Two firms will receive $2 billion in loan guarantees from the US government to build solar power plants in Arizona, Indiana, and Colorado. These plants will create thousands of new jobs during construction.
A few hundred employees will be required to maintain the sites on a daily basis.
Obama ran for office on the promise that he would create new jobs in the construction and manufacture sectors of the green power industry.
"We're going to to keep competing aggressively to make sure the jobs and industries of the future are taking root right here in America," he said on Saturday.
The two firms to receive the loans are Abound Solar Manufacturing, responsible for thin film solar panel production, and Abenoga Solar, which will be building the world's largest solar plant at Gila Bend, near, Arizona.
These new power sources should considerably reduce carbon dioxide emissions.