by Kristian Foden-Vencil

Solaicx is the latest beneficiary of the booming renewable energy market. It just raised $27 million from the venture capital group D.E. Shaw and is using the money to help build a factory in Portland's Rivergate Industrial District.

John Sedgwick: "We're ecstatic with being up in Oregon."

John Sedgwick co-founded Solaicx in Santa Clara five years ago.

John Sedgwick: "We've been contemplating this move for some time. We've had about 10 guys that have been living in California here for about a year in apartments, while their homes and families are back in Portland. And they've been working and training here and they're ecstatic."

Since then, he says, they've been working to make silicon wafers faster and cheaper.

He says they've now perfected the technique and plan to start mass production in Portland.

John Miller, of the Oregon Solar Industries Association, says the announcement shows the industry has momentum, and points to a growing cluster of local solar power companies.

John Miller: "I think it's great. It's another example of how we're growing manufacturing up here in the northwest. We're now a powerhouse in the United States in manufacturing."

Miller says that over the last couple of years, the northwest has attracted over a billion dollars worth of commitments to solar power. The reasons, he says, are varied.

First, Oregon has been actively courting solar companies -- because of the local desire for renewable energy.

Second, manufacturers love the relatively cheap electricity here.

John Miller: "Another thing that's bringing these solar manufactures, is that we have an educated workforce here. I believe the Solarworld plant, before they even announced they had something like 500 applications from highly qualified people to go work at their plant. They were ecstatic."

Other reasons for the interest from solar power companies is that Oregon sits on top of the third largest solar market in the world -- California.

Governor Ted Kulongoski has also made renewable energy a centerpiece of his economic policies. A bill to increase the state's business energy tax credit from 35 to 55 percent is aimed at encouraging companies to build new power sources in the state.

Jake Whigler is the governor's spokesman.

Jake Whigler: "I think that if you look at the companies that have recently located, whether it's Solar World or Solaicx, both of them have cited this credit as a major incentive. And we see that by expanding it, offering an even better opportunity. It will allow us to take on bigger projects, larger production facilities and so forth."

But for those who lived through the energy crisis of the early 1970's, the promise of solar power rings a little hollow.

Many remember being told that in a few years almost everyone would have solar panels on their roof, providing copious amounts of free hot water and power.

It never came true.

But supporters say this time it's different. They point to the fact that all the big oil companies, like Shell and BP, now have solar departments.

They also see venture capitalists falling over themselves to invest in the technology.

Solaicx's co-founder John Sedgwick, believes solar power is where cell phones were -- 20 years ago.

John Sedgwick: "Back in the 80's the cellular market was minute. And the reason it was minute was the cost per minute was astronomical -- everybody wanted it. But few could afford it. As the cost per minute started approaching that of a normal telephone the market just exploded."

The average cost of power nowadays is about 12 cents per kilo-watt hour. Sedgwick says the cost of solar power currently stands at about 29 cents, but is dropping fast.

Meanwhile, Solaicx has already posted jobs for engineers, technicians, material managers and shipping clerks on its website.