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A Houston-based solar company is pulling out of its agreements to create hundreds of Phoenix construction jobs.

Earlier this year, Tessera Solar North America announced its plans to build a 250-megawatt power plant in Phoenix, which would have the capacity to power about 50,000 homes and bring in about $1 billion in private investments. The project was expected to create 300 construction jobs and 60 permanent jobs

However, the company is now backing out of that plan, citing financing challenges and a lack of market demand. Officials say that most utility companies in Arizona are interested in smaller-scale projects that can receive permits and be completed quicker.

In addition, Tessera has had trouble securing the financing it needs, because commercial loan agencies are more interested in backing projects that involve more developed technologies that have been on the market longer.

"We're not getting a whole lot of traction on the market," Peter Wilt, senior director of development for Tessera Solar, told The Arizona Republic, adding that it was best for the company to end its partnership with Phoenix so the city can find other bidders for the contract or make alternative plans.

Officials have already contacted Johnson Controls, a main competitor of Tessera, to see if that company is interested. If the project does not get completed, it could create a setback for Phoenix, which hopes to have 15 percent of the city's energy supplied by renewable sources by 2025.

It also will create a bigger problem for the greater Phoenix area's construction industry, which has added some jobs as of late, but continues to suffer the lasting effects of the economic recession.

During August, the Phoenix-Mesa-Glendale area's construction industry employed 88,300 workers, according to the U.S. Bureau of Labor Statistics. This is up from 86,800 workers during July, but a 5.4 percent decrease from last year.

Labels: Phoenix construction jobs