Bila Solar seeks tax break on $36M in equipment for HQ, production facility
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A Singapore-based solar energy company with plans to establish its U.S. headquarters near downtown Indianapolis is seeking a tax break from the city on $36 million in equipment.
Bila Solar plans to create 244 jobs by 2026 at a facility partially used by Eli Lilly and Co. and Elanco Animal Health at 1249 S. White River Parkway East Drive. As IBJ reported in late August, the firm plans to spend $36 million on its portion of the 447,000-square-foot building to produce a lightweight solar module that weighs just 30% of regular glass solar panels and is 95% slimmer.
The company will use about 158,000 square feet of the 477,000-square-foot structure for a combined headquarters and robotic-assisted manufacturing operation. It has secured an initial nine-year lease for its space with two five-year extension options, according to documents filed with the city of Indianapolis
The property is owned by 1301 White River LLC, a holding company affiliated with local real estate investor Wade Achenbach, who is a principal in Indianapolis-based Forest Creek Ventures. He acquired the building in September 2022, according to county property records.
The Metropolitan Development Commission is expected to consider Bila’s tax abatement request for preliminary approval on Wednesday. DMD staffers have recommended approval of the request.
If the abatement is approved, the firm would receive an eight-year personal property tax abatement for its new equipment. The tax break would save the company about $1.92 million in taxes on the property over that period—about 66.3% of the total in taxes owed—with the firm on the hook for about $979,400. Bila would pay about $300,300 in taxes on the equipment annually after the abatement expired.
Bila plans to donate about 5% of its abatement savings to Employ Indy’s Indy Achieves grants program.
The abatement would be an additional incentive for the company, following commitments from the Indiana Economic Development Corp. to provide up to $4.2 million in tax credits and up to $300,000 in workforce training grants. It has also committed up to $2 million in Hoosier Business Investment tax credits and up to $200,000 in Manufacturing Readiness Grants, which are designed to help companies invest in smart manufacturing and new technologies.
The new factory is expected to begin production in summer 2024 and produce an annual capacity of one gigawatt of solar modules, or about 5,000 high-capacity modules daily.
Those modules can be used in challenging applications, including low load-bearing commercial and industrial roofs, waterproof membrane roofs, and in integration into vehicles for solar power and off-grid energy utilization.
The average wage for the 244 workers would be about $26.24 per hour.
Founded in 2014 under the name Sunman by Zhengrong Shi, Bila Solar has completed 500 megawatts of solar installations worldwide. It operates a one-gigawatt manufacturing facility in Asia.
Shi, 60, is the founder and former leader of Suntech Power, which was one of the world’s largest solar panel companies until its bankruptcy in 2013. Shi became China’s richest person—and was nicknamed “Sun King”— thanks to Suntech, with a net worth estimated at $2.9 billion in 2008. But his fortune dwindled significantly after the company’s bankruptcy.
In recent years, Shi has concentrated his development efforts on more lightweight, flexible solar panels.