First Solar stated that it will not meet its federal funding program deadline for its big solar power facility in California. As a result, its shares came crashing down to their worst level in the last four years.
In response, the announcement that was made by First Solar has been highlighted by the Obama administration once again in its advocacy of solar energy. It has been the center if Republicans’ rage since the shutdown of Solyndra, a solar company that was situated in Silicon Valley. Solyndra has earned about $500 million worth of funding but still crashed down.
Last June, First Solar has acquired the approval of the U.S. Department of Energy for a loan that sum up to $1.9 billion. It will guarantee the establishment of the 550-megawatt Topaz plant. However, they said that it was not able to process all the needed documents under the loan program of the energy department before its September 30 deadline. Experts stated that the energy department’s effort to process the loan was burdensome and thorough than what banks suggested. It has set-up the Republicans’ claim that the Obama administration tends to hasten the approval of funding.
Around the world, First Solar is one of the solar manufacturers with lower cost. They said that they are in the talks of selling and financing the Topaz plant, and they would make safe of its financing that is independent from the support of the Energy Department. Once the company has found a potential buyer that will secure funding for the plant, there are possibilities that they will pay higher interest rates, given the fact that it has loan guarantee from the government.
However, when asked about the bold move they are suggesting, First Solar failed to give any comments and stated that they will not be able to divulge any information with regards to the costs of the project. First Solar also did not see any shortage in its near-term income. They said that the incident will not deal any damage in their 2011 profit. Nonetheless, with the coming years ahead, it might actually affect their company.
As the solar energy is increasingly taking the top scene on being a contender as an alternative energy source, First Solar is having troubles in its anticipated funding. With that, the solar energy venture may become out of place in the Obama administration’s attempt to find better solutions for alternative energy sources. The company will wait for further information about their targeted budget for funding their Topaz plant.
Timo Brice is a copywriter who specializes in writing for the renewable energy sector. His client supplies Solar PV and Solar panels to the Sussex areas