A widespread breakdown of its equipment in Sri Lanka and elsewhere has left the oil firm accused of abandoning a responsibility to impoverished communities while damaging the prospects of the wider renewable power sector in a world desperate to reduce carbon emissions following the Copenhagen climate change summit.
The rural electrification business under which the Shell systems were sold has now itself been passed on – as have most other parts of the group's solar business – but critics say that Shell, which made profits of $31bn in 2008, has a continuing role in ensuring former customers are not left vulnerable.
"Shell exited solar on a global basis, seemingly without due consideration to how after-sales service and warranty replacements would be provided, thereby damaging the very local solar industries it had earlier helped to create," said Damian Miller, a former Shell manager who now heads his own solar business, Orb Energy.
"In Sri Lanka, poor customers with average earnings of $1,500-$2,000 a month have bought Shell's solar systems. The system is equivalent to 30% of their annual income," he added. "They could only afford a system because they could get a loan from microfinance institutions or other banks. But now there are reports of thousands of Shell's
solar panels failing in the field and Shell seemingly is not replacing them."
http://www.guardian.co.uk/business/2010/jan/03/shell-sri-lanka-solar-warranty-row