SunPower hit by US$31 million cracking issue, warns of further drags on Q4 results

Facebook
Twitter
LinkedIn
Reddit
Email
SunPower said it expected charges of around US$31 million to be realised as a result of the cracking issue. Image: SunPower.

US solar installer SunPower is to be hit by a cracking issue discovered in connectors associated with equipment installed in some commercial and industrial (C&I) projects, resulting in charges of around US$31 million.

And SunPower has too warned that its Q4 performance will be below the midpoint of its previously-stated guidance after poor weather in California was blamed for installations being pushed back into 2022.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

In a statement issued late yesterday (20 January 2021), SunPower revealed that it had identified a cracking issue associated with factory-installed connectors within some third-party commercial equipment used in commercial and industrial and light commercial value-added reseller products.

The installer said it was now working to replace these connectors – which it expected to largely complete this year – at a cost to the business of around US$31 million. A charge of around US$27 million is to be recorded in the firm’s Q4 2021 results, followed by an additional charge of around US$4 million recorded in Q1 2022 as it pursues suppliers for compensation.

All charges are to be funded by company cash reserves, SunPower said, while also reiterating that residential products were not impacted.

Meanwhile, SunPower also guided that its Q4 earnings will be towards the lower end of its guidance of US$41 – 18 million. The company said numerous factors had sent Q4 earnings below the midpoint of that range, including poor weather in California and lingering COVID impacts which had shifted around US$6.5 million of earnings into 2022 and an investment of US$3 million in sales and marketing to support the company’s residential expansion.

In preliminary results for the quarter, SunPower confirmed it had recognized 113MW of residential installations in the final quarter of 2021, supported by residential lead generation “hitting new high”.

SunPower also confirmed that it now expected to finalise the sale of its CIS unit “within weeks”.

25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.

Read Next

July 14, 2025
Elements Green has secured €80 million (US$93.5 million) in financing from Danish investment firm Copenhagen Infrastructure Partners (CIP).
July 14, 2025
OpenSolar has launched a new model to help US rooftop solar installers reduce costs and thrive despite the loss of the 30% IRA tax credit.
July 9, 2025
Indian solar water pump and motor manufacturer Shakti Pumps has successfully raised INR2.9 billion (US$34.1 million) to build a solar cell and module manufacturing plant.
July 7, 2025
In Europe, PV panel prices fell marginally between May and June, leading to a slight downturn in European module buyers’ market confidence.
July 4, 2025
Chinese PV provider Skycorp Solar Group has announced a solar plant acquisition and development strategy following unanimous board approval.
Premium
July 3, 2025
Meeting the UK’s solar targets will not simply require the installation of new capacity, but investment in grid infrastructure and training.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK