Solaria, a U.S.-headquartered solar equipment manufacturer and installer, has secured €1.7 billion (~$1.8 billion) in financing from the European Investment Bank (EIB) through the InvestEU program. The financing will support the development of approximately 120 solar photovoltaic power projects, primarily in Spain, Italy, and Portugal, with a combined installed capacity of 5.6 GW.

Solaria’s project is underpinned by the InvestEU program, a financial initiative to catalyze additional investments totaling more than €372 billion (~$394.3 billion) from 2021 to 2027.

The company said by providing the equivalent of the annual electricity demand for approximately 2.5 million households and curbing greenhouse gas emissions by approximately 3 million tons of CO2 annually; the project would significantly contribute to the EU’s green transformation.

Long-Term Financing

The transaction involves a long-term project finance structure encompassing several loans, allowing financial institutions to participate within the financing framework.

The first of these loans, amounting to €278 million (~$294.6 million), has already been signed and will support the construction of solar photovoltaic power projects with a total capacity of approximately 1.08 GW.

More than one-third of the installed capacity from Solaria’s projects will be situated in less developed regions with a GDP per capita below 75% of the EU average. This initiative is projected to stimulate economic growth in these areas and generate an estimated 11,100 jobs annually during the construction phase, as estimated by the EIB.

The financing provided by the EIB is closely aligned with the REPowerEU Plan, which seeks to reduce Europe’s dependence on fossil fuel imports, enhance energy efficiency, and boost renewable energy production.

Solaria’s President, Enrique Díaz-Tejeiro, highlighted its pivotal role in accelerating the energy transition across Spain, Italy, and Portugal. He affirmed that with a roadmap target of achieving 6.2 GW by 2025, Solaria is set to become a significant contributor to the EU’s renewable energy landscape.

Recently, EIB and Spain-based independent power producer Iberdrola signed a loan agreement worth €1 billion (~$1.07 billion) to build 22 renewable energy projects with an installed capacity of 2.2 GW.

Earlier this month, EIB Group approved raising the funding volume for clean energy projects developed under the REPowerEU and Green Deal Industrial Plan by 50% to €45 billion (~$50.28 billion).