Why is Warren Buffett investing in solar? Because he sees the future.

REW: “In its first 12 months in business, MidAmerican Renewables has acquired some of the largest solar projects in the world.”. “….When MidAmerican Renewables entered the market in 2012, it came with significant financial backing. Its parent is Berkshire Hathaway’s MidAmerican Energy Holdings Company, a company with US$11.2 billion in annual revenue and $48 billion in assets. The enterprise includes a natural gas pipeline venture, U.S. and U.K. electric utilities and an international energy development firm. MidAmerican’s utilities own and operate generation, including renewables. But the company wanted to pursue solar, wind, geothermal, and hydroelectric projects through a non-utility, competitive business. Thus, MidAmerican Renewables was born. ….when asked why MidAmerican bought the large solar projects, Paul Caudill, president of MidAmerican Renewables solar division, first talked about corporate commitment to reducing carbon footprint. ‘One of our core principles is environmental respect’, he said. But then Caudill quickly moved on to the business fundamentals of risk, capital and market dynamics. ‘We see solar and wind assets as very, very solid long-term investments,’ he said. Not risk free, he added, but good plays for MidAmerican in terms of managing risk and deploying capital. Right now gas prices are at a ‘very, very low ‘ levels, he said. ‘You can almost be assured energy prices will rise. When I say energy price I’m talking about electricity prices to consumers’. With electricity prices rising and solar prices falling, solar becomes an increasingly appealing proposition.”