energy controls at use in Antarctica, courtesy of Seelye Equipment Specialists; P. 8: Wind farm,
courtesy of Nordex; P. 9 Low-profile turbine, courtesy of Michigan Wind Power; P. 10: Thin film solar cells, courtesy of National
Renewable Energy Laboratory (NREL); P. 11: Rooftop solar array, courtesy of Michigan Solar and Wind Power Solutions; P. 12:
Solar installer, courtesy of Wayne National Forest.
Back Cover: Wind turbine worker, courtesy of Clipper Windpower (left); Wind turbine installation, courtesy of Traverse City
Light and Power (center); Battery researchers, courtesy of NREL (right).
Protecting the Midwest’s Environment and Natural Heritage
ELPC.org
March 2011© All rights reserved. Full reproduction permitted.
This report can be downloaded at: www.elpc.org/michiganenergy.
ELPC requests acknowledgment, in print, on any information or excerpts reproduced in another publication.
Powering Manufacturing Jobs and
Economic Growth in Michigan
Michigan is home to nearly 200 solar and wind supply chain companies (over 50 of which supply
to both industries) with more than 4,000 jobs tied to the wind industry and 6,300 to the solar industry.
Clean tech is the state’s fastest growing sector, with $10 billion in announced clean energy development
investments in the pipeline. The state ranks fourth in the nation for number of jobs in the solar industry
and first for clean energy patents. Some of the primary drivers of Michigan’s job growth in the wind and
solar industry include:
• Renewable Portfolio Standard. In 2008, Michigan enacted its first Renewable Portfolio Standard (RPS)
requiring that 10% of the utilities’ electricity supply come from renewable energy sources by 2015. The expanded
renewable energy market has created more opportunity for equipment manufacturing in Michigan.
• Established Industrial Manufacturing Base. Michigan’s manufacturing base has begun to respond to the
national demand for wind and solar components.
• Skilled High-Tech Workforce. Michigan has a trained high-tech workforce accustomed to manufacturing,
and many of the skills available in the state are consistent with those needed to address the demand from the
renewable energy industry.
• Clean Energy Advanced Manufacturing Grants. Michigan’s Department of Energy, Labor, and Economic
Growth issued $39.3 million in grants and loans using American Recovery and Reinvestment Act funds to promote
private industry diversification into renewable energy and energy efficiency sectors.
• Leading Research and Development Spending. Michigan businesses spend over $15 billion a year in
R&D spending, ahead of any other state, per dollar of gross state product. Michigan developed a strategic partnership
with Oak Ridge National Laboratory to give companies access to its alternative energy and materials research.
• Strong University Base for Clean-Tech Expertise. With over 6,500 engineering degrees awarded each
year, Michigan ranks fourth in the country for engineering graduates. Over a dozen Michigan universities and colleges
have clean tech research programs or active renewable energy projects.
• Targeted Supply Chain Development. In 2006, the state and the Michigan Economic Development
Corporation (MEDC) completed a comprehensive renewable energy supply chain assessment and began helping
existing manufacturing companies that could quickly diversify into the wind and solar industries. MEDC focused on
educating potential suppliers on the industries, facilitating matchmaking with wind and solar original equipment
manufacturers (OEMs) and Tier 1 suppliers, providing industry training and supporting manufacturing and
innovation through the Centers of Energy Excellence program.
• Centers of Energy Excellence. In 2008, the MEDC created the Centers of Energy Excellence (COEE), a
$45 million program financed by the 21st Century Jobs Fund that creates “cluster teams” and provides grants to forprofit companies that are commercializing innovative energy technologies with support from a university. Energetx
Composites, Astraeus Wind Energy, and Dow Corning have leveraged millions in funding through COEE designations.
• Business Incentives. Michigan has used several incentives including business tax credits for supply chain
development and work force expansion, as well as renewable energy renaissance zone designations.
All of these programs and investments have helped create jobs in Michigan. With an established and growing
supply chain and supportive RPS, Michigan is well positioned to increase installed capacity for both wind and solar
generation. The solar and wind industries mean real jobs and real economic opportunity for Michigan.
1
Solar and Wind Industry Supply Chain
Companies in Michigan
The growing market for wind and solar power has spurred business growth and job creation across Michigan.
Michigan companies are leaders in supply chain integration and simulation-based manufacturing. The state’s hightech workforce and robust scientific community have enabled Michigan companies to become major suppliers to the
expanding wind and solar overall markets.
Upper Peninsula
Solar
Wind
63
2
78 71
Solar and Wind Industry Supply Chain
Companies in Michigan
Ann Arbor
Grand Rapids
Detroit
Saginaw - Midland
Howell
3
Michigan Solar Industry Supply Chain Companies
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Company Name
City
Patriot Solar Group (I)
BioGreen Technologies (I)
IPR Sohner Plastic (C)
Orisol Energy (I)
Shepherd Advisors (S)
SUR Energy Systems (I)
ABB University (S)
United Solar Ovonic (C)
Mersen USA (C)
B's Electric (I)
Kinetik Partners (S)
Stahlin Non-Metallic Enclosures (C)
Turtle Island Wind & Solar (I)
The Green Panel (I)
D&R Energy Services (I)
Fronius USA (C)
Power Distribution Center (I)
Adaptive Manufacturing Solutions(C)
Lotus International (C)
Mechanical Energy Systems (I)
Yazaki North America (C)
Guardian Glass (C)
Seelye Equipment Specialists (C)
Renewable Energy Solutions (I)
Michigan Solar & Wind Power
Solutions (I)
Contractor's Building Supply (I)
Automation & Modular Comp. (C)
Sunsiaray (I)
Carbon Credit Environmental
Services (I)
Motor City Electric (I)
NexTek Power Systems (C)
Power Panel (C)
W Industries (C)
Walker Miller Energy Services (S)
K-Space (C)
Alternative Energy Solutions
Integrated (I)
Skyline Electrical Contracting (I)
RLS Energy (I)
Paradigm Energy Services (S)
Ort Tool & Die (C)
Kravis Electric & Controls (I)
American EcoEnergy (I)
Mid Michigan Solar (I)
FCB Solar (I)
Jan Watercraft Products (C)
Burke E. Porter (C)
Cascade Renewable Energy (I)
Coffman Electrical Equipment (C)
Eaton Corporation (S)
Robinson Cartage (S)
RoMan Manufacturing (C)
Hot Watt Solar (I)
Basic Solar & Renewables (I)
SPM Windpower (I)
Hemlock Semiconductor (C)
ECO-Wind-Solar Solutions (I)
Marelco Power Systems (C)
Turbo Spray Midwest (C)
ESPEC North America (C)
Miller Tool & Die (C)
Chambers Contracting & Renewable
Energy (I)
Albion
Ann Arbor
Ann Arbor
Ann Arbor
Ann Arbor
Ann Arbor
Auburn Hills
Auburn Hills
Bay City
Bay Port
Berkley
Belding
Berrien Center
Brighton
Brighton
Brighton
Brighton
Burton
Canton
Canton
Canton
Carleton
Charlevoix
Chelsea
Commerce
Copemish
Davisburg
Davison
Detroit
Detroit
Detroit
Detroit
Detroit
Detroit
Dexter
Eastpointe
Eastpointe
Eaton Rapids
Ellsworth
Erie
Farmington Hills
Flint
Flint
Grand Haven
Grand Haven
Grand Rapids
Grand Rapids
Grand Rapids
Grand Rapids
Grand Rapids
Grand Rapids
Harrison Twp.
Hastings
Hastings
Hemlock
Holland
Howell
Howell
Hudsonville
Jackson
Kalamazoo
62.
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Company Name
City
Dynamic Engineering (C)
Alternative Electric (I)
TG Renewable Technologies (I)
Bond Solar Ventures (I)
Four Elements Energy (I)
Tower Automotive (C)
Rauhorn Electric (I)
McNaughton-McKay Electric (C)
Sustainable Systems (I)
Lean, Clean Energy Services (S)
ADCO Products (C)
Currin Corporation (S)
Dow Chemical (C)
Dow Corning (C)
Fulcrum Composites(C)
Best Electrical/Independent Ener.(I)
PrimeStar Solar (C)
Aeolus Energy Systems (I)
J. Ranck Electric (I)
Kaydon Bearing Division (C)
Newkirk Electric (I)
Homeland Builders of Michigan (I)
Novi Energy (S)
Southern Exposure Renewable
Energy Company (I)
Warneke Tool (C)
Rofin-Sinar (C)
Eco-Friendly Contracting (I)
Steel Industries (C)
Bosch-Rexroth (C)
FANUC Robotics America (C)
Luma Resources (C)
Vos Energy Concepts (I)
Green Wire Systems (I)
Howard & Howard Attorneys (S)
GlobalWatt (I)
Energy Components Group (C)
Genesis Energy Alternatives (I)
Shelby Solar & Wind (I)
Solar Winds Power Systems (I)
Comau (C)
J. King Solar Technologies (I)
Fata Automations (C)
KUKA Robotics (C)
Bay Energy Services (I)
Fairfax Electric (I)
Suniva (C)
J.D. Stratton Electric (I)
Windemuller (I)
Cosma International (C)
EOS Technologies (C)
Ricardo (S)
Evosolar (I)
RESco Energy (S)
Oak Electric (I)
Bauer Power (I)
Phoenix Environmental (I)
Solar Works (I)
Clairvoyant Energy (C)
Wixom Renewable Energy Center(C)
CRESIT (I)
Kalamazoo
Lansing
Lansing
Lapeer
Lawrence
Livonia
Macomb
Madison Heights
Manchester
Marquette
Michigan Center
Midland
Midland
Midland
Midland
Monroe
Montague
Mount Clemens
Mt. Pleasant
Muskegon
Muskegon
Novi
Novi
Ortonville
Oxford
Plymouth
Portage
Redford Twp.
Rochester Hills
Rochester Hills
Rochester Hills
Rockford
Royal Oak
Royal Oak
Saginaw
St. Clair
Saline
Shelby
Shelbyville
Southfield
Southfield
Sterling Heights
Sterling Heights
Suttons Bay
Taylor
Thomas Twp.
Traverse City
Traverse City
Troy
Troy
Van Buren Twp
Warren
Warren
Waterford
Wayland
Whitmore Lake
Whitmore Lake
Wixom
Wixom
Wyandotte
Michigan Wind Industry Supply Chain Companies
Company Name
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City
ATI Casting Services (C)
Aernnova (C)
BioGreen Technologies (I)
NSK Corporation (C)
Orisol Energy (I)
Shepherd Advisors (S)
SUR Energy Systems (I)
ABB University (S)
Dokka Fasteners (C)
Gougeon Brothers (C)
Kerkau Manufacturing (C)
Williams Form Engineering (C)
Kinetik Partners (S)
Turtle Island Wind & Solar (I)
Quaker Chemical (C)
D&R Energy Services (S)
Power Distribution Center (T)
Adaptive Manufacturing Solutions(C)
Capline Systems (I)
Great Lakes Heavy Haul (S)
CMS North America (C)
Danotek Motion Technologies (C)
Great Lakes Gear Technologies (S)
K&M Machine (C)
Seelye Equipment Specialists (C)
Michigan Solar & Wind Power
Solutions (I)
Three-M Tool & Machine (C)
Thomas Industrial Rolls (C)
Wastenotbiz (S)
Carbon Credit Environmental
Services (I)
Motor City Electric (I)
NexTek Power Systems (C)
Walbridge (S)
W Industries (C)
Walker Miller Energy Services (S)
Alternative Energy Solutions
Integrated (I)
Astraeus Wind Energy (C)
Axson North America (C)
Dowding Industries (C)
RLS Energy (I)
URV USA (C)
Ort Tool & Die (C)
Mahle Industries (C)
Creative Foam Composite System(C)
Seeger-Orbis (C)
Franklin Wind Energy Group (I)
FCB Solar (I)
ETM Enterprises (C)
Betz Industries (C)
Burke E. Porter (C)
Carter Products Company (C)
Cascade Renewable Energy (I)
Eaton Corporation (C)
Robinson Cartage (S)
Rockford Berge (S)
Lake Effect Energy Corporation (I)
Michigan Wind Turbine & Tower(T)
Basic Solar & Renewables (I)
Key C=Components
Alpena
Ann Arbor
Ann Arbor
Ann Arbor
Ann Arbor
Ann Arbor
Ann Arbor
Auburn Hills
Auburn Hills
Bay City
Bay City
Belmont
Berkley
Berrien Center
Bingham Farms
Brighton
Brighton
Burton
Burton
Byron Center
Caledonia
Canton
Canton
Cassopolis
Charlevoix
Commerce
Commerce Twp.
Dearborn
Dearborn
Detroit
Detroit
Detroit
Detroit
Detroit
Detroit
Eastpointe
Eaton Rapids
Eaton Rapids
Eaton Rapids
Eaton Rapids
Eaton Rapids
Erie
Farmington Hills
Fenton
Frankenmuth
Franklin
Grand Haven
Grand Ledge
Grand Rapids
Grand Rapids
Grand Rapids
Grand Rapids
Grand Rapids
Grand Rapids
Grand Rapids
Harbor Springs
Harbor Springs
Hastings
I=Installers 59.
60.
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117.
118.
119.
120.
Company Name
City
SPM Windpower (I)
ECO-Wind-Solar Solutions (I)
Energetx Composites (C)
Genzink Steel (C)
Systems Control (C)
Great Lakes Industry (C)
Miller Tool & Die (C)
Demmer Corporation (C)
TG Renewable Technologies (I)
Lapeer Industries (C)
Four Elements Energy (I)
Wind Power Services (I)
Aristeo (C)
Ideal Fabricators (C)
Visotek (C)
Mackinaw Power (I)
Diversified Tooling Group (C)
McNaughton-McKay Electric (C)
RLE International (C)
Lean, Clean Energy Services (S)
Maybee Wind (T)
Dow Chemical (C)
Dow Corning (C)
Best Electrical/Independent Ener.(I)
VenTower Industries (T)
Aeolus Energy Systems (I)
Kaydon Bearing Division (C)
Newkirk Electric (I)
Citation Corporation (C)
Homeland Builders of Michigan (I)
Nabtesco Motion Control (C)
Novi Energy (S)
Barton Malow (I)
Phoenix Composite Solutions (C)
Loc Performance Products (C)
Eco-Friendly Contracting (I)
Steel Industries (C)
ADCO Circuits (C)
Bosch-Rexroth (C)
Gates Corporation (S)
Howard & Howard Attorneys (S)
Energy Components Group (C)
Unimerco (C)
Merrill Technologies Group (C)
Northern Power (T)
Comau (C)
McHugh Composites (C)
MAG Industrial Automation (C)
MasTech (C)
J.D. Stratton Electric (I)
Heron Wind Manufacturing (T)
Michigan Wind Power (I)
Windemuller (I)
EOS Technologies (C)
LMS North America (C)
Ricardo Inc. (S)
Hotz Development (I)
Oak Electric (I)
Bauer Power (I)
Phoenix Environmental (I)
Solar Works (I)
Wolverine Power Systems (I)
Hastings
Holland
Holland
Holland
Iron Mountain
Jackson
Jackson
Lansing
Lansing
Lapeer
Lawrence
Leroy
Livonia
Livonia
Livonia
Lowell
Madison Heights
Madison Heights
Madison Heights
Marquette
Maybee
Midland
Midland
Monroe
Monroe
Mount Clemens
Muskegon
Muskegon
Novi
Novi
Novi
Novi
Oak Park
Oscoda
Plymouth
Portage
Redford Twp.
Rochester Hills
Rochester Hills
Rochester Hills
Royal Oak
St. Clair
Saline
Saginaw
Saginaw
Southfield
Stanwood
Sterling Heights
Sterling Heights
Traverse City
Traverse City
Traverse City
Traverse City
Troy
Troy
Van Buren Twp.
Warren
Waterford
Wayland
Whitmore Lake
Whitmore Lake
Zeland
S=Services T=Turbine Manufacturer/Sales
Michigan: A Leading Supplier to the
Solar Industry
ELPC identified 121 companies in the Michigan solar supply chain. Michigan is home to
sealant manufacturers and robotics suppliers, as well as the world’s largest manufacturer of
polycrystalline silicon.
ADCO
Products, Michigan Center,
energy manufacturers and suppliers, we offer
intelligent robotic solutions for the associated
manufacturing processes, including customtailored solutions for robotic solar assembly,”
stated Mike Cicco, General Manager of
Material Handling at FANUC Robotics America
Corporation. “We combine robots, software
and controls with a support and integration
has more than 40 years of experience in the
production of adhesive and sealant materials.
The company supplies high-performance
adhesives, sealants, and tapes to a variety of
markets, including solar module assembly,
construction,
and
automotive
original
equipment manufacturers. ADCO produces a
line of distinct sealants, adhesives and primers
for solar modules.
ADCO’s $17.3 million
expansion at its Michigan plant was supported
by a $1.2 million tax credit from the state. The
company also received a 12-year tax abatement
on its real and personal property. In return,
ADCO will bring more than 200 jobs to Michigan.
ADCO exports its products and solar solutions
to many locations throughout the world.
network to help manufacturers reduce costs,
improve quality and increase their competitive
position in the global market.”
The
Green
Panel, Brighton, is a
Michigan-based turnkey solar PV company that
designs, engineers, furnishes, and installs solar
photovoltaic systems throughout the Midwest.
The company has 20 employees and is one of
the largest solar suppliers in Michigan, with
close to one megawatt of installed capacity.
FANUC Robotics America, Rochester
Hills, was founded in 1982 and is the leading
supplier of industrial robots with over 100,000
installed in factories in the Americas and
220,000 worldwide. “To address the growing
demands of North America’s alternative
“Solar development in Michigan does create
jobs, and has done so for us. Solar is homegrown Michigan energy and if we can locally
source the $20 billion in energy Michigan
currently imports, more Michigan jobs can be
created. With an aggressive renewable energy
plan, we could expand renewable generation
and employ more Michiganders in this industry,”
commented Mark Cryderman, Director of
Education and Business Development for The
Green Panel.
Hemlock Semiconductor, Hemlock,
6
was founded 50 years ago by Dow Corning,
which is now majority owner of the company.
Hemlock is the world’s largest manufacturer of
polycrystalline silicon used in the manufacturing
of solar cells and modules. Over the past five
years, Hemlock has announced investments
totaling $4.5 billion to add to its polycrystalline
silicon manufacturing capacity, $2.5 billion of
which will be invested in Michigan creating
1,500 additional jobs.
vacuum furnaces for manufacturing the actual
photovoltaic cells, and manufacturing the cover
glass for solar panels and cells. RoMan also
manufactures high current switch gear, which
the company is in the process of marketing to
the alternative energy industry. RoMan exports
27% of its production worldwide, up from
under 5% seven years ago.
Seelye
Equipment
Specialists
(SES), Charlevoix, is the manufacturer of
Patriot
Solar
Flexcharge high-efficiency alternative energy
system controllers. SES has been in business
since 1967 and has been designing and
manufacturing Flexcharge products since
about 1990. SES manages its own wholesale
distribution to dealers in a worldwide market.
Flexcharge controllers are designed to be
exceptionally efficient and durable with a
unique patented charge process, controlling
and helping protect alternative energy systems’
battery banks and loads using PV arrays or
permanent magnet type charging sources.
Flexcharge systems are used for solar arrays
and wind systems in Antarctica, street lighting
in Iraq and seismic monitoring sites over North
America. SES is active in the commercial,
industrial and research markets, as well as
marine and residential systems.
Group,
Albion,
manufactures standard and heavy-duty solar
trackers as well as fixed pole and ground
mounts. Patriot currently has 15 employees,
but plans to expand to at least 60 employees,
in response to growing demand. The company
is gaining increased orders in Michigan and
throughout the United States. “We are seeing
higher sales volumes in ground mounts and
tracking systems from both industrial and
commercial customers,” explained Edward
Stuart, account manager at Patriot Solar Group.
RoMan Manufacturing, Grand Rapids,
is a leading manufacturer of special watercooled transformers, DC power supplies,
inverter power supplies and accessories. The
company has 100 employees at its Grand Rapids
facility and 25 in Livonia. RoMan supplies both
AC and DC power sources for several parts of the
polysilicon industry. Some of the applications
are growing crystals used to manufacture
solar photovoltaic cells and LEDs, heating the
7
Michigan: A Leading Supplier to the
Wind Industry
ELPC identified 120 companies in the Michigan wind industry supply chain. Michigan is
home to turbine assemblers and component manufacturers, and also to process engineering
consultants, composite manufacturers and small wind developers.
Astraeus Wind Energy, Eaton Rapids,
A large percentage of the company’s business
is from the wind industry, where it currently
supplies composite applications for nacelles,
spinners and wind turbine blades. Energetx has
recently established a Master Supply Agreement
with Aeroblade to become its North American
manufacturing partner. Its first blade will be
is a partnership of Dowding Industries and
MAG Industrial Automation. The group is
working to develop new technologies to resolve
costly industry bottlenecks and improve the
manufacturing process for wind industry
components. MAG designs and develops the
machinery and Astraeus serves as the machining
service provider, using the MAG-developed
equipment. Astraeus has received two grants
to improve the technology used for the turbine
hub and for the blade spar cap.
Energetx
Composites, Holland,
was founded in 2008 and is a composite
manufacturing company focused on the
renewable energy, transportation, defense and
aerospace markets. Energetx is a spin-off of S2
Yachts, a luxury yacht manufacturer with over 50
years of experience in composite manufacturing.
a 45.3 meter IEC Class IIa wind turbine blade
going into production in Summer 2011.
“The wind industry has created a tremendous
opportunity for companies such as ourselves
who are utilizing our core capabilities and
expanding into other industries,” commented
Kelly Slikkers, VP of Business Development for
Energetx Composites.
Gougeon Brothers, Bay City, started in
1969 as an iceboat builder and expanded into
marine-grade epoxies used around the world
in boat building and boat repair. The company
employs in-house chemists, who formulate
epoxies to withstand harsh ocean environments.
Gougeon diversified its applications into
architectural restoration, high-tech aircraft,
spacecraft and, most recently, wind turbine
blade construction and repair.
Most of
Gougeon’s clients are in neighboring states, but
the company is experiencing growth in in-state
demand as more wind development is coming
on line in Michigan.
Michigan Wind Power, Traverse City,
8
is a developer of small wind projects and has
five years’ experience installing wind power
systems most suitable for residential and light
commercial use. The company has completed
over 40 such installations. Michigan Wind Power
designed and installed the largest concentration
of small wind units in the United States at the
marina in Mackinaw City along Lake Michigan.
The 8 low profile turbines have a capacity of
about 20 kilowatts and provide energy to keep
the docks free of ice. “Small wind has a great
deal of potential in Michigan, provided we can
expand the infrastructure and educate residents
on the new technologies available to them.”
commented Garth Ward, Michigan Wind Power
founder, “Policies, including consistent zoning
requirements, could go a long way to encourage
more small wind development, which will relate
directly to Michigan’s job growth.”
1971.
The company recently changed its
focus from the automotive industry to the
wind industry. In 2007, Three-M won a fiveyear contract to produce gearbox housings for
Clipper Windpower and with the help of the
Oakland County Economic Development Council
borrowed $11 million to purchase a 42,000
square-foot building in Wixom in order to meet
the additional demand. The company will
invest $8.5 million in new machinery, including
one of the largest coordinate measuring
machines in the Western Hemisphere. The
company is machining prototype castings
for a European gearbox manufacturer and
smaller wind generators for an American wind
manufacturer. “The wind industry has provided
an opportunity for us to grow and hire as many
as 20 additional employees,” commented Mike
Medwid, President of Three-M.
URV USA, Eaton Rapids, received a Center
Three-M Tool and Machine, Commerce
Township, has been manufacturing tools and
components for a number of industries since
of Energy Excellence (COEE) designation and
grants of $7.5 million from the State of Michigan
to build a new high-tech 80,000-ton foundry.
URV will produce heavy castings for wind
turbine OEMs, and develop the next generation
of casting materials, in collaboration with
Oak Ridge National Laboratory and Michigan
Technological University. URV is scheduled to
begin construction on this foundry in the spring
of 2011. The company is currently importing
these components to the U.S. from its Nordic
foundries and will transfer the technology
and orders to Eaton Rapids in 2012. “This
new Michigan foundry will provide largescale casting solutions for top quality turbine
components across the U.S., providing a local
and competitive source for our North American
turbine manufacturers seeking ease of logistics
and high quality components,” reported Blaire
H. Miller, Executive Vice President of URV USA.
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Businesses Working in Both the
Wind and Solar Industries
Some Michigan companies are applying their expertise across multiple renewable energy
technologies. ELPC identified more than 50 companies that supply to both the wind and solar
industries.
Cascade Renewable Energy, Grand
Rapids, manufactures, markets and distributes
renewable energy and energy efficiency
solutions tailored for residential, community
and commercial needs. Cascade Renewable
Energy (CRE), a division of family-owned
Cascade Engineering, is a distributor and
system integrator, supplying both the wind and
solar industries.
Since 2009, CRE has successfully installed
over 500 kW of solar photovoltaic systems
in Michigan alone. The company’s dedicated
engineering staff has integrated various
wind and solar technologies on its own main
campus, providing detailed data on a variety of
system designs. CRE also partners with other
companies to improve engineered components
in the renewable energy market, most recently
on a solar racking project.
Dow
Corning, Midland, has five
operational sites in Michigan with a total of
nearly 4,500 employees. Dow Corning (a joint
venture of Dow Chemical and Corning) focuses
on silicon atom technology and manufactures
silicone solar panel materials and other
applications. Dow Corning’s solar encapsulant
is used to make solar cells more efficient and
durable. Dow Corning silicone technology is
also used on the back end of solar electronic
components and as sealants. Dow Corning
is investing hundreds of millions of dollars
in Michigan to expand into manufacturing
monosilanes, a key raw material for thin film
solar applications. The company is a wind
supplier as well, providing sealants, lubricants,
R&D and materials to make turbines more
durable and effective.
Dow Chemical, Midland, is a diversified
chemical company that provides innovative
solutions to both the solar and wind
industries. Dow is preparing to launch the
Dow Powerhouse™ Solar Shingle, a residential
roofing product that protects a home and also
generates electricity. In 2007, Dow received a
$20 million grant from the U.S. Department of
Energy as part of its Solar America Initiative to
develop “building integrated” solar arrays for
the residential and commercial markets. Dow
also supplies heat transfer fluids, adhesives, and
films used by the solar photovoltaic industry.
In addition, the company has provided epoxy
resins and material solutions for use in various
wind power applications and epoxy system
solutions for the production of molds for blades.
Kaydon, Muskegon, has been supplying
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slewing ring bearings to the renewable energy
market for more than 20 years. The company’s
four- and eight-point bearings allow the turbine
blades to be indexed or positioned to optimize
blade angle, depending on wind speed. Kaydon
also supplies bearing solutions for solar panel
gear boxes and altitude-azimuth mountings,
which are used for commercial and industrial
building installations, large ground-mounted
solar systems and electrical utility projects.
countries such as Pakistan and Lebanon. MSS
has recently installed more than 250 kilowatts
of power in Michigan and has also completed
small wind and solar installations in neighboring
states. “We see a lot of growth opportunities
for renewable energy generation right here in
Michigan,” stated Mark Hagerty, President of
MSS. “With the right policies in place, Michigan
can encourage more distributed generation and
cleaner power development.”
Kinetik
Partners, Berkley, is a
marketing and technology strategic consulting
firm that works in collaboration with industry
and economic development organizations to
develop and execute growth strategies. Some of
Kinetik’s services include value chain analysis
and assessment, R&D and product innovation
strategy, and assistance with manufacturing
representation. Kinetik Partners helped develop
the wind energy business strategy for the
Michigan Economic Development Corporation,
which attracted wind energy value chain players
to the state and made over $40 million in grants
to support innovation and diversification.
“For Michigan companies to be successful
serving the growing renewable energy
sectors in the US and abroad, they must offer
innovation on new technologies, components
and manufacturing process...This is what these
industries need to lower the cost of energy
for renewable products and enable domestic
firms to be globally competitive” stated Dan
Radomski, Managing Director, Kinetik Partners.
Shepherd Advisors, Ann Arbor, is a
Michigan Solar & Wind Power
Solutions, Commerce, is a supplier of solar
and wind energy collectors and generators
for residential, commercial, industrial and
educational facilities. Michigan Solar & Wind
Power Solution (MSS) has eight employees and
supplies products including solar panels, solar
generators, batteries, pumps and pool heaters.
The company also works with the Export
Import Bank to ship American-made renewable
energy parts around the world, including solarpowered water pumping systems to developing
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management consulting firm that specializes
in growth consulting for clean energy
manufacturers, suppliers, generators and
developers. Shepherd Advisors also consults
with communities on energy management and
economic development strategies and helps
utilities build their clean energy portfolios.
“The clean energy opportunities for Michigan
are robust, especially as clean energy policy
drivers are strengthened,” said Loch McCabe,
President of Shepherd Advisors. “Over the next
couple of years, Michigan’s RPS will have led
to the installation of nearly 1,000 MW of new
renewable energy capacity. And Michigan’s
manufacturing sector is coming back leaner and
more diversified than ever before.”
Policy Makes the Difference
Federal and state policies are key to encouraging investment that can grow the wind
power and solar energy industries, and thereby create more jobs and economic growth.
Federal Policies
Production Tax Credit (PTC), Investment
Tax Credit (ITC) & 1603 Tax Credit: The PTC
offers a credit of 2.1 cents per kilowatt hour, which
is effective through 2012. Wind developers have
been able to take a 30% ITC in lieu of a PTC for
facilities placed into service before 2012 as long
as construction began before the end of 2010.
Through the Section 1603 Treasury Grant Program,
the ITC is convertible into a cash grant that helps
developers who do not have enough tax liability to
effectively utilize the tax credit. More than 2,400
megawatts of wind and solar power and 65,000
jobs were supported by the Section 1603 cash
grant program in 2009.
Federal Renewable Electricity Standard:
This proposed federal legislation would require
all electric utilities, which act as collective
power purchasing agents for consumers, to buy
a growing percentage of their electricity from
renewable energy resources. Creating a federal
renewable electricity floor would drive more
demand nationally and in Michigan for wind
and solar generated electricity. Michigan would
benefit through more job creation and economic
growth.
Qualifying Advanced Energy Manufacturing
Investment Tax Credit:
Through ARRA,
renewable energy manufacturers were able to
take a 30% Federal Investment Tax Credit. The
program expired in 2009 and should be considered
for renewal.
Accelerated Depreciation: Allowing wind
and solar generation assets to be depreciated over
six years can create additional value. However,
the depreciation credit may be hard for some
developers to use unless they can offset it with
significant income.
Residential Renewable Energy Tax Credit:
Homeowners can receive a personal income tax
credit for up to 30% of the cost of a solar thermal,
photovoltaic or wind system installed on their
primary residence. The credit expires in 2016
and is limited to $500 per 0.5 kilowatt of power
capacity.
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Michigan Programs & Policies
Anchor Jobs and Anchor District Credits:
The Michigan Economic Growth Authority
(MEGA) Anchor programs allow renewable energy
companies to claim a tax credit, if they are able to
influence qualified suppliers or customers to open,
locate or expand in Michigan. The Anchor company
must be a qualified high-technology business,
which includes businesses in the renewable energy
space. Hemlock Semiconductor is one example of
an anchor business.
Renewable Portfolio Standard: The Michigan
Standard was enacted in 2008 and requires 10% of
all electricity purchased by utilities in the state to
be generated by renewable technologies, including
wind, solar photovoltaic, solar thermal, and coal
plants with carbon sequestration. Utilities must
achieve 20% of the total requirement by 2012, 33%
by 2013, 50% by 2014, and 100% by 2015. Up to
50% of the standard can be met with RECs produced
by utility-owned facilities and the standard contains
a “bonus credit” system that incentivizes solar
generation, peak time production, energy storage,
and renewable energy produced using equipment
manufactured within Michigan and with an in-state
workforce. Also by 2015, utilities must meet an
additional 5.5% of Michigan’s annual electricity
demand through energy efficiency.
MEGA Job Creation Tax Credit: Companies
that manufacture solar systems or components,
or conduct R&D, can also earn business tax credits
by creating at least 25 new jobs within five years.
The jobs must pay at least 150% of the Federal
Minimum Wage and health care benefits may be
included as part of the wages.
Michigan’s two largest utilities - Detroit
Edison and Consumers Energy - have small pilot
programs that offer solar incentives for residential
and commercial customers. These programs have
played a critical role in driving consumer demand
for solar energy in Michigan and supporting job
development. Unfortunately, Consumers Energy
informed the Michigan Public Service Commission
in February 2011 that it does not intend to extend
its solar incentive program.
Detroit Edison
will announce its intentions later in 2011. The
Commission will make a final decision regarding
whether solar energy should continue to play a part
in the utilities’ RPS compliance plans.
Net Metering: Michigan’s net metering
standards enable small (<20KW) solar system
owners to earn credits at the retail electric rate for
excess power sent to the grid. Extending retail-rate
net metering to medium and large systems would
improve the economics for rooftop solar systems in
Michigan.
Next Energy Incentives: Certified “alternative
energy technology businesses,” which include R&D
or development of photovoltaic systems, can be
exempt from tax on personal property investments
until 2012. Additionally, a qualifying business can
reduce its business tax liability attributable to R&D
or the manufacturing of renewable energy.
Renewable Energy Renaissance Zones:
Qualifying businesses located in Renaissance Zones
for “renewable energy facilities” -- manufacturing
systems or components used in creating energy
with wind or solar or conducting related R&D -- are
virtually exempt from property, business and local
income taxes.
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Environmental Law & Policy Center
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ELPC’s vision embraces both smart, persuasive advocacy and sustainable development
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advocacy and business dealmaking involves proposing solutions when we oppose threats to
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ELPC was founded in 1993 and has achieved a strong track record of successes on national
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