So even though solar power and panel companies are in the financial mire, like the rest of the world, it seems some mega solar projects are still getting the go ahead.

Southern California Edison from Rosemead, California, has teamed up with BrightSource Energy to provide 1300 megawatts of solar power, which it says will power almost 845,000 homes (press release). The deal sees SCE buying solar power rather than making it themselves.

“This landmark agreement illustrates the increasing demand for solar thermal energy as a reliable source of utility-scale renewable power,” said John Woolard, CEO of BrightSource Energy. But only last week, financial analysts Lux research announced that, as they had predicted previously, there is currently a huge over supply of solar panels.

We noted a few weeks ago about the confusing good news/bad news in the solar sector. This latest development simply adds to the confusion, as does the news from New Jersey, US’s largest utilities company PSG&E who announced a $773 million dollar solar project, where it would kit out all its properties with solar panels. This project shouldn’t be confused with similarly acronymed PG&E’s deal from last year, where BrightSource Energy could supply up to 900 megawatts (eventually) to the utilities company.

Perhaps the message is solar companies need to be further downstream in the solar power chain to survive. It’s smaller, younger, manufacturing companies that continue to suffer, like Applied Materials in Santa Clara, California which, according to Greentech Media is planning shutdowns and layoffs this week because there isn’t enough demand for their thin-film panels. Applied Materials apparently don’t expect to sign any new contracts for “the next few quarters”.