First Solar Gets U.S Govt's Development Bank DFC Funding For 3.3 GW, $684 Million Solar Panel Manufacturing Plant In Tamil Nadu

by India Infrahub - Dec 7, 2021 09:17 PM +05:30 IST
First Solar Gets U.S Govt's Development Bank DFC Funding For 3.3 GW, $684 Million Solar Panel Manufacturing Plant In Tamil NaduFirst Solar 1 million square foot facility Ohio
Snapshot
  • U.S. International Development Finance Corporation (DFC), the country's development bank, today (Dec 7) announced that it approved up to $500 million of debt financing for First Solar Inc., the largest American solar manufacturing company to build a solar-panel factory in Tamil Nadu, India.

    The DFC financing will support the First Solar's previously announced vertically integrated photovoltaic (PV) solar module manufacturing facility in Tamil Nadu, India, with a projected annual capacity of 3.3 gigawatts (GW). The $684 million facility will commence operations in the second half of 2023.

U.S. International Development Finance Corporation (DFC), the country's development bank, today (Dec 7) announced that it approved up to $500 million of debt financing for First Solar Inc., the largest American solar manufacturing company to build a solar-panel factory in Tamil Nadu, India

The seven-year, debt-financing loan is one of the biggest deals in the history of the agency,

The DFC financing will support the First Solar's previously announced vertically integrated photovoltaic (PV) solar module manufacturing facility in Tamil Nadu, India, with a projected annual capacity of 3.3 gigawatts (GW). The $684 million facility will commence operations in the second half of 2023.

DFC said that it most of the new facility’s production will sell into the quickly growing solar market in India, a Quad ally and key partner to the U.S. in the Indo-Pacific region.

DFC's decision to support First Solar's new manufacturing facility in India is seen as a part of U.S administration effort to diversify the solar supply chain and derisk from Chinese dependence. China currently controls the production of solar panels, accounting for more than 70% of global production.

DFC’ said that proposed financing is to support Government of India’s ambitious renewable energy goals.

"Prime Minister Modi has launched a comprehensive effort to install 500GW of renewable power generation in India, which will help save lives by reducing pollution in major cities and contributing to the response to the climate crisis." DFC said in a statement.

First Solar is among the world’s ten largest solar manufacturers. It recently it unveiled plans for a new $680 million factory in Ohio that will add 3.3GW of new domestic manufacturing capacity in the United States by 2023. The company expects to reach 16GW of global manufacturing capacity in 2024.

First Solar said its manufacturing process also allows it to produce solar modules with a carbon footprint that is 2.5-times lower, a water footprint that is three times lower, and an energy payback time that is twice as fast as crystalline silicon (c-Si) panels made in China. The company's PV modules are designed and developed at R&D labs in California and Ohio.

In December 2020, First Solar signed an MOU with the then Edapadi Palaniswamy-led AIADMK government for investing ₹4,185 crore in a manufacturing facility.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.
Advertisement

Latest Articles

    Artboard 4Created with Sketch.