$500 Million Loan For India Solar Manufacturing

US DFC Backs First Solar’s 3.3 GW Tamil Nadu Module Fab Plans

$500 Million Loan For India Solar Manufacturing

CdTe solar module maker First Solar of the US has found financing support coming from the US government for its planned 3.3 GW India module fab. (Photo Credit: First Solar, Inc.)

  • DFC has approved up to $500 million debt financing for solar module maker First Solar
  • It will enable the American company to move forward with its planned 3.3 GW India solar module fab
  • This amount represents the largest single debt financing transaction for First Solar

American thin-film solar module maker First Solar, Inc. has secured a debt financing amount of up to $500 million from the US International Development Finance Corporation (DFC), to support its planned 3.3 GW module fab in India.

The actual amount will be released basis negotiations of definitive agreements reached. For the DFC, this loan is its largest single debt financing transaction.

First Solar had announced its decision to expand its module making portfolio with a 3.3 GW annual output fab in India’s Tamil Nadu state (see First Solar To Build 3.3 GW Thin Film Solar Fab In India). Most of the output from the proposed plant will be sold within India.

Calling India a Quad ally of the US and a key partner in the Indo-Pacific region, the DFC said the proposed financing will narrow global infrastructure gap, while creating opportunities for American businesses and combating climate crisis.

“This transaction represents another milestone in the United States effort to drive alternative supply chains – and to articulate a vision for climate finance that drives our development mission,” said DFC’s Acting CEO Dev Jagadesan.

Aiming for 16 GW cumulative nameplate capacity by 2024, First Solar broke ground for its $680 million 3rd manufacturing facility in Ohio, US in August 2021 to sport 3.3 GW annual capacity (see First Solar’s 3.3 GW DC Ohio Fab Enters Construction).

The American company has also qualified for the Production Linked Incentive (PLI) tender conducted by the Indian government to support domestic solar manufacturing supply chain set up. However, all of the budget for the scheme was claimed by 3 winners of the competitive process. The government has decided to increase the overall budget of this tender to INR 240 billion, some of which may be coming First Solar’s way as a qualified bidder (see Solar PLI Budget Set To Increase).

About The Author

Anu Bhambhani

Senior News Editor: Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.Before joining our team, Anu worked in various positions at publications of the Times Group in New Delhi. As a Principal Correspondent, she conceptualized special features and supplements for both The Times of India and The Economic Times. While Anu delved deep into solar at TaiyangNews, environment topics have been close to her heart before. As Assistant Editor, she was responsible for launching Planet Earth for The Economic Times, a special series on environment. Before joining the Times Group, Anu was a Copy Editor at the Hindustan Times.Anu holds a Masters degree in Journalism and Mass Communications from the University of Rajasthan. She also studied at the Centre for Science and Environment in New Delhi on E-Outreach: New Media Technologies for Advocacy and Strategic Communication, Social Media

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