SunPower, a leading U.S. rooftop solar company, announced on Monday that it has filed for Chapter 11 bankruptcy in Delaware.
The company cited a series of challenges, including changes to California’s rooftop solar subsidy programs, high interest rates, and internal struggles, as contributing factors to its financial distress.
As part of the bankruptcy process, SunPower plans to sell some of its assets to Complete Solaria, while the company and its remaining subsidiaries will undergo restructuring.
Read: Biden Restores Solar Tariffs After Chinese Companies Clobbered American Firms For Years
SunPower’s Executive Chairman, Tom Werner, expressed hope that the proposed transaction would allow key parts of the business to continue operating under new ownership.
The company has faced significant headwinds in recent years, particularly due to changes in California’s solar incentives that reduced payments to homeowners for excess power generated by rooftop panels. This, coupled with other financial pressures, ultimately led to SunPower’s bankruptcy filing.
Prior to the bankruptcy, SunPower had shown signs of trouble, including a default on a credit deal, restated earnings, and a leadership change. The company halted new solar shipments and installations in 2024 as part of its restructuring efforts.
Read: Biden Hands Out Hundreds Of Millions To Subsidize Solar In Some Of America’s Least-Sunny Places
SunPower’s bankruptcy represents a significant development in the solar industry, highlighting the challenges faced by companies navigating shifting regulatory landscapes and economic pressures.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Android Users: Download our free app to stay up-to-date on the latest news.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.