Access to Industry
- Abengoa, Albiasa, Bright Source, First Solar, Iberdrola, NRG and Stirling Systems (2.2 GW) have committed to build utility scale renewable energy projects within 3 hours of Yuma.
- Arizona is ranked #3 for Solar (Solar Foundation)
- 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)
- Arizona has created 4,800 jobs within the solar industry
Research and Development
Arizona Western College Solar Array Testing Site
- 5 megawatts makes this the single biggest solar installation at a U.S. college or university
- 4.995 megawatts—new installation
- 105.6 kilowatts—existing rooftop array at AWC
- Five (5) proven solar technologies will be tested against thirty (30) new technologies for quick access to market
- NREL is the Solar Monitoring clearinghouse that will control data feed
- Planned deployment: eastern and southern areas of main campus (300+ acres)
- Participating companies include:
< Sun Tech
< Green Volts, Inc
< Solar World
- Occupational certificates offered in:
- Solar Installation
- Solar Maintenance
- Associate’s of Applied Science in Solar Technology
- Student and faculty access to AWC Solar Array Testing Site for on on-site learning
- Lowest labor cost in Mountain West region
- Access to major markets: Low-cost, low-regulation alternative well-positioned to service the California market
- Right to work state
- Minimal Regulation
- National Renewable Energy Laboratory (NREL): ranks AZ best for potential solar capacity
- 321 sunny days per year
- Yuma has an annual Direct Normal Solar Radiation of 7.0 to 7.5 kWh/m
- Large tracts of land near transmission
City of Yuma Economic Development Incentive Fund
The City of Yuma has created a performance based incentive fund designed to encourage new business development, business expansions and relocations. The fund can provide up to $1,500 per new hire, given to the company in an upfront cash grant award.
City of Yuma Real and Personal Property Tax Abatement
The City of Yuma will support and agree to property tax abatements for companies creating new jobs above the County median wage ($12.12/hr) along with a capital investment to exceed $1 million and per the approval of the City Council. The duration of the abatement will be predicated upon the overall economic impact of the project.
Workforce Salary and Training Grant
YPIC offers programs that cover the entire costs of employee training, Including teaching, materials, equipment and other expenses. Companies can additionally qualify for reimbursement of 50% employee salaries paid during training for up to 6 months.
New Market Tax Credits
Below market interest loans guaranteed by federal government for the purpose of stimulating development in rural communities. The loan is valued at 15% of the total project cost. Companies utilizing New Market Tax Credits pay on the interest only of the loan for seven years. After the 7th year, the loan is forgiven and the company is awarded the principal and equity of the loan.
|U.S. Cities||Yuma||Phoenix||Tuscon||Los Angeles|
|Assemblers & Fabricators||$9.07||$13.72||$9.50||$12.81|
|Source: BLS, May 2010|
Solar Manufacturing Jobs
Click to download
Arizona Solar Center
Arizona Solar Energy Industries Association
Education and Training
Arizona Western College
- Alternative Energy Education
Partnership provides industry training in engineering subjects related to green energy.
Arizona State University
- Solar Initiative
- Global Institute of Sustainability
- NanoFab foundry
- National Center of Excellence on Smart Innovations
- Arizona's Renewable Portfolio Standard (RPS) demands 15% of the states energy fro renewable sources by 2025
- California’s Renewable Portfolio Standard (RPS) is the nation’s most aggressive requiring 33% by 2015
- Arizona has the most aggressive “Distributive Generation” standard in the U.S., requiring 30% of renewable energy come from small scale sources
- To meet RPS, utilities are offering rebates and incentives to promote growth
Renewable Energy Policies
- Arizona’s Renewable Energy tax Incentive Program:
- Refundable tax credit for up to 10% of total investment
- 75% Reduction of property taxes for up to 15 years
- Renewable energy equipment is assessed at 20% of its depreciated value for tax purposes
- Arizona provides a sales tax exemption for the retail sale of solar energy devices.
- State tax credits for installation and production
- Yuma County permitting for utility scale solar projects is less than 60 days
- Interstate 8 and Highway 95
- Highway 195
- Yuma International Airport – L.A. and Phoenix
- San Luis Commercial and Private Ports of Entry provide access to Mexican markets
INCENTIVES FOR SOLAR INDUSTRY
The Quality Jobs through Renewable Industries program is designed to stimulate new investments in manufacturing and headquarter operations of renewable energy companies, including solar, wind, biofuel, geothermal and other renewable technologies. It is designed to generate net new revenue to the state. The benefits include:
- Transferable corporate income tax credit.
- Real and personal property tax reduction.
Commercial/Industrial Solar Energy Tax Program - This program subsidizes the initial cost of solar energy devices. The tax credit is equal to 10% of the installed cost of the solar energy device not to exceed $25,000 in credits for one building in a single tax year and $50,000 total credits per business per tax year. Tax credits can be used to offset Arizona income tax liability; any unused credit amounts can be carried forward for a five-year period.
Energy Equipement Property Tax Exemption- Arizona's property tax can be used for sloar energydevices and any other device system designed for the production of soar energy for on-site consumption. It can also be used to include other renewable energy technologies, as well as combined heat and power systems, and energy efficient building components.
Property Tax Assessment for Renewable Energy Property - Renewable energy equipment owned by utilities and other entities operating in Arizona is assessed at 20% of its depreciated cost for the purpose of determining property tax.
Solar and Wind Equipment Sales Tax Exemption - Arizona provides a sales tax exemption for the retail sale of solar energy devices and for installation of solar energy devices by contractors.
Renewable Incentive Program - Arizona Public Service offers customers who install various renewable energy sources the opportunity to sell the credits associated with the energy generated to APS.
- Grid-tied residential PV: $3/watt DC, adjusted based on expected performance; No system size limit.
- Grid-tied non-residential PV: $2.50/watt DC; or commercial customers may opt for a production-based incentive (PBI) on a 10-, 15- or 20-year contract.
- Off-grid residential PV: $2/watt DC; System must be less than 5 kW.
- Off-grid non-residential PV: $1.50/W or PBI