This green energy company is leaving California for Texas
A San Jose-based technology company that sells roof shingles with integrated solar panels is the latest to announce plans to leave the Golden State for Texas.
GAF Energy will move its headquarters to Georgetown, Texas, on Dec. 13, the company announced in a notification document filed with state officials. The company said its decision was driven by better market opportunities in Texas, rather than an unfavorable business environment in California.
The company will lay off 138 employees based in California, including technicians, engineers and managers.
The San Jose headquarters, which is currently used for research, development and manufacturing of solar panels, was opened in 2021. Both in-person and remote employees will be affected by its closure, the notice states.
Required by the Worker Adjustment and Retraining Notification Act, or WARN, the notice must be issued by a company 60 days before a mass layoff.
GAF Energy, which is owned by Standard Industries, opened a manufacturing plant in Texas last year. The company plans to consolidate its operations into a new headquarters in the state, President Martin DeBono said.
“In light of ongoing changes in the solar industry, we are aligning our operations and team to focus on key markets where solar energy is most attractive to builders and homeowners,” a company spokesperson said in a statement. “This decision was not made lightly. We are grateful to our San Jose employees for their contributions to the company and are committed to helping those impacted by this transition.”
GAF Energy offers a more practical approach to rooftop solar by integrating solar panels directly into shingles, rather than installing them on the roof.
Consolidating to a Texas headquarters will help the company “gain efficiencies, foster stronger collaboration and partnership between teams, and better serve customers,” the spokesperson said.
Although Silicon Valley is known as a leading technology hub and incubator for young companies, many companies have left the state in recent years, complaining of strict regulations, high taxes and an expensive workforce.
Tesla moved its headquarters from Palo Alto in 2021, the same year that financial services company Charles Schwab moved from San Francisco to North Texas. Elon Musk moved the headquarters of his other companies – SpaceX and X – to Texas last year, as did Chevron, the oil giant that started in California.
Bed Bath & Beyond CEO Marcus Lemonis recently took aim at California and announced that the company would not reopen stores in the state, writing on
Economists say the state remains the world’s fourth-largest economy, has a diverse talent pool and is a hub of technological innovation.
GAF Energy did not cite defects in California’s business environment as justification for moving its operations to Texas. However, the company will suspend all operations in the Golden State.
