The largest solar project in the world, Solar Star, is now operational in Kern County, California and demonstrates Berkshire Hathaway’s commitment to developing renewable energy assets.
Warren Buffett is famous for a number of bright ideas on investing, but this may be the brightest. Just how bright? About 579 megawatts’ worth of solar-generated power from a single facility. Financed by BHE Renewables, a wholly owned subsidiary of Berkshire Hathaway, Solar Star is the world’s largest solar project to date, and it began contributing power to the California grid on June 19.
Consisting of about 1.7 million SunPower solar panels, Solar Star will produce enough power to annually supply approximately 255,000 homes with electricity.
BHE Renewables will sell the electricity to Southern California Edison under a long-term power purchase agreement.
The deal is the latest example of the company’s commitment to acquiring renewable energy assets, and it demonstrates Berkshire’s belief that these assets can drive long-term growth as they have done in the past. Investors should anticipate more renewable energy deals like this in the future and be glad that the company is so forward-looking.