Solar Manufacturing Incentive Grant (SMIG) Program

Created in 1995 and administered jointly by the Virginia Department of Mines, Minerals and Energy, and the Virginia Economic Development Partnership, the Solar Manufacturing Incentive Grant (SMIG) Program offers up to $4.5 million per year to encourage the production of photovoltaic panels in Virginia. The incentive is paid at a rate of up to $0.75 per watt for panels sold in a calendar year, with a maximum of 6 MW. New manufacturers that meet certain production and other criteria are eligible to receive annual incentive grants for six years. The amount will be awarded as follows: Years 1 and 2 - $0.75/watt Years 3 and 4 - $0.50/watt Years 5 and 6 - $0.25/watt In April 2011, H.B. 2316 (S.B. 1360) repealed the SMIG Program and replaced it with the Clean Energy Manufacturing Incentive Grant Program. The SMIG Program will be repealed on July 1, 2013. SMIG grants based on sales made in 2011 cannot exceed $1 million. Any claims above $1 million will be prorated among applicants, as described in the statutes.