Solar Installer Insights: SunPower’s Chapter 11 Bankruptcy

In a significant development within the solar industry, SunPower has filed for Chapter 11 bankruptcy protection in the United States, announcing plans to sell parts of its business to Complete Solaria for $45 million in cash. This news caused SunPower’s shares to plummet by about 45% to 44 cents premarket on Tuesday. The company’s assets and liabilities were listed in the range of $1 billion to $10 billion, according to a filing with the bankruptcy court in Delaware.

Despite this being a Chapter 11 (restructuring) rather than Chapter 7 (liquidation), analysts like Raymond James’ Pavel Molchanov suggest it effectively signifies the liquidation of SunPower. Molchanov expects the asset sale process to conclude by late 2024, marking the end of SunPower, a company founded in 1985.

SunPower has faced a series of challenges recently, including the departure of its CEO in February and a subpoena from the U.S. securities regulator related to its accounting practices. The situation worsened last month when SunPower paused several operations, including new product shipments and deactivated lease and purchase deals on its platform.

SunPower plans to continue selling its remaining assets after entering a ‘stalking horse’ agreement with California-based Complete Solaria. This deal includes selling its Blue Raven Solar and New Homes businesses, and its non-installing Dealer network. A stalking horse bid sets a baseline offer that other interested parties must exceed to acquire the assets.

It’s noteworthy that SunPower acquired Blue Raven for $165 million in 2021.

Why Centauri Systems Never Recommended SunPower

At Centauri Systems, we prioritize sustainable and reliable choices for our customers. We have never partnered with SunPower, even during their peak, because they were never an actual manufacturer but a reseller. We believe in recommending solutions that offer long-term sustainability and reliability, and resellers do not align with this vision. Our commitment is to provide our customers with the best and most dependable solar solutions, ensuring a brighter and more sustainable future.

Enhanced Protection with SolarInsure Warranty

Centauri Systems goes beyond the typical industry standards by including the added protection of SolarInsure to every project we install, free of charge. This means homeowners are covered under a comprehensive 30-year warranty. This type of warranty extends beyond manufacturer and installer guarantees, safeguarding your solar investment against market fluctuations like today’s SunPower situation. SolarInsure ensures that your installation is protected, even if Centauri Systems or the equipment manufacturer is no longer around to fulfill the warranty claim. This unparalleled security offers peace of mind and solidifies our commitment to providing the most reliable solar solutions.