Another Sweet deal for Buffett – Who pays? You do! Yesterday, First Solar (FSLR) announced that it had sold its interests in a big solar project called Topaz. The buyer was MidAmerican Energy Holdings, a subsidiary of Berkshire Hathaway. So Warren B. is behind the transaction. I think he got another sweetheart deal. This time, it’s the taxpayers who will be making Buffett richer. The transaction is between two companies. As a result there has been little disclosure of the actual terms and conditions. There are a number of angles to consider in this story. The Topaz solar project is in San Lois Obispo, California.
Bloomberg confirms my estimate on the completion costs of Topaz with this headline. Buffett has purchased the rights to build a solar farm. Buffett’s only condition to the deal is that the Power Purchase Agreement ("PPA") that Topaz has previously entered into is affirmed to Berkshire’s lawyer’s satisfaction. California’s monster electric utility, Pacific Gas & Electric (PGE), has entered into a 25 year PPA with Topaz. Notes: FSLR:NASDAQ GS Stock Quote - First Solar Inc. First Solar (@FirstSolar) sur Twitter. First Solar - Wiki. Technology[edit] First Solar manufactures cadmium telluride (CdTe)-based photovoltaic (PV) modules, which produce electricity with a thin CdTe film on glass.[10] In February 2013, First Solar created a cell with an 18.7% efficiency, a world record breaking its previous 2011 world record of 17.3% efficiency.[11] Corporate history[edit] In 1984, inventor and entrepreneur Harold McMaster founded Glasstech Solar.
McMaster foresaw the opportunity to manufacture low-cost, thin film cells on a large scale. After trying amorphous silicon, he shifted to CdTe at the urging of Jim Nolan and founded Solar Cells, Inc., (SCI) in 1990.[12] In February 1999, McMaster sold the company to True North Partners, an investment arm of the Walton family, owners of Wal-Mart.[13] John T. Walton joined the Board of the new company, and Mike Ahearn of True North became the CEO of the newly minted First Solar. In its early years, First Solar module efficiencies were modest, about 7 percent. Market history[edit]