Shell Accused of Refusal to Honor Solar Panel Warranties

Royal Dutch Shell, the largest oil and gas company in the world, is yet again roiled in environmental controversy. Shell’s solar division grew to be a world leader in solar power systems over the last decade or so, especially in developing countries. Here’s what appears to have happened: Since the glory days, Shell has sold off most of its solar activities. Many of those systems have subsequently failed, with Shell allegedly refusing to pick up the tab.

Much of the current problem stems from Sri Lanka, where roughly 700 systems have failed and local solar suppliers are now in danger of going out of business. Shell counters the allegations by insisting that all past, present and future liabilities were passed on with the sale. Shell Solar Sri Lanka was sold to Environ Energy in 2007. Nonetheless, both the World Bank and several green energy companies are looking to Shell to resolve the situation.

The circle of allegations goes something like this: Local Sri Lankan companies and system owners have failed systems to deal with, but can’t afford to cover repair costs on their own. They are accusing Shell of ignoring warranty obligations. Shell, as mentioned, says that all liability issues should be solved through Environ Energy and SolarWorld, which purchased Shell’s solar manufacturing arm in 2006. Environ Energy, in turn, claims that SolarWorld will not honor warranties without proper documentation being present, documentation which, Environ Energy claims, was destroyed by Shell prior to handing over manufacturing to SolarWorld. Shell, as you might expect, claims this is not true.

Shell, a finalist for the Angry Mermaid award for the worst anti-environmental corporate lobbyists in Copenhagen, enjoyed profits of $31 billion last year. The World Bank and environmentalists are in part upset because the resources to settle all warranty issues are in the range of hundreds of thousands of dollars - a lot of money to fledgling solar companies in the developing world, but a drop of water to a multinational the size of Shell. Trapped in the middle of the fight is the Sri Lankan solar industry that Shell helped to create, and now, if allegations are true, may be leaving for dead.

Via The Guardian