BP solar profits slump

BP’s renewables unit suffers as overall profits crash by two-thirds

BP has reported a slump in sales of solar panels and falling profits at its alternative energy division. Overall, BP group profits fell by almost two-thirds in the first three months of the year compared with the same period last year. The company mainly blamed lower oil prices and higher taxes at its Russian subsidiary TNK-BP.

Earlier this month the oil group said it was axing 620 jobs at its solar energy division in the US and Spain because of an oversupply of solar equipment in the market and the recession. The job cuts are equivalent to more than a quarter of the workforce.

BP said today its solar sales during the quarter would generate 15MW of power, down from 34MW in the same period in 2008. BP said this reflected “ongoing weak demand in the market”.

Losses from the unit, which covers its alternative energy operations