ATLANTA — The federal government is making its first loan to a crystalline silicon solar plant, loaning $1.45 billion to support a South Korean company’s bid to build up key parts of the solar supply chain inside the United States.
The loan from the U.S. Energy Department, announced Thursday, will be key to funding a $2.2 billion complex that Qcells, a unit of South Korea’s Hanwha Group, is building. The company plans to take polysilicon refined in Washington state and make ingots, wafers and solar cells — the building blocks of finished solar modules — in Cartersville, Georgia, northwest of Atlanta.
President Joe Biden’s Inflation Reduction Act, besides offering a extra tax credit on American-made solar equipment, lets manufacturers earn incentives for every unit of polysilicon they refine and every wafer, cell and module they make.
“This loan is special, because it’s one of the first facilities where we’re not just making modules, but we’re making cells and wafers as well,” Jigar Shah, director of the Energy Department’s loan programs, said in a telephone interview Wednesday with The Associated Press. “So we’re bringing a lot more of the supply chain into the United States.”
Qcells in April began assembling modules in part of the complex, which will have a capacity of 3.3 gigawatts of solar panels each year. The plant in Cartersville currently has about 750 employees and is projected to have 2,000 when complete. Qcells says it’s on track to complete the wafer and cell portions of the plant by December.
The company also has a $630 million plant in Dalton, farther northwest in Georgia, with a capacity of 5.1 gigawatts a year. That 1,800-employee plant was built without government loans. The company imports the cells for the Dalton plant.
The Cartersville plant would be the largest ingot and wafer plant built in the United States, the Energy Department said. Between the Dalton and Cartersville plants, Qcells will produce enough solar panels to power nearly 1.3 million homes per year, reducing carbon dioxide emissions from power generation.
Microsoft Corp. has contracted to buy a significant portion of the Cartersville plant’s output over eight years.
Qcells must meet certain conditions for the loan, and Marta Stoepker, a company spokesperson, said Qcells is confident that it will meet the requirements.
“The loan that we’re getting is going to be massively critical for us to stay on track with our goal of really onshoring the supply chain and making it in America,” Stoepker said.
Still, the company said the Biden administration needs to stay committed to supporting domestic solar manufacturing in the face of a continuing surge of cheap imports from Asia, which has caused solar panel prices to fall. Qcells and other manufacturers are pushing for tariffs to protect against what they say is below-cost dumping by companies in Cambodia, Malaysia, Thailand and Vietnam that have ties to China. Stoepker said the Biden administration also could help by refining guidance on the tax credit bonus for American-made equipment.
Shah defended the administration’s efforts, saying supports for the industry are “providing a lot of stability for folks to invest.”
He said the United States is on track to have a reliable domestic supply chain capable of meeting most of its solar panel needs.
“The domestic demand for solar modules in 2026 is expected to be around 50 gigawatts. We’re expecting to produce about 40 gigawatts in 2026,” Shah said. “So that means 80% of the modules that we deploy in the United States in 2026 is expected to be domestic.”
U.S. Sen. Jon Ossoff, a Georgia Democrat who has been the foremost cheerleader for the Biden administration’s support of clean energy projects in the state, said the loan will “continue growing our economy and strengthening American energy independence.”
In a groundbreaking move, a South Korean firm is set to receive a $1.45 billion loan from the US government to fund the construction of a massive solar plant in Georgia. The project, which is expected to be one of the largest solar facilities in the country, represents a significant step forward in the push for renewable energy and sustainable development.
The loan, which is being provided by the US Department of Energy’s Loan Programs Office, will enable the South Korean firm to build a state-of-the-art solar plant that will generate clean, renewable energy for thousands of homes and businesses in Georgia. The project is expected to create hundreds of jobs in the region and stimulate economic growth in the area.
The decision to provide such a substantial loan to a foreign firm highlights the growing importance of international collaboration in the fight against climate change. By supporting the construction of large-scale renewable energy projects in the United States, the government is not only helping to reduce greenhouse gas emissions but also fostering partnerships with other countries to promote sustainable development on a global scale.
The South Korean firm, which has a strong track record in the solar energy industry, was chosen for its expertise and experience in developing large-scale renewable energy projects. The company’s commitment to innovation and sustainability aligns with the goals of the US government’s loan program, which aims to support projects that advance clean energy technologies and create jobs in the renewable energy sector.
The construction of the solar plant in Georgia is expected to begin later this year and be completed within the next few years. Once operational, the facility will have the capacity to generate enough clean energy to power tens of thousands of homes, reducing reliance on fossil fuels and helping to combat climate change.
Overall, the $1.45 billion loan from the US government represents a significant investment in the future of renewable energy and sustainable development. By supporting the construction of a large-scale solar plant in Georgia, the government is not only helping to create jobs and stimulate economic growth but also advancing the transition to a cleaner, more sustainable energy system for future generations.
