Sept. 4 (Bloomberg) -- Solyndra Inc., a closely held maker of solar power systems, will get a $535 million loan guarantee from the U.S. Energy Department so it can build a photovoltaic panel manufacturing plant that will employ 1,000 people.

The department offered the Fremont, California, company the loan guarantee in March, pending Solyndra securing its portion of the financing. Vice President Joe Biden announced the guarantee today. Money for the loan guarantee came from the economic stimulus plan signed by President Barack Obama in February.

“This announcement today is part of the unprecedented investment this administration is making in renewable energy,” Biden said in a satellite address from Washington to the company’s headquarters. “By investing in the infrastructure and technology of the future, we are not only creating jobs today, but laying the foundation for long-term growth in the 21st century economy.”

The Obama administration is preparing to dole out about $83 billion in loan guarantees for energy projects that reduce greenhouse gas emissions. Lawmakers, trying to encourage a shift to clean-energy sources such as wind and solar, have sought to stretch government funds by using loan guarantees instead of grants or direct support.

Solyndra’s backers include Richard Branson’s Virgin Group Ltd.

“We expect additional loan guarantee announcements before the end of the year, but believe the program won’t gain real momentum until mid-2010,” said K. Whitney Stanco, an analyst for investment adviser Washington Research Group.

500 Megawatts

The loan guarantee covers 73 percent of the plant’s cost and the company is responsible for the balance, Stanco said in a report. The plant will have a manufacturing capacity of 500 megawatts a year. In 2008, solar power accounted for 514 megawatts of consumption, or a fraction of 1 percent of U.S. power use, according to the Energy Department.

The company said in March the project will create as many as 3,000 construction jobs and 1,000 long-term jobs.

Toyota Motor Corp. said last week it will shut a Fremont plant it has run with General Motors Corp. for 25 years. The car factory employs 5,400 people, including almost 4,600 union workers.

Solyndra said in July it has more than $2 billion in orders and is sending shipments to customers in Europe and the U.S.

To contact the reporter on this story: Daniel Whitten in Washington at dwhitten2@bloomberg.net

Last Updated: September 4, 2009 14:19 EDT