US backs finance for Indian solar panels deal

A US development agency has announced USD 500 million of debt financing for the largest American solar manufacturing company to support the company's previously announced solar manufacturing facility in Tamil Nadu, India.

US International Development Finance Corporation, better known as DFC, is lending USD 500 million to build a solar-panel factory in India, in a bid to counter China's dominance of the solar industry's supply chain, Wall Street Journal (WSJ) reported.

"DFC (Development Finance Corporation) is thrilled to be in a position to support First Solar's new venture in India, which will boost solar panel manufacturing capacity for a key ally and help mobilise the industry to take up better standards that align with US values," said Dev Jagadesan, DFC's Acting Chief Executive Officer.

Mark Widmar, Chief Executive Officer, First Solar said India has recognised that it must shape its own sustainable energy future and has sought to supercharge the expansion of its domestic solar manufacturing capacity.

In a press release issued on December 7, DFC said that this investment will promote DFC's commitment to diversifying supply chains.

China currently controls the production of solar panels, accounting for the majority of the global output by some estimates. According to WSJ, this dominance is troubling countries such as the US and India that are trying to increase the use of solar energy.

The release said that DFC's proposed financing promotes the US commitment to tackle climate change at home and abroad and supports the Government of India's ambitious renewable energy goals.

"Prime Minister Modi has launched a comprehensive effort to install 500GW of renewable power generation in India, which will help save lives by reducing pollution in major cities and contributing to the response to the climate crisis," it added.

(ANI)