DOE Finalizes $535M Loan Guarantee for Solyndra 500 MW/Yr Cylindrical Solar PV Plant; Solyndra Begins Construction

6 September 2009

The US Department of Energy finalized a $535 million loan guarantee for Solyndra, Inc., which manufactures cylindrical solar photovoltaic panels. Concurrent with the finalization of the loan guarantee, Solyndra commenced construction of its second solar panel manufacturing plant (Fab 2). Located near its current manufacturing facility in Fremont, California, Fab 2 is designed to produce 500 MW per year.

The new facility will enable Solyndra to fulfill its announced contractual backlog of more than $2 billion. Solyndra’s two Fabs will produce enough solar panels over their lifetime to cut more than 350 million metric tons of CO₂ emissions.

Solyndra is the first recipient of a loan guarantee under the Recovery Act and Title XVII of the Energy Policy Act of 2005. In addition, the loan guarantee issued to Solyndra is the first issued by DOE since the 1980s.

Solyndra also raised $198 million in an equity financing round led by Argonaut Private Equity to provide the capital required for the Fab 2 project. Goldman, Sachs & Co. acted as exclusive financial advisor to Solyndra in connection with the DOE loan guarantee.

Solyndra designs and manufactures photovoltaic systems, comprising panels and mounting hardware, for the commercial rooftop market. Solyndra employs high-volume manufacturing based on proven technologies and processes. Using proprietary cylindrical modules and thin-film technology, Solyndra systems are designed to provide the lowest installed cost per system and the highest solar electrical energy output for typical low slope commercial rooftops.

Solyndra’s panels employ cylindrical modules which capture sunlight across a 360-degree photovoltaic surface capable of converting direct, diffuse and reflected sunlight into electricity. Solyndra’s panels perform optimally when mounted horizontally and packed closely together, thereby covering significantly more of the typically available roof area and producing more electricity per rooftop on an annual basis than a conventional panel installation. The result is significantly more solar electricity per rooftop per year.