Leading thin-film manufacturer First Solar faces the prospect of losing a key financial supporter of its foreign exports as the possible closure of the US Export-Import Bank looms.
Congress allowed a deadline earlier this week for the reauthorisation of the bank to pass without acting, and a vote on its future scheduled for next week could see the organisation stop issuing new loans permanently.
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The Ex-Im provides cheap loans to secure business for US exporters looking to enter markets that could be deemed risky. Its website already states that new loan applications are currently on hold.
During a visit to a First Solar factory in Perrysburg in February 2015, Fred Hochberg, the chairman and president of Ex-Im revealed the extent to which First Solar has relied on the bank's support:
“We have worked closely with First Solar on putting these innovative products overseas. Close to 90 to 95% has been financed by the Export-Import Bank, so we help them compete against China and against other countries that are also trying to get into the solar field.”
A spokesperson for First Solar declined to comment.
In October 2014, President Obama and Indian Prime Minister Narendra Modi announced a US$1 billion loan agreement between the Ex-Im Bank and the Indian Renewable Energy Development Agency (IREDA).
In a statement to PV Tech at the time, Sujoy Ghosh, country head, First Solar, India said: “Cost of capital is the single biggest contributor in the overall cost of energy from a PV plant today. US Ex-Im has been supporting the Indian Solar sector since 2011, and its credit support typically has extended tenure and lower cost as compared to local Indian debt.”
In 2011, First Solar and SolarWorld Americas secured deals in India after loans totalling US$103.2 million were made. Module maker Suniva has also benefitted from Ex-Im support.