On March 23, the U.S. Department of Energy (DOE) tentatively awarded its initial alternative-energy loan guarantee, thus breaking a four-year stalemate in the Loan Guarantee Program instituted in 2005 by the Energy Policy Act. The move is in response to a $6-billion allocation under the American Recovery and Reinvestment Act of 2009.

Up to now, the application process for Energy Policy Act loans has been hindered by a bureaucracy with decided leanings toward conventional energy, but newly appointed Energy Secretary Steven Chu has made it his priority to move the program forward to meet the Obama administration’s goal of 10 percent of U.S. energy from renewables by 2012, and 25 percent by 2025, with an additional commitment of five million “green” energy jobs.

The recipient is Solyndra Inc., and the guarantee – for a $535-million loan backed by the American Recovery and Reinvestment Act – is still subject to final legal and financial approvals, but if approved will give Solyndra a decided edge in the solar electric marketplace.

According to company officials, Solyndra will use the money to expand production at its Fremont, California plant. Solyndra’s operations, which convert glass tubes to photovoltaic (PV) panels by wrapping them in thin-film PV material, are meant for commercial application. The panels lay flat – a design which the company says reduces the amount of roof space needed and makes installation cheaper and easier. The company has been shipping panels since last July.

The company said the loan guarantee would provide debt financing for about 75 percent of the expansion costs, which is scheduled for later in 2009. Once complete, the new facility will have an annual manufacturing capacity of 500 megawatts per year, and could ultimately produce thousands of jobs in construction, manufacturing and solar installation. Solyndra, which has already raised some $600 million in venture-capital financing, already has a plant that can produce up to 50 megawatts of PV panels a year. Solyndra already has a backlog of about $1.2 billion in supply contracts with firms in both the United States and Europe.

The DOE, under Chu, has finally found the impetus it lacked and is moving to complete its reviews of other projects. According to officials, it expects to announce additional financing opportunities in the coming weeks.

“After years of watching this program struggle to get off the ground, it’s encouraging to see that Secretary Chu’s energetic new leadership at the department is having an effect.” noted Senator Jeff Bingaman, the Energy Committee chairman.

Other alternative energy projects are also in the works at the nation’s capital. On Sept. 29, 2008, the United States Department of Energy (DOE) announced that it will begin investing $17.6 million, with industry subsidies of at least 20 percent, in six company-led, early-stage photovoltaic (PV) projects under the Solar America Initiative.

This "PV Incubator" project is aimed at moving prototype photovoltaic (PV) components and systems toward commercialization by 2010, and making solar electricity cost-competitive with conventional forms of electricity by 2015. The projects will run for 18 months, and will be subcontracted through DOE's National Renewable Energy Laboratory.

Last year may have been a downturn, but 2009 is clearly shaping up to be a watershed year, at least in terms of federal government support for solar energy. In fact, sufficient incentives may lead 2009 to being the year in which solar energy finally reaches grid parity, leading to that oft-touted but so far elusive “clean energy” future.