The Dow Chemical Company will house its first full-scale production facility for producing roof shingles that generate solar power in Midland, Michigan to maximize state support.

The Michigan Economic Development Corporation is considering the Dow Powerhouse Solar Shingle facility for up to $140 million in economic incentives.

Meanwhile, local, state and federal funding will help Dow Solar Solutions accelerate production plans for the solar shingles already being manufactured in a small-scale market development plant at Dow’s Michigan operations also in Midland.

Dow has already successfully garnered $100 million in investments for the development of their solar shingle solution since 2007 when it was awarded $20 million under the Department of Energy’s solar program.

Local, state and federal funding are still being finalized for the new facility but it has already earned signs of support, including an endorsement from Governor Jennifer Granholm.

Ms. Granholm spoke of the site selection and over 1,200 jobs the facility could create by 2014 during – in her state address on Wednesday.

“Collaboration between government and business is essential to overcoming the challenges facing our society today, including energy, climate change and the creation of sustainable jobs,” said Andew N. Liveris, Dow Chairman and chief executive.

The expected growth of more than 1,200 jobs to support the increased solar shingle production will be in the manufacturing, commercial and technical areas. Staffing will begin in late 2010.

Dow Chemical’s solar shingles are expected to be available in limited amounts by mid-year and more widely available in 2011, coinciding with the planned production scale-up.

The powerhouse solar shingle integrates low-cost thin-film, copper indium gallium selenide (C.I.G.S.) photovoltaic cells into a proprietary roofing shingle design. This design reduces installed costs because it can be installed easily alongside conventional roofing shingles.