SunPower has officially announced bankruptcy, filing for protection under Chapter 11
Its Blue Raven Solar Business, New Homes business and some of the other assets have secured Complete Solaria as the Stalking Horse Buyer
Remaining assets will be open to bids from other interested bidders, according to the management
Once a formidable name in the global solar PV industry, SunPower Corporation of the US has now declared bankruptcy and filed for relief under Chapter 11 of the US Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware. Its assets will now be open to competing bids from interested parties.
Meanwhile, it has signed an asset purchase agreement (APA) with residential installer and financier Complete Solaria, which will purchase some assets related to SunPower’s Blue Raven Solar Business, New Homes Business, and non-installing Dealer Network, as the Stalking Horse Buyer.
A Stalking Horse is a bidder that places the initial bid on a bankrupt company and its assets. Its bid can be surpassed by other interested bidders.
With French energy giant TotalEnergies as its majority owner, SunPower is one of the big names at the receiving end of the high-interest rate environment in the US solar sector. Its problems, however, started with the US’ largest residential solar market of California transitioning to Net Energy Metering 3.0 (NEM 3.0) regime.
The management has in the past blamed both of these factors as having significantly pulled down market demand. SunPower announced cost-cutting measures in 2023.
In July 2024, SunPower was reported to have halted some of its operations and deactivated its lease and power purchase agreements (PPA). Renova Energy, SunPower’s minority-owned solar dealer, was also forced to stop its operations temporarily citing the default condition of SunPower (see SunPower Going Down, Taking Renova Energy & Parts Of US Markets With It).
Now under bankruptcy proceedings, the $45 million cash deal will see CEO T.J. Rodgers led-Complete Solaria also assuming certain liabilities related to the assets. Created with the merger between Complete Solar and Solaria, Complete Solaria is a leading residential installer and financier in the US market.
“For nearly 40 years, SunPower has made solar energy more accessible to Americans, driven by our mission to change the way our world is powered,” said SunPower’s Executive Chairman Tom Werner. “In light of the challenges SunPower has faced, the proposed transaction offers a significant opportunity for key parts of our business to continue our legacy under new ownership. We are working to secure long-term solutions for the remaining areas of our business, while maintaining our focus on supporting our valued employees, customers, dealers, builders, and partners."
The transaction needs the court’s approval to complete the transaction mid-to-late September 2024. SunPower has requested the court to access necessary prepetition cash collateral to fund its business operations and administrative expenses, and also seeking authorization to meet its obligations to its employees.
“Following an expeditious sale process, the Company plans to liquidate any remaining assets and undergo an orderly and efficient winddown of its operations,” stated SunPower.
In August 2020, SunPower completed the spin-off of its solar PV manufacturing business under Maxeon Solar Technologies to focus on the solar installation business.
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