US Firm SunPower Files for Bankruptcy Amidst Financial Struggles

US based residential solar technology and energy services provider SunPower has announced its decision to file for bankruptcy. This move marks a significant downturn for a company known for its innovation.

As per reports, SunPower has struggled recently due to high US interest rates and reduced consumer demand, exacerbated by inflation. This financial strain has been compounded by difficulties in leveraging funds from the Inflation Reduction Act. Earlier this year, SunPower disclosed that it needed to repay some lenders early due to inaccuracies in its 2023 earnings reports.

SunPower is selling its assets, including the installation company Blue Raven Solar and its new homes unit, to Complete Solaria, as it says in its press statement, "Complete Solaria is set to acquire SunPower’s assets and assume certain related liabilities for USD 45 million in cash. The company has requested court approval to finalise this transaction by mid-to-late September. Additionally, SunPower plans to continue selling its remaining assets under Section 363 of the U.S. Bankruptcy Code."

Tom Werner, Executive Chairman of SunPower, remarked, “For nearly 40 years, SunPower has worked to make solar energy more accessible to Americans, driven by our mission to transform global energy. We are confident that Complete Solaria’s CEO, T.J. Rodgers, will continue our vision to lead the residential solar sector. Despite the challenges SunPower has faced, this transaction presents a significant opportunity for key parts of our business to persist under new ownership. We are focused on securing long-term solutions for the remaining areas of our business while supporting our valued employees, customers, dealers, builders, and partners.”

T.J. Rodgers, CEO of Complete Solaria, noted, “The cost of solar energy utility generation is now 2.4 cents per kilowatt hour (kWh) compared to 3.6 cents per kWh for coal, the least expensive fossil fuel source. This shift towards zero-emission solar energy is accelerating, with distributed solar power allowing homeowners to generate electricity for 8-10 cents per kWh, lower than utility rates in most states. We plan to integrate Blue Raven Solar, SunPower’s New Homes Division, and part of SunPower’s dealer network into Complete Solaria. This acquisition will enhance our market position and reinforce our commitment to advancing clean, reliable energy.”