MassDevelopment has given a plastics recycler a loan of $758,460 to purchase and install solar panels on the roof of its manufacturing plant in South Deerfield, the first such loan to be distributed in Western Massachusetts.

Pro Pel Plastech said it expects the solar installation to power a quarter of its electricity annually, reducing its utility expenses by 25 percent and creating a handful of jobs.

"The loans fill a gap for companies that are trying to do these energy-saving projects," and the solar installation is just the kind of environmentally-friendly activity the state wants to support, said Kelsey Abbruzzese, MassDevelopment’s communications director.

MassDevelopment’s Green Loan Program bridges financing gaps between project costs and energy-efficiency rebates or subsidies provided by utility companies and federally sponsored programs. Massachusetts is one of seven states that provide tax credit incentives for solar generated electricity, and Pro Pel Plastech will likely use solar renewable energy credits for the project.

During fiscal 2011, MassDevelopment financed or managed more than 300 projects that generated $3.8 billion of investments in the state’s economy. These projects are projected to create more than 10,000 jobs – 2,547 permanent and 8,129 construction positions – and build or rehabilitate more than 1,000 residential units, according to information provided by the state agency.