Apple’s solar business will grow to about $2.5 trillion, the company’s CEO Tim Cook announced Tuesday, but Apple will remain an energy company.
The solar business, which Apple has owned since 2013, will grow by about 20% annually as the company ramps up its solar energy production, Cook said.
Cook said Apple will build its own solar farms to power its headquarters, factories, data centers and retail stores.
He said that this will lead to more solar installations than it had when Apple first started producing solar panels.
The company also plans to build its first gigafactory in Mexico and build solar panels in California, which it will sell to customers.
The new solar business is the first to see profitability after Apple sold the rights to SolarCity, which built and installed solar panels at its factory in Fremont, California.
SolarCity was valued at about $US1.3 billion by the company when it was acquired in 2016.
Cook, who is stepping down from his position as CEO at the end of this year, said the solar business was going to be an enormous opportunity for Apple.
He noted that the solar industry is in a boom period and Apple was going into it with the idea that we’re going to generate enough electricity to power a whole lot of the world.
Apple plans to invest $100 billion in solar and $100 million more in battery storage in coming years.
Apple’s $1.5 billion investment in SolarCity and $1 billion investment from SunPower was a big deal for the solar and battery markets.
Solar panels on a wall in the solar farm of a factory in Reno, Nevada, in 2018.
(Carolyn Kaster/Associated Press) SolarCity CEO Lyndon Rive said Apple’s investment will bring the number of solar projects on the market to around 1.5 GW.
Apple will be able to provide about half of that amount of power to the world, Rive told CNBC.
Solar farms are typically used to generate power to run industrial machines, like power plants, Rives said.
Rive also said Apple has been investing in solar projects in Mexico, where it has factories and factories that generate electricity for local power plants.
Rives also noted that Apple has already signed contracts for 10 gigawatts of solar in Mexico.
Apple also announced it will build about 700 new battery storage facilities in the United States.
Solar, batteries and other renewable energy sources have been growing at a rapid pace.
The U.S. installed about 6 gigawatts (GW) of renewable energy capacity in 2016, a number that has doubled since 2014, according to the U.N. Energy Agency.
The United States will continue to grow its renewable energy production in 2017, and the U,S.
is projected to be the world’s top renewable energy producer by 2020, according the Energy Department.
More than one-third of the power generated in the U.,S.
in 2017 came from renewable sources.
In 2017, the U S. exported more renewable energy to China than all other countries combined, with exports to China accounting for more than half of all U. S. exports.
RIVE said Apple is also planning to install solar panels on its headquarters in Cupertino, California, to generate electricity.
The factory will be home to Apple’s research and development office, and Rive noted that its solar power will power a few of its retail stores, as well as the facility’s headquarters.
The announcement came as the solar market has been booming in the last few years, fueled in part by an increase in the demand for batteries for mobile devices.
Apple announced a battery backup program last year, but it has since scaled back that program, as battery storage has become cheaper and easier to manufacture.
RIVES said the company is building solar farms in Chile and the United Arab Emirates.
He also noted Apple’s new solar farm in Nevada will produce about 200 megawatts (MW) of power and will eventually be a hub for manufacturing solar panels for other manufacturers.
Cook also said he has a plan to increase Apple’s presence in Asia, which includes a project to build a solar factory in China and a planned solar factory at the International Space Station.