SolarCity Forced to Curtail $1B Military Housing Project
- September 26, 2011
A national developer of rooftop solar systems says it will be forced to scale back plans to install rooftop solar installations on as many as 124 military housing developments because it will be unable to gain the Energy Department’s final approval for a $275 million loan guarantee by this week’s deadline.
Minus the government backing, SolarCity will carry out the project in only 11 states, a fraction of its original plan, reported the Financial Times.
The Energy Department earlier this month said it had offered a conditional commitment for a portion of the $344 million loan needed to finance the “SolarStrong” project. Last week, however, the San Mateo, Calif.-based firm said it would need an extension of the agency’s Sept. 30 deadline to meet the department’s requests for additional documentation required in the wake of the controversy over its loan guarantee to bankrupt solar-panel manufacturer Solyndra.
The Energy Department says it has not changed its loan requirements since the news about Solyndra. “All of the extensive due diligence and legal documentation simply cannot be completed by Sept. 30,” an agency spokesperson said.