US development agency announces $500 million to support solar panel deal with India

The largest solar panel manufacturing company of the United States has reportedly received nearly USD 500 million in debt finance from a US development agency to assist the company's earlier announced solar manufacturing facility in Tamil Nadu, India. According to the Wall Street Journal (WSJ), the United States International Development Finance Corporation (DFC) is loaning USD 500 million to develop a solar-panel plant in India in order to fight China's domination of the solar industry's distribution chain.

Dev Jagadesan, DFC's Acting Chief Executive Officer, stated, “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 mobilize the industry to take up better standards that align with U.S. values," ANI reported.

According to the WSJ, this deal ticks off numerous criteria for US DFC. Further, the US has urged it to concentrate on climate change and strengthen connections with India. Congress had restructured the DFC from a previous agency earlier in 2019, directing it to combat authoritarian regimes while still fostering prosperity in emerging nations, according to the report.

India must define its future with its very own sustainable energy

Furthermore, the Chief Executive Officer of First Solar, Mark Widmar stated India has acknowledged that it must define its future with its very own sustainable energy and has tried to accelerate the growth of its national solar panels manufacturing capability. He went on to say that DFC's funding for the Tamil Nadu facility has the potential to set a high-profile, repeatable model for assisting like-minded countries' clean energy objectives via American technology, inventiveness, and competitiveness.

DFC stated in a press release on Tuesday that this investment will support the company's goal for broadening supply chains. According to the Wall Street Journal, Solar panel manufacture is now controlled by China, which, according to some estimates, accounts for the bulk of world output. Such dominance is causing concern in nations like the United States and India that are attempting to enhance their usage of solar energy.

In addition to this, the press release by US DFC stated that Prime Minister Narendra Modi has initiated a comprehensive effort in India to install 500GW of renewable energy generation, which will benefit mankind by lowering pollution in major cities and contributing to the response to the climate catastrophe.

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