Producers of the raw materials for solar energy manufacturing have take a shine to the Volunteer State and the Northeast Tennessee Valley Region is positioning itself to take advantage of the opportunity.

Wacker Chemie AG is investing $1 billion in a facility in Bradley County, Tenn., for production of hyperpure polycrystalline silicone. Hemlock Semiconductor, a competitor, is building its own $1 billion plant in Montgomery County, Tenn., for production of semiconductors for solar panels.

Such momentum should draw other companies that make materials for solar installations, especially specialized glass.

In the Northeast Tennessee Valley, the anchor is in place with Kingsport's AGC Flat Glass, the world’s leading producer of solar glass. The site is the company’s largest solar voltaic cover class production facility in North America. It has another plant in Church Hill, Tenn., and a coatings plant in Abingdon, Va.

"AGC provides the foundation in our region for solar-related companies," says Alicia Summers, executive director of the Northeast Tennessee Valley Regional Industrial Development Association. "We are hoping to feel the effects of the Wacker Chemie and Hemlock operations and are working to prepare ourselves for when that interest comes to our region."

AGC itself already is adding new solar glass manufacturing capacity to its Church Hill operation, citing increased North American demand.

"What we see as unique is that there are two types of solar modules that take glass, and both types will be produced in close proximity," says Ed Wegener, AGC's solar business unit manager. "It is a distinct advantage for prospective customers."

The Kingsport plant makes one version; the facility in Church Hill, in Hawkins County, will start producing the second type.

"Our company made solar glass in early 1980s when solar wasn’t much more than a dream," Wegener says.

Hawkins County already is home to two other solar-related companies: Short Mountain Silica, which produces high-quality silica sand, and Contour Industries, a small glass specialty manufacturer.

A solar provider has expressed interest in Wise County, Va., and, and the state’s southwest corner also has sparked interest among biofuel firms, says Glen “Skip” Skinner, executive director of the Lenowisco Planning District Commission. Lenowisco is short for Lee County, the city of Norton, and Wise and Scott counties.

Solar supply chain prospects will find the region hospitable. A company investing $500,000 and creating at least 25 new jobs in Tennessee is eligible for a $2,000 tax credit per worker – $4,500 if the site is in an economically distressed county. That is a standard across-the-board incentive. But Tennessee is taking an extra step for green power suppliers. If the company is spending at least $250,000 in the state, Tennessee will pick up the tab for any future carbon offset tax.

The Tennessee Solar Institute, a new initiative, will be jointly run by Oak Ridge National Laboratory and the University of Tennessee. More than $60 million in federal stimulus money allowed the projects to move forward.

The Solar Institute will provide innovation grants to solar firms based in the state. A separate program will provide grants to help businesses buy and install small-scale solar systems.