Solar

Solyndra Offered First Ever US $535M DOE Loan

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 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.”

The guaranteed loan, expected to provide debt financing for approximately 73% of the project costs, will allow Solyndra to initiate construction of a second solar panel fabrication facility (Fab 2) in California. Once completed, Fab 2 is expected to have an annual manufacturing capacity of 500 megawatts per year.

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.