BP CEO Tony Howard recently said the company's most challenged alternative energy interest is in fact solar, as this type of renewable energy is simply not going to be able to catch up with conventional energy sources. The gap is just too big at the moment.

With several hundred million dollars of solar energy investments made by BP over the past years, the company is now moving away from making solar cell components, and outsourcing that part of its operations to Chinese manufacturers. This way, BP is cutting production costs, and is able to concentrate more on offering solar energy solutions to customers – if only they would come. The solar industry has seen hard times in 2008 and is still experiencing a slowdown due to the economic crisis and the fallen oil prices.

According to Howard, unless there is a step-change in solar technology, there will be no breakthrough that will bring solar more on the level of conventional energy sources. BP Solar targeted 800 MW of solar capacity sales in 2010, but that was before the company shut down production facilities in Sydney and Madrid, and reduced production in Maryland.