BP Drops Solar Power Projects, Cutting Jobs

After a year dominated by uncertainties for major players operating on the solar power market, BP has announced its plans to let go of its eco-friendly projects developed in this sector.

The main reason is that, apparently, selling photovoltaic panels does not draw up a profitable line of business anymore, the Guardian informs.

BP officials have reached the conclusion that renewable power is far from being a gold mine, while compared with its dirtier sources of power: oil and gas that still require an annual investment of up to $20bn (€15.32).

Even though BP has tried to green up its name by becoming an important player on the market of PV and shifting “beyond petroleum,” it has started closing all its facilities and letting people go because it can't “make any money” in this sector.

So far, their decision has forced 1,750 workers to look for another job. Their motive is somehow justified, since the government has decreased the financial support for this line of business.

Plus there are other impediments, visible on an international scale, like China's “unlawful” competition on the PV market.

The mega power has been supplying consumers with cheaper solar panels, making the American manufacturers lose a lot of money. All in all, BP has highlighted that investments in solar panels can't pay off.

“The continuing global economic challenges have significantly impacted the solar industry, making it difficult to sustain long-term returns for the company," stated Mike Petrucci, chief executive of BP Solar.

At the same time, the company has suggested that its retreat from the PV industry does not mean that it will abandon every other sustainability goal previously announced.

BP is keen on backing wind power projects in America and the biofuel development all across the Globe. Moreover, it is talking about more than pocket change: $8bn (€6.12 billion) invested until 2015 to show impressive results in these two fields.