SunPower files for bankruptcy | OilPrice.com

SunPower, the California-based solar developer and operator, filed for bankruptcy protection after cutting jobs and saying it would restate its financial results for the past two years due to incorrect cost classification.

The company also said it had reached an agreement with Complete Solaria, which would buy part of SunPower’s business for $45 million in cash. Solaria would buy the Blue Raven Solar project and SunPower’s new home business. According to Reuters, when SunPower acquired Blue Raven Solar, it paid $165 million in 2021.

The bankruptcy filing estimated the company’s assets and liabilities at between $1 billion and $10 billion, Reuters reported.

Earlier this year, SunPower, whose shares fell as much as 60% in the past 12 months through April, announced it would cut 1,000 jobs and overhaul its financial reporting. According to Bloomberg, the overhaul would reduce the company’s profits by between $25 million and $25 million.

In July, media reported that SunPower would suspend new solar installations and halt shipments, causing its shares to drop nearly 40% in afternoon trading on July 18.

The solar company has informed distributors that it will not support new leases, power purchase agreement (PPA) sales or new project installations as of Sept. 17. The decision, outlined in a letter included in a Roth MKM research note, became the latest sign of serious operational problems for the solar developer.

French energy giant TotalEnergies SE, which owns about 65% of SunPower, is now facing the fallout from these developments.

A weakening rooftop solar market in California was a major reason for SunPower’s troubles, as inventories built up amid declining demand. Regulatory reforms in the state contributed to the lower demand, as they removed much of the incentive that drove people to install solar on their rooftops.

By Irina Slav for Oilprice.com

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