Solyndra Gets $535M Gov. Loan Guarantee to Scale PV Production
Solyndra, which back in July announced an order flow of some $2 billion, has scored a $535 million loan guarantee from the Department of Energy to support the construction of a West Coast manufacturing facility.
The announcement was posted on the White House, Web site. Normally those funding releases are handled by the DOE. Although much attention now focuses on the ruckus healthcare debate, clean energy is one of the Obama administration’s cornerstone policy and it’s eager to highlight that whenever it can.
In the press release Vice President Joe Biden said:
“This announcement today is part of the unprecedented investment this Administration is making in renewable energy and exactly what the Recovery Act is all about. By investing in the infrastructure and technology of the future, we are not only creating jobs today, but laying the foundation for long-term growth in the 21st-century economy.”
This is the first loan guarantee issued by the DOE in nearly 30 years. So, why Solyndra?
The company, unlike a lot of its competitors, has successfully converted a cutting-edge idea into a viable commercial product.
Solyndra, based in Fremont Calif., and launched in 2005, has developed tube-like solar cells that make use of copper, indium, gallium and selenium (CIGS) for converting sunlight into electricity. The innovative design and its cheap installation costs have all been convincing arguments for buyers. The company only began actively marketing its technology last fall. In July it inked a $238 million contract with German solar power company Umwelt-Sonne-Energie. That’s the deal that brought Solyndra’s total order flow to $2 billion.
Another factor has to do with the falling prices of PV panels thanks to a series of technological improvements. Declining prices are expected to boost sales, of what had been until recently an expensive proposition.
According to the White House press release, once operational the Solyndra plant could manufacture up to 7 gigawatts of solar panels or as much electricity as 3 or 4 coal fired power plants.
