Warren Buffett Makes Big Solar Bet With $2B Topaz Purchase From First Solar (FSLR), Is The Bottom In?

It’s been a dismal year for green energy and solar stocks in particular.  Overcapacity, lower demand, shrinking selling prices and plummeting stocks has been the theme all year.  Investors and shorter term traders are looking for big news to spark a rally in solar and news that Warren Buffett is jumping headfirst into solar with a big $2 billion acquisition of the 550MW Topaz Solar Farm being built by First Solar (FSLR) may just be the catalyst for a sustained rally in solar stocks. 

=== > Click Here For Your FREE First Solar Analysis

If Warren Buffett believes solar is a good investment…  It kind of reminds me of the investment in Goldman Sachs a couple years ago when it appeared the world was falling apart.  Granted that was a nearly no risk deal, but then again that’s what Buffett looks for.  A great bargain with minimal risk.   Something the government wasn’t able to figure out (see Solyndra, see Evergreen Solar, see..).  Who needs the inept DOE when we have Buffett.  His investment in solar is worth paying attention to particularly with solar stocks trading at historic lows. 

Buffett’s MidAmerican Energy Holdings purchased what will be one of the largest solar farms in the world, expected to power up to 160,000 homes in California.  Pacific Gas & Electric will purchase electricity from the plant under a 25 year power purchase agreement.  MidAmerican calls the project a strategic move that will be viable WITHOUT government guarantees.  Here’s a quote from MidAmerican Energy CEO Greg Abel:

“MidAmerican is the No. 1 owner of wind-powered energy generation among U.S. rate-regulated utilities. Adding solar energy to our generation portfolio is a strategic move to invest in yet another renewable energy source.  Our investment in wind resources benefits both our customers and the environment, and our entry into the solar energy industry expands our renewable energy footprint and will help meet current and future energy needs in a manner that reflects our ongoing commitment to environmental respect and cost-effective generation.

“As energy needs continue to increase, the Topaz project will allow MidAmerican to produce renewable energy for thousands of Californians. This project also demonstrates that solar energy is a commercially viable technology without the support of governmental loan guarantees and reflects the type of solar and other renewable generation that MidAmerican will continue to seek to add to its unregulated portfolio.”

First Solar (FSLR) got a short lived jolt on the news yesterday before pulling back off the highs.  It’s down nearly 5% today.  That’s an indication that technical weakness remains, but the stock has been stabilizing in recent weeks, trying to put in a bottom.  It will be interesting to see if in fact this news does mark a bottom in the stock. 

One thought on “Warren Buffett Makes Big Solar Bet With $2B Topaz Purchase From First Solar (FSLR), Is The Bottom In?”

  1. I am interested in any news about the material graphene. can you help me?

Leave a Reply

Your email address will not be published. Required fields are marked *