SunPower Bankruptcy and Current State

SunPower Corporation, a leading solar energy company, filed for Chapter 11 bankruptcy protection in August 2024. This marked a significant turning point for customers who had purchased or leased SunPower’s solar energy systems.

Bankruptcy Timeline

  • Apr 24, 2024: SunPower announced its plan to lay off approximately 1,000 employees, coinciding with its decision to wind down direct residential installations and close its SunPower Direct sales arm. This was the first sign that SunPower was in trouble.

  • Aug 5, 2024: SunPower Corporation filed for Chapter 11 bankruptcy protection. The cause is related to the sharp rise in interest rates post-COVID, raised installation costs and the adoption of NEM 3.0 in California. California is, by far, the largest market for SunPower, with around 3 million installed or abandoned (post-bankruptcy) systems. The bankruptcy was filed in Delaware, and the court is the US Bankruptcy Court for the District of Delaware.

  • Sep 30, 2024: Complete Solaria acquired the following SunPower assets:

    • Blue Raven Solar division (SunPower’s residential solar installation and financing arm)

    • New Homes division (pre-wired solar solutions for home builders)

    • Non-Installing Dealer network (third-party dealer channel)

    • “SunPower” brand and related trademarks & intellectual property. Complete Solaria is now the owner of the SunPower brand, and has renamed itself to SunPower.

  • Sep 30, 2024: HA SunStrong Capital LLC (aka SunStrong Management) acquired the following assets from SunPower:

    • SunPower mezzanine loans (internal to the company and used for short-term financing, not related to customers)

    • The IL Incentive Revenue Account (IL) – this is the account that SunPower used to pay for the incentives for the systems they sold. It is not related to customers.

    • Purchased intellectual property

    • Purchased PPAs and leases. A PPA is a power purchase agreement, a long-term contract between a power generator (here, former SunPower or its affiliates) and a buyer (often a utility, large commercial customer, or other offtaker). This is what allow US to generate power and sell it to the various grids we’re connected to. It is not directly related to customers.

    • All executory contracts and unexpired leases listed schedule‐wise (“Assigned Contracts”)

    • All accounts receivable related solely to these assets

    • Related books and records

    • System‐management software (InfoLease, Lien Machine, Microsoft Dynamics).

Who was involved in the SunPower bankruptcy?

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are:

  • SunPower Corporation (8969);

  • SunPower Corporation, Systems (8962);

  • SunPower Capital, LLC (8450);

  • SunPower Capital Services, LLC (9910);

  • SunPower HoldCo, LLC (0454);

  • SunPower North America, LLC (0194);

  • Blue Raven Solar, LLC (3692);

  • Blue Raven Solar Holdings, LLC (4577);

  • BRS Field Ops, LLC (2370);

  • and Falcon Acquisition HoldCo, Inc. (3335).

Summary

  • Complete Solaria (now renamed to SunPower) acquired the part of old SunPower only related to new installations. New customers that want solar systems go to SunPower (Complete Solaria).

  • SunStrong Management acquired only the existing leased systems, the iOS/Android monitoring application and the infrastructure that supports it, along with a lot of internal financial data and assets. SunStrong management handles servicing of leased systems.

For us folk who bought with cash or loan, the critical part of the SunPower asset sales to SunStrong Management – the SunStrong iOS/Android application, the infrastructure that supports it, and maintaining the firmware for the PVS6 – are covered under “Purchased intellectual property” and “System‐management software” in the above list. The rest of the assets are not critical to us as customers.

References