UPDATE 1-US DOE offers loan aid for solar panel project

The U.S. Energy Department on Wednesday said it has offered a partial guarantee for a $1.4 billion loan for a project that will install solar panels on industrial buildings throughout the country.

Known as Project Amp, the solar generation project will install about 733 megawatts of photovoltaic solar panels. The power generated by the panels would go directly to the electrical grid, instead of powering the buildings where the panels will be installed.

NRG Energy (NRG.N) has committed to be the lead investor for the first phase of the project, which will install panels on about 750 rooftops owned and managed by Prologis (PLD.N) over the course of the entire project.

NRG also has the right of first offer for the rest of the program and will provide development resources and project expertise.

Bank of America Merrill Lynch (BAC.N) will act as the sole financial advisor and lender for the transaction, which is being executed through the Energy Department's Financial Institutions Partnership Program.

The department will guarantee 80 percent of the $1.4 billion loan, Bank of America said in a statement.