Silfab Solar to ramp up production at solar cell facility in Fort Mill, South Carolina with $100m financing

Silfab Solar Inc., North America’s top photovoltaic (PV) module manufacturer, has secured $100 million in new funding to ramp up production at its state-of-the-art solar cell facility in Fort Mill, South Carolina. The company is leveraging this financing to address the surging demand for domestically produced solar products while reinforcing its commitment to sustainable energy solutions. The move positions Silfab as a leader in the reshoring of the PV supply chain, creating more U.S. jobs and reducing reliance on imported solar panels.

The funding comprises $50 million in equity investment, led by ARC Financial Corp. with contributions from existing co-investors, and a $50 million senior secured Green Loan orchestrated by Breakwall Capital. SR Alternative Credit LLC also participated in the Green Loan, which received a second-party opinion from Sustainable Fitch for its strong alignment with global Green Loan Principles. Sustainable Fitch rated the transaction’s adherence to these principles as “Excellent,” bolstering its environmental credibility.

Reshoring solar manufacturing to meet U.S. demand

Silfab Solar is taking a strategic step to reshore manufacturing, aligning with rising market and policy demands for American-made clean energy solutions. According to the company, its latest U.S. facility, set to begin operations by the end of 2024, will significantly increase domestic solar cell and module production capacity. The investment underscores Silfab’s role in reshaping the solar energy landscape by fostering energy independence, reducing carbon emissions, and strengthening the domestic supply chain.

Silfab’s President and CEO, Paolo Maccario, highlighted the growing need for domestically produced clean energy solutions. He attributed the company’s expansion to the robust support from investors and its commitment to creating a sustainable supply chain for PV modules. Maccario noted that increasing U.S. production capacity would not only meet the demands of Silfab’s customers but also support job creation and environmental goals.

Breakwall Capital’s President, Daniel Flannery, praised Silfab’s efforts to bolster domestic solar manufacturing. He remarked that the company’s capacity expansion is vital to addressing the domestic content needs of its customers and advancing broader industry reshoring objectives.

Expert-backed growth strategies

The financing was facilitated by a team of industry experts and legal advisors. Norton Rose Fulbright LLP acted as Silfab’s legal counsel, while Breakwall Capital was represented by Kirkland & Ellis LLP. ARC Financial Corp.’s legal matters were handled by Stikeman Elliott LLP, and RCT Solutions provided independent engineering consultancy services. This robust support structure underscores the depth of expertise driving Silfab’s strategic growth.

Powering a greener future

Silfab Solar’s commitment to sustainability extends beyond financing. By reshoring solar manufacturing and utilising environmentally responsible practices, the company is actively reducing the carbon footprint of its products. This aligns with broader industry efforts to mitigate climate change and promote renewable energy adoption.

The Fort Mill facility, central to this expansion, will further establish Silfab as a leader in the U.S. solar manufacturing space. As the demand for clean energy continues to soar, the company’s focus on domestic production and sustainability is poised to strengthen its market position while driving significant environmental and economic benefits.