SunPower Solar, one of CNET’s best national solar companies, will immediately stop leasing solar energy and entering into power purchase agreements, the company announced this week.
Reuters reported the change came after letters SunPower sent to dealers on Wednesday came to light investment notes (PDF) to reduce the company’s shares.
The news comes during a tough year for SunPower. In February, the company was subpoenaed by the U.S. Securities and Exchange Commission for information about allegations of financial misconduct by senior executives. SunPower’s CEO resigned that month. The auditor, Ernst & Young, resigned in June.
Company eliminate other industriesincluding direct sales, in April, when it also laid off about 1,000 workers.
CNET’s review of SunPower praises the company’s solar equipment. The company’s Maxeon panels (made by a company that spun off from SunPower in 2020) are among the most efficient solar panels on the market, and SunPower has backed these quality products with strong warranties. We’ve criticized SunPower for the affordability of its products and services. By ending solar leases and power purchase agreements, these cheaper financing options are disappearing from the range of SunPower customers.
It is not yet clear what will happen to existing solar leases and PPAs, or to new leases and power purchase agreements that have not yet been concluded.
CNET has reached out to SunPower for comment.
SunPower is the longest-running national solar company in the U.S., founded in 1985. The company is one of the few solar installers operating in all 50 states.
While the U.S. saw record numbers of residential solar installations in 2023, market changes have led to a decline in the number of new solar roofs so far in 2024. California’s NEM 3.0 policy has been particularly disastrous, hurting solar growth in one of the state’s largest markets.
Energy consultancy Wood Mackenzie expects the residential solar market to grow. shrink by 14% this yearwith California’s changes taking the biggest brunt.
While some solar companies are struggling in the current market conditions, this may be one of the best times for U.S. residents to go solar. The Inflation Reduction Act expanded the residential clean energy tax credit, allowing homeowners who install a solar panel system to recoup 30% of the cost come tax season.
To learn more about how these financing options can impact your decision to go solar, check out CNET’s articles on solar lease agreements and power purchase agreements.
