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Solyndra Offered First Ever US $535M DOE Loan
March 24, 2009
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California, United States [RenewableEnergyWorld.com] Solyndra Inc. is the first company to receive an offer for a U.S. Department of Energy (DOE) loan guarantee under Title XVII of the Energy Policy Act of 2005. The company, which manufactures cylindrical solar photovoltaic (PV) systems, will use the proceeds of a US $535 million loan from the U.S. Treasury's Federal Financing Bank to expand its solar panel manufacturing capacity in California.
"The DOE Loan Guarantee Program funding will enable Solyndra to achieve the economies of scale needed to deliver solar electricity at prices that are competitive with utility rates."
-- Dr. Chris Gronet, CEO, Solyndra 
“The leadership and actions of President Barack Obama, Energy Secretary Steven Chu and the U.S. Congress were instrumental in concluding this offer for a loan guarantee,” said Dr. Chris Gronet Solyndra's CEO and founder. “The DOE Loan Guarantee Program funding will enable Solyndra to achieve the economies of scale needed to deliver solar electricity at prices that are competitive with utility rates. This expansion is really about creating new jobs while meaningfully impacting global warming.” Over the life of the project, Solyndra estimates that Fab 2 will produce solar panels sufficient to generate up to 15 gigawatts of clean, renewable electricity--enough to avoid 300 million metric tons of carbon dioxide emissions. The company said that the construction of this complex will employ approximately 3,000 people and that the operation of the facility will create over 1,000 jobs. Solyndra and DOE will finalize the transaction by completing paperwork and making sure that the company meets all requirements for the loan. Designed specifically for commercial, industrial and institutional rooftops, Solyndra’s proprietary photovoltaic (PV) panels are fully certified for U.S. and international use and have been commercially shipping since July 2008. Goldman Sachs & Co. acted as exclusive financial advisor to Solyndra in connection with this loan guarantee application.
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Finally, on February 15, 2007, Bush signed Public Law 110-5 which authorized $7 million to pay for administering the program. The same law, however, further delayed any awards until... "final regulations are issued that include (1) programmatic, technical, and financial factors the Secretary will use to select projects for loan guarantees; (2) policies and procedures for selecting and monitoring lenders and loan performance; and (3) any other policies, procedures, or information necessary to implement title XVII of the Energy Policy Act of 2005.
I don't know when those regulations were issued. But here we are in March 2009 with the first loan guaranteed "offered" but not closed.
Solyndra, to their credit, has been working this project for a very long time. To the discredit of DOE I think it's taken them over two years to process this loan request and the process isn't over yet.
It makes me wonder about the recent economic stimulus packages proposed. When the laws are finally passed, how long will it take the money to get into the hands of contractors who can hire people to do the work.
In the case of Solyndra, let's say they start digging in June (optmistic). That's about four years from when the law was passed.