US residential solar provider SunPower has stopped several operations including new shipments and financing options, according to an analyst note.
Investment bank Roth Capital published a letter from SunPower obtained from industry contacts. In the letter, SunPower said: “Beginning today, 17 July 2024, SunPower will no longer be supporting new Lease and PPA (power purchase agreement) sales nor new project installations of these financing options.
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“As a result, we will deactivate Lease and PPA offerings from EDDiE (SunPower’s sales and design platform), cease countersigning new agreements, and all active unsigned proposals will expire. Additionally, all new shipments and project installations will be halted.”
SunPower said the decision was not made “lightly”. Looking ahead, the company will continue to consider options to support its mutual customers and its collective pipeline of business, while it will also “explore alternative providers to help transfer sold projects and expect more details from SunPower as soon as possible”.
After the announcement, SunPower’s stock price plunged by more than 40%, dropping to US$1.51 per share.
SunPower’s predicament could benefit other solar installers. In the same analyst note, Roth Capital said SunPower’s announcement was a “positive readthrough” for Sunnova and Sunrun, as they can have “an even greater opportunity to pick up new, high-quality installers or dealers”.
However, Enphase Energy’s business may be impacted by the news, as it historically had about 5-7% of its revenue tied to SunPower.
“Our sense is that most of the dealers likely either had already or will pivot to other financing options,” Roth Capital said.
PV Tech has approached SunPower for comments.
Prior to this announcement, SunPower announced in its financial statement for 2023 that it would reduce its workforce and close business segments in April, hoping to simplify its business structure and lower costs. In a note to staff, which was shared on the company’s website, SunPower’s principal executive officer Tom Werner said about 1,000 jobs would be cut following the announcement.
The divisions SunPower Residential Installation (SPRI) locations and SunPower Direct sales would be closed too.
SunPower’s principal executive officer Tom Werner said the market recovery had been slower than the company initially expected. Therefore, SunPower was “moving to a low fixed-cost model” that will enable the company to “better flex when the market is up or down”.
In the same financial statement, the company posted a lowered customer growth for four quarters in a row and a net loss of US$247 million for FY2023.
Then CEO Peter Faricy departed the company days after SunPower’s announcement of securing over US$300 million funding for solar PV and storage lease programmes.
In March, PV Tech Premium published an article to examine SunPower’s shift to the residential solar sector.
Prior to these events, SunPower announced that it had breached a credit agreement in December 2023, sparking concerns over its ability to stay in business. SunPower also announced that it had identified misstatements in financial results for the fiscal year 2022.
