A solar installer and contributor to microgrid development in the U.S. has declared Chapter 11 bankruptcy, and some sector experts partially blame California's state net metering policies, which are seen to favor utilities.
SunPower filed a petition seeking Chapter 11 reorganization and bankruptcy protection earlier this month. The company also cut a deal with Complete Solaria to sell certain assets such as the Blue Raven Solar and New Homes businesses to the latter as a stalking horse buyer.
In bankruptcy lexicon, a stalking horse buyer is an entity which bids for assets of a bankrupt firm in advance of an auction of those assets.
"For nearly 40 years, SunPower has made solar energy more accessible to Americans, driven by our mission to change the way our world is powered. We are confident that Complete Solaria's CEO, T.J. Rodgers, will carry forward our vision to shape the future of residential solar as a pioneer in this space," said Tom Werner, Executive Chairman at SunPower, in a company statement.
"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," Werner added.
SunPower has been a major player within the microgrid sector for years. Recently, the company was project leader on a “Connected Communities” initiative involving residential microgrids. The Connected Communities partners include Schneider Electric, utility Southern California Edison and the energy research group at the University of California-Irvine.
No update was available on the status of that project at the time of this story posting. SunPower previously led microgrid ready projects for Alabama military installations and elsewhere around California and the nation.
The statewide regulatory policy known as NEM 3 (for net energy metering), which reduced net metering rates for distributed energy resources, has hurt multiple companies in the clean energy sector, according to a statement by the California Solar and Storage Association.
“Dozens of companies have gone bankrupt or left California since the start of the ‘net billing tariff’, also known as NEM 3, in April 2023,” the association’s statement reads. “It took California 13 years to build its first million solar roofs, five years to build its second million, and one year to cut solar installations to a 10-year low.”
Other analysts, including those who talked to global business media, said the SunPower bankruptcy is not indicative of dangers to the whole clean energy space, but rather specific to that company's fiscal challenges and the policy changes which impacted it.
More on Net Metering and Microgrids
In its bankruptcy filing, SunPower listed assets and liabilities of $1 billion and $10 billion, respectively. Complete Solaria is paying close to $45 million for the assets acquired in the stalking horse buyer transaction.
Track Solar Energy Developments by Subscribing to our free MGK Newsletter
