Cannot restore from Time Machine or Reinstall - MacBook Pro Yosemite

Hi all,
I recently started using a new Mac (Macbook Pro 15" with Yosemite) about 2 weeks ago. Upon startup it asked whether I wanted to encrypt and I said yes. It then froze for about 30min with the spinny wheel. After the startup was finally complete I used it normally for the next two weeks but the FileVault encryption in Security & Privacy never completed. It was stuck on "encryption paused" and underneath said "Connect to power adapter to continue encryption". Nothing I did fixed the problem. I then did a Time Machine Backup onto a USB with plans to restore from Time Machine. The backup went successfully with no issues. I put the Mac into recovery mode (command+R) and did Restore from Time Machine Backup. It was able to find my Time Machine Backup on the USB, and in the next window "Select a Destination" it found my HD. I clicked restore and there was an immediate error saying that I should restart the computer and try again. From then on in "Select a Destination" it now says "No Time Machine backups were found." This is strange because I already selected the time machine backup and should be looking for a destination now, but regardless nothing can be found.
From there I went to Disk Utility and verified. There didn't appear to be anything wrong. I did repair disk and it didn't seem to do anything.
Then I tried to do a Reinstall OS X. On "Select the disk where you want to install OS X" the only options are my USB with the backup, or "Recovery HD". If I click Recovery HD there is a pop-up saying "This disk is locked." There are no other choices for install, and leaving Recovery mode doesn't appear to be possible.
Does anyone have a solution to this? So far my experience with Yosemite on two different macs has been torture and I do not recommend.
Thanks!

You have a warranty. Take it back and ask the store to fix it for you. You do not need to encrypt the drive, but the Yosemite installation does so automatically unless you select the option not to do so during the install process. You need to look for that carefully. As of now you would need to turn off FV2 to decrypt the drive which takes about as much time as encryption does - quite a while unless you have a small capacity SSD.

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