BP Solar ends operations

After almost 40 years in the solar industry, Europe’s second-largest oil company has decided to wind down it’s solar venture. According to an internal letter from Mike Petrucci, CEO of BP’s solar unit, the company’s solar arm has become unprofitable.”The continuing global economic challenges have significantly impacted the solar industry, making it difficult to sustain long term returns for the company, despite our best efforts,” wrote Petrucci. The closure of the division, effective December 21, impacted approximately 100 employees worldwide.

BP Solar is but another of the solar firms to buckle due to industry oversupply and falling prices. However, this news is not unprecedented: BP’s solar arm began to scale back in 2008. This July, BP announced it would focus on large-scale projects, abandoning domestic and industrial rooftop initiatives altogether.

This closure also means means BP will exit multiple large-scale projects in the U.S. and Australia, though a $937 million project planned in Australia will be completed. The company will sell stakes in the over 150 MW of solar projects developed around the world.

The closure of BP Solar comes after a rough year for solar, with Solyndra’s high-profile bankruptcy, the closure of many other PV firms, and a brewing trade dispute between Chinese and U.S.-based PV firms.