What the BP Gulf Oil Spill Means to BP Solar

[THIS BLOG WAS UPDATED ON JUNE 16, 2010 - Please click this link for access]

The recent Deepwater Horizon oil rig explosion in the Gulf of Mexico left eleven dead and wide ranging debate about the future of offshore drilling. Clearly the full extend of damages has yet to be assessed and BP has agreed to pay the costs of the leak catastrophe, but ironically, one of the interesting questions coming out of this mess is what will become of BP Solar?

While BP Solar has been one of the major players in the photovoltaic solar panel industry over the past several years, rumors have been flying around the past couple of years that BP would be exiting the solar space. All along BP has held steadfast to its commitment to BP Solar, even while cutting 600 jobs last year. So, how will negative publicity affect BP Solar strategic partner relationships? BP Solar’s relationship with Home Depot comes to mind, as an example. BP Solar panels are the only solar panels currently offered to Home Depot customers. How will consumers react to the negative BP publicity? How much will BP Solar sales take a hit? Will it matter anyway, in the midst of a slump in retail traffic?

On the other, if BP remains committed to solar, does BP Solar represent a public relations opportunity to put a more positive face on who they are and where they are going? They are, after all, the only Big Oil company in the PV market. They have been and continue to be a major sponsor for the American Solar Energy Society (ASES) and the Solar Power International trade shows.

Installers that I have been speaking with are concerned. Many are taking a wait-and-see attitude, buying panels from other manufacturers while they wait. What is the extent of brand damage and will it be overcomable? And if the rumors of the past about BP getting out of the solar business had no real basis in truth, will the oil spill push the old rumor into the reality category? It’s ironic that the only Big Oil company actively participating in the PV solar arena, is the one who caused unimaginable damage from the “Drill-Baby-Drill” side of its business. It’s ironic that the a catastrophe involving the energy of the past could have such a negative effect on the energy of the future, but such is life when your corporate name is really British Petroleum.

Here’s to hoping that, in the end, BP Solar, Home Depot, BP solar’s partners and installers all overcome this unfortunate setback.