Buffett Gets High Rates, U.S. Incentive in $2 Billion Solar Bet – Businessweek

7 Dec

By Christopher Martin

Dec. 7 (Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc., which agreed to buy a $2 billion solar farm in California may have picked the right time to invest in the industry.

The 550-megawatt Topaz project will qualify for a federal incentive because it began construction last month, and will sell power under a long-term contract that was completed before prices for solar panels fell 44 percent in the last year. Berkshire’s MidAmerican Energy Holdings utility unit and First Solar Inc., the project developer, announced the deal today.

Topaz, which will use First Solar panels, may be the last large solar farm to qualify for the U.S. Treasury Department incentive program, which is set to end this year. It will likely sell power at a higher price than projects that are seeking utility contracts now, said Paul Clegg, an analyst at Mizuho Securities USA in New York.

via Buffett Gets High Rates, U.S. Incentive in $2 Billion Solar Bet – Businessweek.

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