Unit 3 Micro: Sub Normal Profits - BP Leaves the Solar Industry
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British Petroleum has decided to exit the solar energy energy industry claiming that the business has become unprofitable because of excess supply and falling prices. In 2011 a number of solar firms have gone out of business including California’s Solyndra and Germany’s Solon. BP will focus instead on investing in other renewable energy sectors including wind power and biofuels.
Whilst the decision by BP to exit the industry appears significant, infact total global investment in solar power continues to rise. MidAmerican Energy Holdings owned by Warren Buffett have agreed to purchase a $2 billion solar project under development in California and a 49 percent stake in a $1.8 billion plant in Arizona.
Google Inc. and KKR & Co have announced a joint venture to pump money in four California solar power plants with total capacity of 88 megawatts. The powerful search engine business uses a huge anount of energy every year and has committed itself to large scale investment in renewable energy supplies to help power their server farms.
Recently the British government has halved the subsidy available under the feed-in-tariff scheme available to households and businesses that have solar panels installed on their buildings. The decision to cut the subsidy is being challenged in the courts by a collection of industry suppliers and groups such as Friends of the Earth
This channel 4 news report looks at the cut in solar subsidies
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