DOE Picks Solar Panel Maker Solyndra for First Recovery Act Loan Guarantee: $535 Million

Solyndra, Inc., a Fremont-based photovoltaic panel designer and manufacturer, has won a $535 million DOE loan guarantee, and is the first to do so under the Recovery Act. The money will finance the first phase of construction for the company's new manufacturing facility. Solyndra designs and manufactures photovoltaic systems that incorporate its proprietary cylindrical modules and thin-film technology.

The annual production during the first phase of Solyndra's project is expected to produce the equivalent amount of energy to power 24,000 homes a year or more than 500,000 homes during the project's lifetime. The company estimates that the new facility will initially generate about 3,000 construction jobs and 1,000 jobs when the plant begins operation — and hundreds more when the solar panels are installed on rooftops throughout the country.

"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," said Vice President Joe Biden, who made the initial announcement.

During the course of the Solyndra project, the new facility could manufacture up to seven GW of solar panels, which would be able to provide the electricity equivalent of three or four coal-fired generation plants. The Solyndra plant alone is expected to produce as many solar panels as the U.S. produced in 2005.

Solyndra's proprietary cylindrical design offers several benefits. The high performance panels are relatively easy to install and are designed in a way that allows more use of the rooftop area. Air flows through the panels, which keeps operating temperatures lower. Also, the material used in construction of the cylinders allows them to take in direct, reflected and diffuse sunlight.

DOE offered the Recovery Act loan guarantee earlier this year and initially issued a conditional agreement. The Energy Department noted that the completed agreement further establishes its commitment to expedite loan guarantees and other funding options.

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