First Solar to feds: Don't cut loan program

First Solar Inc. and 33 other renewable energy companies are asking Congress to continue funding the federal loan guarantee program responsible for the uptake in solar power plants.

A letter addressed to Democratic and Republic leaders in the House and Senate, seeks continued support U.S. Department of Energy’s loan guarantee program. The program provides financial backing for utility scale power plants either under construction or in the planning stages.

“The DOE loan program provides an important financing bridge at a time when the U.S. private debt markets have little to no experience financing first-of-their kind utility-scale solar projects,” said Rob Gillette, First Solar (Nasdaq:FSLR) CEO.

Large solar and wind farms have been challenged amid the Great Recession due to lack of financing. The federal loan guarantee is a way to encourage financial institutions to jump into the fray.

CEOs signing onto the letter say are concerned that funding for the loan program will be a casualty of proposed budget cuts. More importantly, they say, a loss of funding could hit projects in the pipeline.

Read more in the Phoenix Business Journal.