Jennifer Granholm (Jennifer Granholm) of the US Department of Energy announced this month that the Loan Program Office (LPO) under the US Department of Energy, which has financed electric car maker Tesla, will be restored. The office will have the authority to include US$43 billion in loan incentives for large-scale renewable development ventures and emerging technology-based electric car production.
The US Department of Energy intends to spend billions of dollars in the electric car sector in order to encourage the manufacture and construction of electric cars in the US. According to the US energy protection association “Protecting American Future Energy” (SAFE), the electric vehicle industry will generate 647,000 jobs in the next five years. In terms of clean energy, LPO owns US$4.5 billion in loan protection rights that can be used for solar energy and energy efficient programs, accounting for almost 10% of LPO’s overall loan security rights worth US$43 billion.
There are three LPO departments.
Title XVII in energy, Advanced Technology Vehicle Manufacturing Loan Project (ATVM) in transportation, and the US Department of Energy’s Tribal Energy Loan Guarantee Project (TELGP) are the three major departments of LPO.
In the energy sector, Title XVII has given over US$25 billion in loan guarantees. Solar energy, wind energy, advanced nuclear energy, and geothermal are among the energy areas provided by the loans. It is widely acknowledged that Title XVII has aided the advancement of renewable energy by actively encouraging the use of solar energy in public utilities on a broad scale.
The loan scheme was intended to support public utilities’ plans to utilize renewable energy, but it has resulted in a steady stream of funding for private solar energy firms.
The solar industry in the United States earned more than $18 billion in financing in 2019. The solar energy industry in the United States continues to expand and thrive precisely because of the continuous infusion of funds. Solar energy is now one of the most rapidly expanding sectors in the United States. The cost of solar energy has decreased by 70% in the last ten years as a result of its increasing success.
This year, the industry is predicted to become the United States’ primary source of clean energy power production. There were more than $17 billion in loans for new technologies, including electric vehicles, before the Advanced Technology Automotive Manufacturing Loan Initiative (ATVM) went inactive.
The first two electric car factories in the United States, Nissan and Tesla, were sponsored by ATVM in 2010. Tesla then paid off all 465 million loans nine years ahead of time.
The ATVM loan has been used to build or rehabilitate factories in eight US states. Illinois, Michigan, Missouri, Ohio, Kentucky, New York, Tennessee, and California are the eight counties. These factories have so far manufactured millions of automobiles.