The Department of Energy (DOE) has made back to back announcements that combined will support the solar sector with loan guarantees that total nearly $500 million.

Yesterday, the Department awarded a partial guarantee of a $344 million loan for what is expected to be the nation's largest residential rooftop solar project. Over the next five years, SolarCity Corporation will use the funds to install and operate up to 160,000 rooftop solar installations on an estimated 124 U.S. military bases.

US Renewables Group, a subsidiary of USRG Renewable Finance, will act as the project's lead lender; meanwhile Bank of America Merrill Lynch (NYSE: BAC) will provide debt financing.

The project, dubbed SolarStrong, is already underway in Hawaii where SolarCity is installing a 4 MW solar system at Hickman Air Force base. When complete, SolarStrong is expected to create 371 MW of renewable energy. SolarCity will sell the power its systems produce to the Department of Defense (DOD) through long term power purchase agreements (PPA).

The DOD, which is the country's largest consumer of electricity, is moving rapidly towards its goal to source 25 percent of its energy's from renewables by 2025. Last week, it selected three companies for a $500 million multiple award contract for the purchase of energy from solar generating systems installed on Naval properties in Hawaii.

In Massachusetts, solar wafer developer 1336 Technologies Inc. will move forward with plans to build a multicrystalline wafer manufacturing facility after today's news that the DOE finalized $150 million loan guarantee to support the project.

Located in Lexington, MA, the facility will be capable of producing 1,000 megawatts (MW) of silicon-based wafers annually. The facility will employ the company's Direct Wafer manufacturing process which 1336 claims will reduce the cost of production by 50 percent.

The Direct Wafer technology initially received a $4 million award from the DOE through its Advanced Research Project Agency - Energy (ARPA-E). That initial investment has lead to a sparking of interest from the private sector. In March, led by an investment from GE Energy Financial Services (NYSE: GE), 1336 closed its series B funding round with $26.4 million. 

This loan guarantee furthers the DOE's investment in projects that seek to create technologies that increase solar efficiency and reduce the cost of generating solar power. Just a week ago  Energy Secretary Steven Chu injected another $145 million into the Department's Sunshot Initiative. The new funds will support 69 solar technology development projects spanning 49 states.

Image Credit: gr33n3gg via Flickr

 

 

 

 

 

 

 

This is a cross-post from EnergyBoom.com.

 

EnergyBoom is a global leader in energy news information, offering expert analysis on the world economy’s transition to cleaner, more efficient and more secure sources of energy. 

 

Original Post: http://www.energyboom.com/solar/united-states-doe-backs-solar-projects-nearly-500-million-loan-guarantees