SunPower is bankrupt. What now?

The sun has been slowly setting on SunPower for months now. Breached credit agreements, trouble with Nasdaq, leadership changes, and massive layoffs signaled SunPower’s descent into bankruptcy long before it officially filed on August 5. 

SunPower was a beacon of solar innovation and success for much of its nearly 40-year tenure. Its rapid unwinding has unnerved many in the industry, especially customers, who wonder if this is a cautionary business tale or a harbinger for the industry itself. 

Whether you’re an existing SunPower customer or a concerned solar customer, we’re here to help you understand what’s happening and what this means for customers (and the industry) moving forward.

SunPower, which started as a pioneering manufacturer of high-performance solar panels and grew into one of the nation’s top solar companies, filed for Chapter 11 bankruptcy protection on August 5. 

The company weathered the ebb and flow of an emerging industry, ever-changing state and national policies, multiple recessions, a public IPO, an international acquisition, and a high-profile spin-off of its manufacturing arm, but ultimately crashed into the rocks in 2024. 

EnergySage’s Erik Holvik provided some insight into SunPower’s decline. 

“SunPower was trying to do everything, from manufacturing to sales to installations to lease and service agreements,” he said. “It worked when demand was at an all-time high and doubling year over year, but timing matters, as does having a robust strategy capable of withstanding the highs and lows in the marketplace.”

The full story of SunPower’s demise has yet to be told, but what is known paints a picture of a company that struggled with its internal finances. Despite being one of the nation’s largest solar companies, SunPower lost $200 million in 2023 as its operating expenses doubled. Rising interest rates and a major policy change in the country’s largest rooftop solar market helped soften demand in 2024. However, SunPower also acknowledged accounting errors in its financial statements, to the point where Ernst & Young walked away in June as the company’s auditing firm. And on August 16, Nasdaq delisted the company from its stock exchange for failing to comply with listing rules and file periodic financial reports.

Upon filing for bankruptcy on August 5, the company announced it had entered into what’s known as a  “Stalking Horse agreement” with Complete Solaria. Under the deal, Complete Solaria will buy SunPower’s Blue Raven Solar business, New Homes business, and a portion of its dealer network for $45 million (under the terms of a stalking horse agreement, another buyer could still come in and make a higher offer). The rest of the company’s assets could be sold elsewhere or simply wound down. Either way, SunPower is looking to move quickly; a bankruptcy judge is scheduled to hear the case in September. 

“Ultimately, the acquisition of SunPower’s assets means most homeowners won’t be impacted, and installers will continue to put solar on roofs. While it’s always sad to see a company fail, especially one with such a long history in the industry, it's also exciting to see who will step up and continue to shape and move this industry forward,” Holvik said.

The dust is still settling from SunPower’s collapse, and it’s still not clear how bankruptcy proceedings will impact the company’s ability to serve its remaining customers. However, SunPower isn’t the first solar company to go bankrupt, so there is precedent we can study. 

In the meantime, here are some steps you can take if you find yourself with an “orphaned” solar energy system. 

Review all your contracts and warranties

Understanding the fine print in your paperwork may answer some of your questions right off the bat, but more importantly, it will empower you during this transition. Another company will likely assume responsibility for your warranty, contract, and financing agreements, so it’s best to know what you’re entitled to. 

Reach out to your installer

Your SunPower installer will have the most insight into your specific situation. Ask them about your warranty and how they’re moving forward with SunPower customers. 

Contact your equipment manufacturer

SunPower's bankruptcy shouldn’t impact your manufacturers’ warranties. But, it’s still worth confirming this with the manufacturer. Take note of your equipment brands when reviewing your SunPower documents.

As we mentioned, your product and performance warranties should remain covered by the panel manufacturer. However, any service or maintenance promises made by SunPower may be lost in this transition. 

There are still a lot of unknowns as this bankruptcy proceeds, including to what extent Complete Solaria – or any other company that buys SunPowers’ assets – will be held responsible for existing service and maintenance warranties.

If you have a solar lease or power purchase agreement (PPA) with SunPower: Unfortunately, you’ll have to sit tight until SunPower squares away its assets. You don’t technically own the equipment and, therefore, can’t maintain it on your own.

If you own your SunPower system: You can contact other companies to provide needed servicing.

SunPower’s decline is surprising, considering its decades of success. In the end, the company’s internal issues, coupled with ebbing demand due to policy changes and high interest rates, led to its decline. However, despite recent growing pains, solar remains the fastest-growing source of electricity in the U.S.

EnergySage partners with hundreds of installers across the country and has witnessed this industry’s resilience first-hand. While there’s no crystal ball to predict which companies will succeed, the industry's focus on diversified offerings and customer education is promising. High-profile setbacks like SunPower’s are disappointing, but for customers, now is still an excellent time to enter the market.