The California Energy Commission has approved a $5 million loan to help a solar cell manufacturing company expand its production.

The loan, the first from the Clean Energy Business Financing Program, will go to the Silicon Valley company Calisolar Inc., which makes multicrystalline solar cells and plans to expand its annual production capacity from 60 megawatts to 75 megawatts in the next several months.

Six other California-based manufacturing companies that have expansion plans for solar-related production are on a list of proposed loan awards not yet made final.

The Clean Energy Business Financing Program is using American Recovery and Reinvestment Act funds to provide up to $30.6 million in loans at interest rates of 2.75 percent to private businesses planning to improve or expand their energy-efficiency or renewable-energy manufacturing operations in California.

"California's manufacturing base has eroded 32 percent since 2001, a loss of over 600,000 manufacturing jobs. In these challenging fiscal times, companies such as Calisolar, that are developing clean-energy products, are becoming an economic bright spot," said the California Energy Commission's chairwoman, Karen Douglas, in a news release. "In-state clean-energy manufacturing feeds into other businesses and state programs, such as the New Solar Homes Partnership, boosting jobs and renewable technologies."

Calisolar's project is using both private and government funding to expand production and employ workers. Calisolar is providing $20.7 million in leveraged financing for the project's total $25.7 million cost. The $5 million government loan is to be repaid in 84 monthly payments.

"The Clean Energy Business Financing Program links two of California's most vital interests, the environment and the economy," said Calisolar's chief executive officer, Sandra Beach Lin, in the news release. "By supporting manufacturers in renewable technologies, the California Energy Commission is having a direct impact on the ability of companies like Calisolar to create new jobs in California, introduce innovative systems and solutions that benefit the environment, and compete successfully in the global arena."

Calisolar's application was one of 44 submitted to the new financing program. Projects were evaluated for job creation or retention, energy saved, leveraged financing, and an economic adjustment for manufacturing job loss. They also underwent business credit analysis. The proposed loan awards were announced in July for seven solar-related manufacturing expansions, including Calisolar's.

Calisolar has also been awarded a clean-energy manufacturing tax credit of $51.6 million in Recovery Act funding. The company was selected for that award after a review of criteria that included domestic job creation, impact on reducing pollution, potential for technological innovation and commercial deployment, and project time from certification to completion.

The California Energy Commission has received $226 million under the State Energy Program to carry out a variety of public and private programs.
 

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