BP eyes finalising sale of solar arm to Kuwait-backed wealth fund

Oil giant BP is in advanced talks to sell its solar power business to an investor backed by Kuwait’s sovereign wealth fund as it moves away from pushing net zero. Private equity firm Qualitas Energy, and Wren House, the infrastructure arm of Kuwait Investment Authority, have joined forces to bid for Lighthouse, BP’s solar business. The Kuwait-backed consortium is reportedly the highest bidder in the sale of Lightsource, which BP first invested in back in 2017, and a deal is expected soon, according the the Financial Times.

However, the transaction has not yet been finalised so still has a risk of falling through. The sale is part of a push to sell BP’s assets following it backing down from a green energy shift it pushed in 2020 and then decided to abandon last year. Green energy row back for BP In February 2025, the British oil company told shareholders it would roll back its green targets after setting itself ambitious transition targets five years ago.

BP had originally pledged in 2020 to reduce its oil and gas output by up to 40 per cent as it ramped up its renewable goals over the next 10 years. It also agreed to eventually become fully net zero by 2050. The FTSE-100 energy firm has been doubling down on efforts to prioritise oil and gas again in an attempt to slash debt and boost profit after renewable energy plans fell short under its previous chief executive Bernard Looney.

The energy giant warned at the start of the year the row back on its net zero plans would cost it up to £3.7m as it sought to rethink its low-carbon strategy. BP was already seeking a new partner for Lightsource, which boasts 4 gigawatts of renewable power capacity and operated across 15 countries including the UK, the US, Australia and New Zealand, before deciding to sell it.

BP declined to comment.