OptiSolar Sells Unfinished Projects to First Solar

So far the solar industry has remained strong throughout the recession – creating new jobs instead of layoffs. Sadly, OptiSolar, a solar panel manufacturer based in Hayward, California, wasn’t one of them. Recently, they were forced to lay off 290 of their 600 employees after failing to secure financing to finish a manufacturing facility in Sacramento, a facility where they had planned to build the solar cells and other components needed to construct the large-scale solar installation projects already in the pipeline.

But, for every bit of bad news there’s a bit of good news, and that’s where First Solar steps in. OptiSolar has agreed to sell its portfolio of unfinished solar farms to First Solar Inc., of Tempe, Arizona. The maker of photovoltaic panels will pay $400 million in First Solar stock to buy the large-scale outstanding projects, which they plan on completing.

It is anticipated that this new arrangement could result in the creation of 400 new jobs in California – which is actually only 110 new jobs when calculating the 290 layoffs from OptiSolar.

As part of the deal, First Solar will honor a contract between OptiSolar and PG&E by constructing a 550-megawatt solar plant in San Luis Obispo called the Topaz Solar Farm, scheduled to open in 2011 and be fully functional in 2013, pending state approval.

They’ll also take over negotiations to complete an additional 1,300 megawatts of solar projects that OptiSolar had started and secure the rights to 210 square miles of California desert land from OptiSolar to construct solar plants.

The next step, per Mike Ahearn, First Solar’s CEO, will be “Taking over OptiSolar’s projects as well as its development team to start delivering multi-gigawatts of solar power to U.S. utilities over the next several years.”

OptiSolar now plans to focus on manufacturing and technology and has applied for a $300 million loan guarantee from the Department of Energy to complete its facility in Sacramento.

Links:

http://www.mercurynews.com/ci_11821776?IADID=Search-www.mercurynews.com-www.mercurynews.com
http://www.latimes.com/business/la-fi-solar3-2009mar03,0,5708385.story

Posted on March 24th in Solar News by Beth.