BusinessTN

A study released in June by The Pew Charitable Trust identified Tennessee as one of the top three states in creating clean energy jobs and attracting investments in solar, wind and biofuel technologies. According to The Clean Energy Economy: Repowering Jobs, Businesses and Investments Across America, from 1998 to 2007, Tennessee's clean energy economy generated jobs seven times faster than the economy as a whole.

None of this surprises John Maros, vice president of Shoals Technologies Group, a privately owned manufacturer of solar components that relocated its headquarters from Muscle Shoals, Ala., to Portland, Tenn., earlier this year.

"The sun is shining brightly," he says, when asked to describe Shoals' business climate.

And he's not being glib. Shoals has been growing about 30% per year since 2004. The company brought about 60 jobs to Portland, with approximately 20 in management and 40 in production. He projects that, in three years, Shoals will employ 400 Tennessee workers. (The company also still owns a factory in Muscle Shoals, which employs about 200.)

Then Came the Sun
Shoals Technologies did not start out as a solar energy company. Its first factory opened in Muscle Shoals in 1996 to produce components for automotive HVAC actuators. At its peak, the company turned out 60,000 motor sub-assemblies per day. However, a slump in the auto industry around 2002 prompted Dean Solon, Shoals' founder and CEO, to reevaluate his business plan. In the process, he realized he could leverage his company's expertise and facilities to produce components for solar panels.

Solon's migration to the alternative energy sector came at a propitious time. Crude oil prices were soaring, which triggered a spike in solar energy projects. Soon, Shoals was the sole supplier of cable assemblies for First Solar, the nation's largest manufacturer of thin-film solar modules.

"The company grew meteorically," Maros says.

As demand rose, Shoals needed more manufacturing capacity. Its managers began to search for expansion sites in Alabama, Tennessee and Kentucky. Again, Shoals' timing was fortuitous: Tennessee economic development agencies were recruiting clean energy and emerging technology companies with generous job tax credits and other benefits. The company set its sights on Sumner County.

In May 2008, Shoals announced the purchase of 14-acres in Gallatin for a new headquarters and a production facility. Over the coming months, however, the company had to postpone construction plans and locate an existing building where it could ramp up production immediately.

"We were growing so fast; we ran out of time," Maros says. "We tried to stay in Gallatin, but were fortunate to find this property in Portland. And we were very impressed at how all the state and local agencies worked together to make it very easy."

Shoals moved into its newly acquired 103,000-square-foot Portland warehouse this past January after converting 10,000 square feet of it into office space. (The remaining space is being used for production.) Maros says the company still plans to build its headquarters in Gallatin, but there is currently no timeline for the project.

Meanwhile, Shoals is in the early stages of building a solar demonstration project on the property adjacent to the Portland plant. The solar field will supply energy to Shoals' factory and function as an educational site for those who want to learn more about solar installations.

From Sea to Shining Sea
Shoals Technologies is not only growing its facilities, it's also expanding its offerings by providing integration capabilities to utility-scale solar fields. According to Maros, it's a booming business.

"We work with an integrator to come up with a cost-effective solution, where we will basically daisy-chain [solar] panels together using a variety of methods," he says. "Dean [Solon] has come up with a plug-and-play system to help reduce the cost of integration in both time and material."

One of the high-profile sites where Shoals has provided integration components and expertise is at El Dorado Solar in Boulder City, Nev., about 40 miles from Las Vegas. The 80-acre site is the largest thin-film solar field in North America, generating 10 megawatts of electricity.

"We're doing the wire harnessing for the next expansion, which will be 48 megawatts," Maros says. "To give you some perspective, 48 megawatts is approximately 770,000 solar panels. It is a big sea of glass."

On other horizons, Shoals is involved in 40-megawatt project in Canada, and it's working with a California company to make systems for residential solar installations.

Back in Tennessee, Shoals' investments are helping state officials position the state as a hub for clean energy research, development and production.

"We are in the early stages of a true technological revolution in the economic development and diversity of our state economy," says Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development. "Companies like Shoals, the early investors, help us demonstrate the state's commitment [to clean energy businesses]."

That commitment increased last month when the legislature approved Gov. Phil Bredesen's budget, which allocates federal stimulus dollars for a new Volunteer State Solar Institute and an associated five-megawatt solar farm in Haywood County. Although these projects will be on the drawing board for some time yet, Kisber says they will generate orders for Tennessee companies and create jobs for Tennesseans.

When that time comes, Maros says Shoals Technologies will be ready. "We'd love to help grow the solar industry right here where we are."