SunPower, a widely known solar provider company, is going out of business. SunPower provided residential solar panel systems for 2 decades but is now facing bankruptcy and is preparing to sell it’s assets as it closes up shop. What does this mean for SunPower customers who have bought warranted solar panel systems or, even more tricky, are leasing solar from SunPower? We hope to answer your questions here.
Considering that the trouble started as recently as 2023, SunPower’s downfall is a reminder that bigger companies aren’t always a safer choice for consumers.
Sunpower’s Rise and Fall
SunPower has been a major player in residential and commercial solar markets for nearly two decades. It has grown into a well-known figure in the solar industry, but their fall was surprisingly rapid.
Despite its long-standing success, the financial trouble that took them down happened in less than two years. In 2023, interest rates spiked and caused a temporary dip in residential solar demand. This was paired with falling solar panel prices, intense competition in the industry, and challenges adapting to rapidly changing market conditions, as can happen to large older companies.
SunPower took out massive business loans meant to be “bridge financing” to tide them over. However, certain mistakes in financial filings and missed deadlines resulted in refusal for further financing which left them in a “severe liquidity crisis”.
Sunpower recently announced bankruptcy and will be selling assets to the highest bidders. Its stock will soon be delisted from NASDAQ and moved to the pink sheets.
What Does It Mean For Consumers?
What should existing SunPower customers expect now that the solar provider is going out of business? Naturally, there are some serious concerns. You may be faced with the possibility of losing some or all of your warranty. You may be worried about where to find service for system maintenance, repairs, and support.
The Risks of Turning to Big Companies for Solar Energy
Unfortunately, choosing a big solar company isn’t always the right answer. It’s not like getting fast food from a trusted brand name. SunPower crashed fast, which means size doesn’t guarantee stability in the solar sector. Larger companies often scale too rapidly, and find themselves unable to stay afloat as a result. It is also possible for quality to slip when a company scales without oversight.
Smaller companies are able to respond more effectively to changes in the solar market, including new trends and technology. Smaller solar providers are also less likely to run into major financial challenges for two reasons: Scaling responsibly and not having to strategize with stakeholders in mind. This allows small solar providers to put customers first.
What You Should Do Now
Fortunately, now is not yet the time to panic. First, manufacturer warranties are likely still in place. If you contracted with a SunPanel dealer, the local team may have provided you with their own warranty coverage on work quality or maintenance services. It is also likely that whoever purchases SunPower residential divisions will take on warranty responsibility.
Those who bought SunPower systems can seek third party providers for repairs and maintenance, but those leasing will need to wait until the deals are done.
Research multiple options before committing to a solar provider Be sure to consider multiple factors, like local presence and customer reviews, as well as post-installation support and warranties. Understanding warranty terms and contingency plans can secure your long-term solar panel maintenance.
Find a Solar Energy Company You Can Trust
Finding the right solar energy company is not always just choosing a big name. In fact, small local providers are often more stable and may even offer more comprehensive and considerate package deals than large-scale solar providers. It’s important to partner with a solar energy company that you trust.
Contact us today to get a custom solar panel system that meets your home’s unique energy needs.
