Major solar panel company files for BANKRUPTCY after California ends subsidies for renewables

08/13/2024 / By Ramon Tomey

A major provider of solar panels for rooftops has filed for bankruptcy, dealing another serious blow to the much-hyped “green” energy sector.

Watts Up With That (WUWT) reported, citing the Daily Caller, that rooftop solar firm SunPower filed for Chapter 11 bankruptcy in Delaware on Aug. 5. The San Jose, California-based SunPower will look to sell some of its assets to Fremont, California-based rival Complete Solaria while the company itself alongside some of its subsidiaries file for bankruptcy, according to an Aug. 5 statement.

SunPower divulged in court filings that it is carrying about $2 billion in long-term debt. It also noted that it has been struggling since October to avoid potential defaults under various financing arrangements. The solar panel company asked the court to approve the Complete Solaria deal by the end of September, according to Bloomberg News.

Founded in 1985, SunPower was among the leading solar companies in the U.S. before its bankruptcy filing. However, it had already shown signs of distress before being in the red. On July 17, the company told dealers it was halting new installations and shipments – a move that culminated with the Aug. 5 bankruptcy filing.

“Over the course of less than two years, the once-darling of the industry was forced to fire workers to cut costs, restate earnings and default on a credit agreement,” Bloomberg News reported. “In 2024, the firm replaced its CEO, restructured its operations and lost its accountant.”

“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,” SunPower Executive Chairman Tom Werner said of the company’s bankruptcy filing and sale of assets to Complete Solaria. (Related: Feds raid Obama-touted solar panel company, 900 American workers lose jobs after company files bankruptcy.)

“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.”

Change in CA subsidy laws seriously impacted SunPower

“Industry headwinds added to the woes,” Bloomberg News continued. “High interest rates and subsidy changes in California – the U.S. sector’s biggest market – have been a drag for solar firms that expected big growth from President Joe Biden’s signature climate law of 2022.”

WUWT expounded on the subsidy changes, citing a piece by CalMatters from last November. According to the California news outlet, the California Public Utilities Commission (CPUC) changed the state’s subsidy programs for rooftop solar. It also weakened the incentive for companies such as SunPower to promote solar panels by reducing payments to homeowners who sell back the excess power the panels generated.

Solar advocates told CalMatters that customers affected by the changes would be paid about 80 percent less per unit of energy they sell. These rates vary depending on the season and time of day.

“This [new rule] forces them to sell low and buy high. No one is going to go solar under that setup,” said California Solar & Storage Association (CALSSA) Executive Director Bernadette Del Chiaro. CALSSA led the campaign against the overhaul of subsidies for solar power, according to CalMatters.

The CPUC defended its decision to overhaul the subsidy programs, arguing that paying near-retail energy prices to owners of solar panels allows these mostly wealthy property owners to avoid paying a fair share of maintaining the grid. Ultimately, Bloomberg News pointed out that the commission’s move negatively impacted SunPower’s business – culminating in its bankruptcy filing.

But the truth is that solar power isn’t exactly reliable on days when the sun isn’t out. The amount of energy it generates isn’t sufficient to meet demand, something fossil fuels such as coal excel at.

Solar power isn’t exactly a “green technology” either as dangerous chemicals are used in the manufacture of solar panels. These same chemicals in solar panels harm the environment once they are discarded.

Watch this report from “Jesse Watters Primetime” on Fox News about the solar panel company Sunnova receiving subsidies from the Biden administration.

This video is from the GalacticStorm channel on Brighteon.com.