DENVER -- Denver Mayor John Hickenlooper and Colorado Gov. Bill Ritter announced Monday that a renewable energy company has selected Denver for its first North American manufacturing site.

German-based SMA Solar Technology will build a $20 million facility in Enterprise Park, at Havana Street and Smith Road, in Stapleton. The company makes solar inverters for manufacturing companies. The solar inverters convert the direct current (DC) generated by residential solar panels into grid-acceptable alternating current (AC).

SMA plans to have the Denver operation up and running by next year, with 300 jobs initially and the capacity to expand to 700 jobs. The average salary for new workers will be $30,000, according to company officials.

The company is looking for people to fill management and production positions, preferably workers with experience in electrical manufacturing.

Ritter said Colorado's efforts to build a new energy economy provides a model for addressing climate change and other challenges facing the country and world.

"SMA didn't pick Denver or Colorado by accident. We have the perfect eco system from the best research core in the world, to the best combination of land, rail and highway, the best workforce and 300-plus days of solar," Ritter said. "The company's decision to invest over $20 million in this site and to locate in Colorado emphasizes our growing clean-energy industry, the growing market for photovoltaics, and Colorado's success at transforming our energy future."

It is SMA Solar's first plant outside of Germany. Denver was one of 10 cities considered for the manufacturing plant. The company chose Denver because it says it appreciates the mayor and governor's focus on creating a clean energy economy and it sees the type of work force it is looking for in Colorado.

"In the medium term, we expect the U.S. market to become the largest solar market globally," said Günther Cramer, chief executive officer of SMA Solar Technology. "With our new production facility in Denver, we will be able to reduce transportation and interim storage costs as well as currency exchange risks."