In what may come as a surprise to some, BP Solar has revealed its intention to apply the brakes to its distribution network and module expertise in order to concentrate on project development. In a statement sent to its partners, the company explained that it had made the strategic decision in order to profitably grow over the long term.
BP Solar will now work to develop and capitalise large solar projects across the global markets, slowing down its module sales over the remainder of this year. The company has informed its distribution network of the change of strategy, stating its intention to cease the sale of modules once the inventory is exhausted. It is expected supply will dry up within the next two months.
In its statement the company said it will continue to meet all warranty obligations offered to distribution partners, as well as to installers and end customers.
In regard to the BP Solar Sold here Program, the company said it will keep its obligations until the end of 2011. In this sense, the use of the BP Solar Sold Here installer brand will be permitted until 31st December 2011.
“BP Solar deeply regrets the impact of such a decision to your business and will ensure that the transition period is managed properly to minimize the impact to your business,” outlined the statement.
All installers will receive an official letter from BP Solar in the next two weeks, confirming these details and how they pertain to the specific CIP contract with the company.
While this announcement has come as a shock to most, with some industry players criticising the company for its short-sighted decision, others expected the turn of events, claiming this was the only way the company could go in order to compete with aggressive and fast-paced module development market.