SunPower files for Chapter 11 bankruptcy [update]

Solar developer SunPower filed for Chapter 11 bankruptcy protection in the US, but here’s some good news for its customers.

Solar panel manufacturer Maxeon, a spin-off from SunPower, has announced it will provide warranty support in the US for SunPower-branded solar panels that it’s manufactured.

Maxeon had a supply agreement to provide solar panels to SunPower but it was terminated in 2023. Maxeon stopped shipping solar panels to SunPower in Q1 2024.

So if you have a SunPower solar system on your home, go to Maxeon’s website here to register your system using an online form by December 31, 2024. Maxeon products typically have a 40-year warranty.

August 6, 2024: In its bankruptcy filing with the Delaware court late Monday, SunPower reported its assets and liabilities to be between $1 billion and $10 billion.

Despite filing for Chapter 11, which typically allows a company to restructure rather than liquidate, SunPower’s situation looks like a liquidation. In July, the company paused several key operations, including new product shipments and leasing and purchasing agreements. This pause signaled growing difficulties within the company.

SunPower plans to sell its remaining assets and has entered into a “stalking horse” agreement with Complete Solaria. This agreement involves selling its Blue Raven Solar and New Homes businesses, along with its non-installing Dealer network, for $45 million in cash. The term “stalking horse” refers to an initial bid on a bankrupt company’s assets, setting a minimum price that other bidders have to exceed.

Tom Werner, executive chairman at SunPower, said, “In light of the challenges SunPower has faced, the proposed transaction offers a significant opportunity for key parts of our business to continue our legacy under new ownership. We are working to secure long-term solutions for the remaining areas of our business, while maintaining our focus on supporting our valued employees, customers, dealers, builders, and partners.”

The company has faced big challenges over the past few quarters, beginning with its CEO’s departure in February. Around the same time, SunPower was issued a subpoena by the US securities regulator concerning its accounting practices. The acquisition of Blue Raven for $165 million in 2021 now seems like a distant memory as the company navigates its current financial woes.

The sale of SunPower’s assets is expected to be completed by late 2024, marking the end of a company that was founded in 1985. As the solar industry continues to evolve, the collapse of a major player like SunPower serves as a reminder of the volatility and competitive pressures in the renewable energy market.

Read more: SunPower ceases residential installations, lays off 1,000

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