$535 Million Loan Guarantee For Solyndra’s New Solar Plant

September 6, 2009 · Filed Under Business · Comment

Solar power systems maker Solyndra Inc will be helped by a $535 million loan guarantee from the US Energy Department in its bid to construct a photovoltaic panel manufacturing plant.

The loan guarantee will cover 73 percent of the total cost of setting up the plant while Solyndra will be expected to finance the rest. The plant will have a capacity to generate 500 megawatts of power a year. Apart from contributing to the generation of clean and alternative form of energy, the solar panel manufacturing plant is also expected to be an important source of job creation. The company announced in March that the project will lead to at least 3000 new construction jobs and as many as 1000 long-term jobs.

The loan guarantee offered to Solyndra Inc is part of the Obama administration’s attempts to encourage greater developments in energy projects that will reduce greenhouse emission in the country. For this purpose, the administration has set aside $83 billion in loan guarantees to be distributed among companies which are ready to take up such projects. The loan guarantee scheme is being funded by the economic stimulus plan that President Obama signed in February this year.

Tags: $535 million loan guarantee from US Dept of Energy, Solyndra Inc, US Dept of Energy