This green energy company is leaving California for Texas

A San Jose-based tech company that sells roof shingles with built-in 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 motivated by better market opportunities in Texas rather than an unfavorable business environment in California.

The company will lay off 138 California-based employees, including technicians, engineers and managers.

The San Jose headquarters, currently used for research, development and solar panel manufacturing, is set to open in 2021. Both in-person and remote workers will be affected by the closure, the notice said.

Required by the Workers’ Compensation and Retraining Notice Act, or warning, the notice must be issued by the company 60 days before the mass layoff.

GAF Energy, which is owned by Standard Industries, opened a manufacturing facility in Texas last year. The company plans to consolidate its operations at a new headquarters in the state, said President Martin Debono.

“In light of the ongoing changes in the solar industry, we are combining our businesses and our team to focus on key markets where solar is most compelling for builders and homeowners.” A company spokesperson said in a statement. “This decision was not made the right way. We thank our employees in San Jose for their contributions to the business and are committed to helping those affected by this transition.”

GAF Energy advertises a more practical approach to rooftop solar energy by placing solar panels directly on the shingles, rather than mounting them on top of the roof.

Combining the Texas headquarters will help the company “drive efficiencies, foster stronger collaboration and partnerships between teams, and better serve customers,” the spokesman said.

Although Silicon Valley is known as a top tech center and incubator for young companies, many companies have complained of strict regulations, high taxes and expensive labor in recent years.

Tesla moved its headquarters out of Palo Alto in 2021, the same year that financial services firm 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 the company would reopen stores in the state, writing in X that “California has created one of the most over-regulated, expensive and dangerous environments for business.”

Economists said 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 deficiencies in California’s business environment as a reason for moving operations to Texas. However, the company will suspend all operations in the Golden State.