Solar layoffs continue with OptiSolar

Hayward, Calif.-based OptiSolar has become the latest victim of the credit crunch, laying off half its employees after it failed to raise a new round of funding.

The manufacturer of photovoltaic solar modules laid off 105 people at its panel assembly plant in McClellan Park, Calif., and 185 people from the module manufacturing plant and headquarters in Hayward.

The company says 75 employees remain at the panel assembly plant and 247 in Hayward. The Hayward plant produces modules that are assembled into panels at the McClellan Park facility.

Just last week, Canada's  Day4 Energy (TSX: DFE) announced layoffs for one-third of its staff, as it began to outsource production to Poland (see Day4 Energy lays off one-third of workforce).

Day4 made the cuts to avoid an inventory build-up. The cost of solar panels in dropping in Europe thanks to a growing inventory in Spanish ports (see Extra solar panels in Spain driving down prices). 

And in December, solar cell equipment maker GT Solar announced plans to layoff 25 workers, or 8 percent off its staff, from its manufacturing plant in New Hampshire.

OptiSolar said its difficulty in raising new money was to blame for the layoffs. The company is now seeking a loan from the U.S. Department of Energy.

OptiSolar made headlines last year when it announced a deal with California utility Pacific Gas & Electric to build a $1 billion, 550-megawatt thin-film solar plant (see PG&E mega solar deal sparks industry). That project is expected to begin taking deliveries of panels in 2010.

The company is now shipping panels to a 60-MW photovoltaic project in Ontario, Canada expected to be completed by the end of the year.

The company has reportedly raised about $300 million (see Two funds expand cleantech plans and Cleantech investment breaks all-time record).

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