Recently, U.S. solar company GAF Energy filed a notice under the Worker Adjustment and Retraining Notification (WARN) Act, announcing plans to close its headquarters and R&D manufacturing base in San Jose, California, on December 13 and relocate its entire operations to Georgetown, Texas. This move will result in 138 employees losing their jobs.
According to media reports, the primary reason for the relocation is the more favorable market opportunities in Texas. The San Francisco Chronicle pointed out that GAF Energy’s strategic adjustment coincides with a period of tightening incentives for solar companies at both the federal and state levels: the federal government has reduced key tax credits, and California has cut some local subsidies, directly squeezing profit margins for solar installers and manufacturers.
In contrast, Texas has emerged as one of the most dynamic real estate markets in the U.S., with growing appeal for energy and technology companies. Analysts suggest that the state’s relatively relaxed regulatory environment is a key factor attracting businesses, providing solar companies with more flexible development opportunities.
A GAF Energy spokesperson responded to the adjustment, emphasizing that the company is actively adapting to industry changes. “In light of ongoing changes in the solar industry, we are adjusting our business and team structure to focus on core markets where solar energy holds the strongest appeal for builders and homeowners,” the spokesperson stated. “This decision was made after careful consideration. We thank our San Jose employees for their contributions and are committed to supporting affected team members during this transition.”
The 138 employees affected by the relocation include technicians, engineers, and managers, among other roles. Specific details about employee relocation arrangements have not yet been disclosed. Industry insiders suggest that, amid dual changes in the policy environment and market landscape, regional adjustments in the U.S. solar industry may become the new norm.
