BP’s Solar Business on Verge of Sale to Kuwait-Backed Investor

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Oil giant BP is in advanced talks to sell its solar power business, Lightsource, to a consortium backed by Kuwait’s sovereign wealth fund, according to reports. The deal, which involves private equity firm Qualitas Energy and Wren House, the infrastructure arm of Kuwait Investment Authority, could mark a major shift in BP’s energy strategy as it moves away from its net-zero commitments. The Financial Times reported that the Kuwait-backed group is the highest bidder for Lightsource, which BP first invested in 2017. A final agreement is expected soon, though the transaction remains subject to regulatory and financial approvals. BP has not commented on the talks, but the sale aligns with its broader effort to divest non-core assets and refocus on oil and gas operations. Text
BP’s decision to pivot from renewable energy follows a reversal of its 2020 pledge to reduce oil and gas output by up to 40% and achieve net-zero emissions by 2050. In February 2025, the company announced it would abandon these targets, citing challenges in meeting renewable energy goals under its previous leadership. The company warned in early 2025 that the strategic shift would cost up to £3.7m in transition costs. This financial pressure has accelerated its efforts to sell Lightsource, a solar energy firm with 4 gigawatts of renewable power capacity operating in 15 countries, including the UK, the US, Australia, and New Zealand. Text
BP’s exit from the solar sector contrasts with its earlier ambitions. Lightsource, which it co-founded in 2017, was a cornerstone of its renewable energy push. The firm became one of the world’s largest solar developers, with projects spanning multiple continents. However, BP’s renewable initiatives under former CEO Bernard Looney failed to meet expectations, contributing to the decision to scale back. Text
The finalization of the transaction remains uncertain, but the scale of the bid suggests a strong commitment from the Kuwait-backed consortium.