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Silfab Solar Inc., a leading photovoltaic (PV) module manufacturer based in Burlington, WA, has successfully raised $100 million in funding to expand its manufacturing capabilities. The funding consists of a $50 million equity investment and a $50 million senior secured financing, marking a significant step in the company’s efforts to increase domestic production of high-efficiency solar modules in the U.S.
U.S. Solar Manufacturing
The $50 million equity investment was led by ARC Financial Corp. and participated through their co-investors. Apart from the equity round, Silfab has also raised $50 million in senior secured financing, nicknamed a “green loan”, which is led by Breakwall Capital, a leading energy-focused asset management firm. The company expects to use this capital to expand its solar cell manufacturing plant based in Fort Mill, South Carolina. This facility, commencing later this year, is targeted to produce 1 GW of solar cells and add 1.3 GW of module capacity to cater to the increasing demand for locally manufactured solar energy components.
Expanding Operations and Strengthening the Supply Chain
Silfab Solar, which also operates facilities in Washington State and Toronto, Canada, specializes in designing, developing, and manufacturing premium-quality, high-efficiency PV modules. The company’s current production plants feature automated lines that adhere to ISO 9001:2015 quality management standards, ensuring the highest production and manufacturing standards.
Expanding its U.S. footprint will help Silfab increase its capacity to supply solar products approved under the Buy American Act, which supports the nation’s economy and the burgeoning clean energy sector in North America. The new facility in South Carolina is well-positioned to further the strength of the U.S. supply chain by developing solar cells and modules that are tailored to the needs of the North American market.
“American-made clean energy is and will continue to be in huge demand. We are grateful for the continued support of both existing and new investors in our mission to lead the reshoring of the PV supply chain – ensuring a sustainable supply of U.S.-made PV modules,” stated Paolo Maccario, CEO of Silfab Solar.
Company’s Sustainable Financing Model
The green loan, based on the principles that organizations such as the Loan Market Association and Asia Pacific Loan Market Association lay out for Green Loan Principles, has been provided with a second-party opinion from Sustainable Fitch. These principles will be followed by the company’s green loan financing model, so the funds applied through this model are used in support of the transition to renewable energy resources while in conformity with the global sustainability goals. Sustainable Fitch praised the alignment of the green loan as “excellent,” confirming that it meets high standards of environmental importance.
The funding raised will help Silfab Solar achieve its goal of scaling up its U.S.-based production as it contributes to the country’s efforts in pushing clean energy innovation. Its move to increase domestic production and decrease its imports is an attempt to minimize its carbon footprint and make new jobs for others in this solar industry, a further push to the economic benefits from a green energy transition.
The Reshoring Effort and Growing U.S. Market Demand
Silfab’s investment in U.S. manufacturing, meanwhile, forms part of a much bigger push to reshore the solar supply chain and less rely on foreign imports. As the U.S. government pushes forward with a robust interest in clean energy and renewable resources, domestic solar production has also been a priority for both private and public sectors. A sustainable, American-based supply chain for solar modules will be critical in making sure that increasing demand for clean energy is met alongside a growing energy requirement and job creation opportunities in the renewable sector.
Silfab’s new plant and emphasis on high-quality, domestic production come at a timely moment as the solar industry continues to grow rapidly throughout the U.S. Industry insiders indicate that, over the next decade, demand for solar power will surge in tandem with the support it finds with government incentives and growing environmental awareness among consumers and businesses.
The Future: Living Sustainably
Silfab’s expansion into the U.S. market and focus on reshoring the solar manufacturing process marks an important step towards boosting clean energy capacity in North America. The company’s work supports broader goals to combat climate change, reduce emissions, and spur local economic development through green jobs.
With this $100 million in new funding, Silfab Solar is well placed to lead the way in the redefinition of the solar energy landscape, making clean, affordable energy available and promoting sustainability. As the company continues increasing its production capacity in the new facility in South Carolina, it is well placed to play a key role in growth in renewable energy infrastructure in the United States.
“Silfab’s expanding U.S. footprint and increase in domestic content mean more jobs for Americans and a smaller carbon footprint than imported panels,” Maccario concluded, adding that the company’s growth would be good both for the U.S. economy and the environment.
