Qcells, a crystalline silicon solar manufacturer, has secured a conditional commitment for a loan guarantee of up to $1.45bn from the US Department of Energy (DOE).
This loan guarantee is part of the Biden-Harris Administration’s Investing in America agenda. It is designated to support Qcells in constructing a $2.5bn solar supply chain facility in Cartersville, Georgia.
The facility is expected to be the largest of its kind in the US, producing ingots, wafers, cells, and finished solar panels. It is also projected to be the first fully integrated silicon-based solar manufacturing plant built in the US in over a decade.
The Cartersville facility is hoped to create approximately 1,200 construction jobs and, upon completion, will support 1,950 full-time operational positions.
Upon becoming fully operational, the Cartersville plant is anticipated to produce 3.3GW of solar panels annually, sufficient to supply panels for about half a million American households. This production is expected to help reduce emissions from power generation by over five million tonnes of CO2 equivalent per year, aligning with the administration’s target of achieving net-zero emissions by 2050.
Qcells, which is a subsidiary of Hanwha Solutions, already has a factory in Georgia at Dalton, which began operations in 2019. It was recently expanded to produce 5.1GW of solar panels annually.
The Dalton facility will provide operational experience for the new Cartersville plant.
The Cartersville plant will support the reshoring of solar component production, which is currently largely manufactured in China and Southeast Asia. This shift aims to enhance the resilience of the US supply chain and reduce costs for customers nationwide.
The solar panels produced at the Cartersville facility will be used in both distributed and utility-scale projects.
Qcells has also secured an eight-year, 12GW solar and engineering, procurement, and construction (EPC) agreement with Microsoft. The agreement will be fulfilled with panels manufactured in Cartersville.
Qcells stated: “Qcells’ integrated supply chain facility in Cartersville, Georgia, has made significant progress. By the end of this year, Qcells will produce the full solar supply chain, from ingot to finished panel, all under one roof in Georgia.
“We have made such investments because we believe onshoring solar manufacturing is key to building a sustainable, secure, and independent energy future in the US.
“The ongoing support for our investments, stemming from the Inflation Reduction Act and the efforts of local to federal officials, affirms the importance of this industry and the need for a whole of government approach to see domestic solar manufacturing succeed long term.”
The loan guarantee to the firm will be provided through the DOE’s Title 17 Clean Energy Financing Program, which supports innovative energy projects and reinvestment in existing energy infrastructure.
While this conditional commitment indicates the DOE’s intention to finance the project, Qcells must meet various technical, legal, environmental, and financial conditions before final financing documents are completed and the loan is disbursed.
