GE and First Solar announced earlier this week an important step towards consolidation of the solar industry that will result in the loss of a new solar manufacturing facility in Colorado and, potentially 350 jobs. Clearly the announcement is frustrating for Colorado, a state we featured in EDF’s Clean Energy Economic Development Series, which highlights key road maps for maximizing economic development from clean energy markets.
But, the announcement includes lots of good news – which is probably more significant for the U.S.’s long-term solar power play as well as overall economic opportunity and job creation. In 2009, GE purchased PrimeStar Solar, a company first seeded at the Department of Energy’s National Renewable Energy Labs (NREL), located in Colorado. PrimeStar Solar (renamed Arvada research center) made significant advances in the efficiency of cadmium-telluride (CdTe) thin film solar panels. This lowered the cost of thin film solar panels overall and made them more competitive with traditional solar panels.
CdTe thin film solar panels require less material than alternative technologies – which lowers their cost – but their efficiency continues to lag behind traditional, silicon-based solar panels. The deal gives GE a large stock position in First Solar in exchange for giving First Solar the new CdTe thin film solar technology – essentially creating a key strategic partnership between the two companies.