US Residential Solar Market In Turmoil As Leading Solar Installers Scale Back Operations. Industry Experts Caution More To Follow
Key Takeaways
- SunPower Corporation is reportedly halting some of its operations along with new product shipments
- It will also not be able to support installations for shipments in transit or already delivered
- Renova Energy, in which SunPower has a minority stake, has also stopped its operations temporarily
One of the largest residential solar energy companies in the US, SunPower Corporation is reportedly halting some of its operations and ‘deactivating’ its lease and power purchase agreements (PPA). Following this news, Renova Energy—in which SunPower is a partial investor—has announced shutting down its operations temporarily.
According to a recent news report by Reuters, SunPower has written to its clients announcing the decision to not sign any new agreements from its sales platform. It plans to halt new product shipments and not be able to support installation services for shipments already in transit or delivered.
The management assures its clients that the company is addressing its financial position and is working to navigate its current challenges.
SunPower’s problems started in 2023 when it blamed macroeconomic uncertainty and higher interest rates in the market for weakening demand in the residential segment. Back then, it announced cost-cutting measures (see SunPower’s Business Suffers With Dip In Demand).
According to a Bloomberg report, Joseph Osha in a research note said SunPower is entering a wind-down process, which will likely end in the sale of its remaining assets and the delisting of its equity. He called it a ‘sad end for an industry pioneer.’
Roth MKM’s Philip Shen called it a ‘meaningful, incremental negative’ for the company that likely ‘adversely impacts market sentiment’. He believes this is going to impact several SunPower dealers who are now pivoting to other lease providers. SunPower’s New Homes Business may also be up for sale.
A SunPower dealer in which the company also holds minority interest, Renova Energy has also called it quits. A leading solar installer in California and Arizona, Renova has shut down its operations temporarily, translating into loss of jobs for hundreds of workers, according to local media outlets.
SunPower made a minority investment in Renova and EmPower Solar in 2022, adding them to its Dealer Accelerator Program. Under this program, the dealers exclusively sell SunPower solar systems.
In a letter written by Renova’s CEO and Founder Vincent J. Battaglia to its customers, as circulating in the media, he blamed the current default condition of its partial investor SunPower for being forced to temporarily stop its operations, including for roofing, installations and service organizations.
Source from Taiyang News
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