The agreement by investor Warren Buffett's MidAmerican Energy Holdings to buy a $2-billion photovoltaic farm in San Luis Obispo County could bring a ray of financial sunshine to the battered solar-energy industry.
The scale of Buffett's foray into this sector of the renewable energy scene is considerably more modest than his $34-billion purchase of BNSF Railway, but it could provide the same kind of boost to the solar power business that the 2009 acquisition did to the railroad industry, experts said.
"In a lot of ways, this is classic Warren Buffett," said Bruce Bullock, executive director of the Maguire Energy Institute at Southern Methodist University. "He comes into an industry that is starving for capital investment. At the same time, this is something that also tells people it's time to take solar power seriously."
MidAmerican is buying the 550-megawatt, thin-film photovoltaic solar energy development called Topaz Solar Farm from First Solar Inc. of Tempe, Ariz., the two companies said Wednesday. How much the Berkshire Hathaway Inc. subsidiary is paying for the solar project, which will be able to generate electricity for about 160,000 homes, wasn't disclosed.
First Solar will build and operate the solar plant for MidAmerican, the companies said.
The U.S. solar industry has struggled for several reasons. It has been bludgeoned by falling solar-panel prices and, some say, unfair competition from China.
Warren Buffett-owned company to buy California solar farm - latimes.com
The scale of Buffett's foray into this sector of the renewable energy scene is considerably more modest than his $34-billion purchase of BNSF Railway, but it could provide the same kind of boost to the solar power business that the 2009 acquisition did to the railroad industry, experts said.
"In a lot of ways, this is classic Warren Buffett," said Bruce Bullock, executive director of the Maguire Energy Institute at Southern Methodist University. "He comes into an industry that is starving for capital investment. At the same time, this is something that also tells people it's time to take solar power seriously."
MidAmerican is buying the 550-megawatt, thin-film photovoltaic solar energy development called Topaz Solar Farm from First Solar Inc. of Tempe, Ariz., the two companies said Wednesday. How much the Berkshire Hathaway Inc. subsidiary is paying for the solar project, which will be able to generate electricity for about 160,000 homes, wasn't disclosed.
First Solar will build and operate the solar plant for MidAmerican, the companies said.
The U.S. solar industry has struggled for several reasons. It has been bludgeoned by falling solar-panel prices and, some say, unfair competition from China.
Warren Buffett-owned company to buy California solar farm - latimes.com