US Department of Energy (DOE) Provides $1.45 Billion Loan Support for Qcells PV Manufacturing [SMM Analysis]

The US Department of Energy (DOE) has finalised a $1.45 billion loan to support Qcells in building a PV supply chain manufacturing facility in Cartersville, Georgia. The Loan Programs Office (LPO) first announced the loan decision in August, contingent on Qcells meeting several technical, legal, environmental, and financial conditions to secure final loan approval. The loan guarantee aims to rebuild critical parts of the US PV supply chain and will support Qcells' PV product manufacturing facility, which will produce silicon ingots, wafers, solar cells, and finished PV modules.

Qcells' facility in Georgia will become the largest silicon ingot and wafer factory in the US. It will also be the first fully integrated silicon-based PV manufacturing facility built in the US in over a decade.

Qcells has committed to investing $2.8 billion in the facility, and combined with its existing plant in Dalton, its annual solar cell production capacity in Georgia is expected to reach 8.4 GW. The project is expected to manufacture modules that will benefit from the 45X Advanced Manufacturing Production Tax Credit. Additionally, the PV modules produced at the facility will help developers qualify for the 10% domestic content tax credit incentive under the Inflation Reduction Act (IRA).

In addition to accelerating domestic manufacturing and innovation for the US clean energy transition, Qcells' investment is expected to create approximately 4,000 jobs. To further boost the local economy, nearly 50% of the construction projects have been subcontracted to local contractors. The final loan guarantee is provided under the Loan Programs Office's Title 17 Clean Energy Financing Program, which offers financing opportunities for innovative energy and supply chain projects, as well as projects reinvesting in existing energy infrastructure.