You are absolutely right to question the competiveness of Prime Star Solar. Prime Star Solar has its Michigan Equipment Center in Montague, MI which is 30 miles from my home. One of my friends has done some business with them in the past and he had nothing good to say about them.
If you look at the history of GE Energy with this company they obtained a majority stake in the company back in June 2008, so their announcement yesterday is curious.
If you go to Prime Star Solar's website it says:
We ARE NOT shipping commercial orders at this time. To discuss your future sales orders of substantial size (over 1 MW): firstname.lastname@example.org