SunPower files for bankruptcy: A once shining star in the solar sky fades

SunPower, once an icon of the American solar industry, has filed for bankruptcy in Delaware. This news is likely to send shockwaves through the solar sector. According to a court document, the company reports assets and liabilities in the range of one to ten billion US dollars in its bankruptcy proceedings. The challenges faced by SunPower are not isolated within the industry. High interest rates and changes in subsidies in California, the largest solar energy market in the U.S., have dampened expectations for many solar companies. Hopes for substantial growth through President Joe Biden's 2022 climate protection law have thus been dashed. Additionally, SunPower struggled with its own issues, including failure to comply with credit agreements in 2023 and restating business results. This year, the company replaced its CEO, reorganized its operations, and lost its accountant. SunPower long enjoyed a reputation for producing some of the best solar panels in the industry, but in 2020 decided to spin off its manufacturing division and focus on the growing demand for residential and commercial rooftop installations. However, this approach quickly failed as inflation and high interest rates drove up consumer costs. Meanwhile, the company’s own operational difficulties hindered growth. On July 17, SunPower informed its dealers that new installations and deliveries were halted. Analysts interpreted this move as a sign of the end of the company's business activities, suspending their coverage or lowering their target prices to zero.