But everything did not go as planned.
Murphy and a business partner began working with NREL in 2006 to develop a thin-film panel technology that uses a compound called cadmium telluride. They started building PrimeStar Solar with the help of Zweibel, who ended up leaving NREL to join PrimeStar. The small company seemed on track for a major scale-up when General Electric expressed interest, began buying shares, and eventually bought the startup in full in 2011. GE's plan was to build a solar-panel manufacturing plant in Aurora.
Mark Manger
Lori Maloney lost some of her land — and much of her sense of security — to NREL's expansion.
Mark Manger
The Department of Energy's Jeff Baker has been heading the NREL expansion project.
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PrimeStar was a major success story for NREL — a shining example of how a small company can partner with the national lab to develop cutting-edge technology, reach commercial success, and even give back to Colorado by bringing new manufacturing jobs to the state. But the story of PrimeStar took an unfortunate turn this summer when GE called in its Colorado employees and announced that about seventy of them would be laid off and that the Aurora plant would be put on hold for at least eighteen months. News of layoffs reached PrimeStar employees the same week that Abound Solar, a Loveland-based solar company that had developed a similar technology, announced it would officially file for bankruptcy, affecting 125 employees.
The backdrop to the bad news at both companies is that the United States is struggling to respond to aggressive pricing competition from China. Simply put, there is an international oversupply of manufacturing capacity in the solar industry, making it impossible for smaller companies in the U.S. to stay afloat.
Even so, GE PrimeStar is continuing to invest in a technology that, immediately after the layoffs were announced, Murphy worried wouldn't be commercially viable even eighteen months from now. "I am clearly disappointed that I see PrimeStar...kind of collapsing," he said at the time.
Different materials are used for photovoltaic solar technologies, including crystalline silicon and thin-film technologies; the latter includes cadmium telluride, which is what PrimeStar has been developing. Because of a major oversupply in crystalline silicon, manufacturers of that technology have been forced to innovate and improve the product to stay competitive. And they have, Murphy says, developing much more cost-effective technologies. A consequence of this, however, is that the competitive advantage of cadmium telluride is not as wide as it was in 2006.
For its part, GE says it's sticking with cadmium telluride and is confident that it can improve the efficiencies of those technologies and successfully manufacture solar panels — in an Aurora plant — sometime in the near future. And Murphy says that he recently heard more promising news from GE and is more confident than he was in July that GE PrimeStar may be able to develop the innovations it needs to stay afloat.
The Obama administration sees no reason to be concerned about the solar industry. "Any time you're dealing with an emerging future on energy, you're always going to have successes and you're going to have setbacks," Ken Salazar responds when asked about GE PrimeStar's plant postponement and Abound's bankruptcy. "And President Obama and I remain very confident that we're moving in the right direction."
In a lengthy statement responding to news of Abound's bankruptcy, DOE spokesman Damien LaVera points out that last year, the global market for renewable energy reached a record $260 billion and that America's solar industry now employs 100,000 workers, doubling since 2009. "In such an intense competition and with the price declining 47 percent last year alone, not every company, nor every investment, will be a success," he says. "But America will be stronger and more competitive if we continue to support and build a thriving solar industry here at home."
Investments in innovative companies always carry risks, LaVera notes, but no matter what, "America must continue playing to win in the clean-energy race."
And will NREL's expansion be a win?
Zweibel puts it this way: "If you develop new technology that reaches technical success but is out-competed by a country that is essentially doing a vertical integration of the whole industry...it means that you don't get anywhere. You develop new technology, but you can't commercialize it."
But no matter the challenges, Murphy still considers NREL's work vital. "If we try and grade and rank them [based on] how many wins versus losses we have, we're missing the big picture of what research and development is slated for," Murphy says. "It's about gaining knowledge."
"Energy is a global market, and manufacturing is a global market, too," says the DOE's Baker. "Our job really is to continue to push the bounds of technology that gives us the edge. It's one thing to have inexpensive labor...[but] we're pushing the bounds of technology to allow the United States to really reap the value of that and maybe neutralize a little bit of that."
That's why in recent years, NREL has shifted priorities to focus on commercialization. "The role of NREL is to work with the private sector," Arvizu says. "Most of the things you see us do these days are in conjunction with market players."
As of this past January, NREL had agreements in place with 448 industry partners, 65 educational partners, 28 nonprofits and 15 government entities. The facility also has more "cooperative research and development agreements" — written contracts between a company and a government agency — than any other DOE laboratory.