The US Department of Energy is offering a $535 million loan guarantee for Solyndra, Inc. to support the company’s construction of a commercial-scale manufacturing plant for its proprietary cylindrical solar photovoltaic panels.
Solyndra is the first company to receive an offer for a DOE loan guarantee under Title XVII of the Energy Policy Act of 2005. Solyndra, a Fremont, California-based manufacture, will use the proceeds of the $535 million loan from the US Treasury’s Federal Financing Bank to expand its solar panel manufacturing capacity in California.
|Solyndra modules. Click to enlarge.|
Solyndra panels employ cylindrical modules which capture sunlight across a 360-degree photovoltaic surface capable of converting direct, diffuse and reflected sunlight into electricity. This self-tracking design allows Solyndra’s PV systems to capture more sunlight than traditional flat-surfaced solar panel.
Solyndra’s photovoltaic systems are designed to provide the lowest installed cost and the highest solar electricity output on commercial, industrial and institutional roof tops.
Further, Solyndra’s PV systems are fast and economical to install due to the simple horizontal mounting and unique air-flow properties of the solar panels. Solyndra’s panels are fully certified for US and international use and have been commercially shipping since July 2008.
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. On completion, Fab 2 is expected to have an annual manufacturing capacity of 500 MW per year.
Solyndra and DOE will finalize the transaction upon completion of definitive documentation and satisfaction of certain conditions precedent. 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.