Warren Buffett/Berkshire owned MidAmerican buys two large solar projects

Berkshire Hathaway owned MidAmerican Energy continues its moves into renewable energy, snapping up two solar projects under construction in Southern California from SunPower Corp. They will generate 579 megawatts of electricity. Last fall the company bought two wind farms north of Los Angeles with generation capacity of 300 megawatts.

The MAC Solar Index hit the bottom in mid-November (The Guggenheim Solar ETF NYSE: TAN tracks the MAC Solar Index). The index includes Chinese, European, and American solar companies, including First Solar, Yingli Green Energy, and SolarWorld.

But since mid-November it’s rebounded by a whopping 40 percent. More and more data suggests that we’ve hit the solar bottom and that’s likely what the classic value investing culture of Berkshire owned MidAmerican Energy is seeing right now—solar projects that can be picked up at good value as the companies supporting the industry recover.

What will be interesting to see is whether the acquisition efforts from investor owned utilities like MidAmerican spurs further investment in project development with the expectation that a buyer can be found for said projects.