A Big Solar Company May Be Collapsing

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SunPower, of the nation's biggest solar installers, is no longer selling leases.

ne of the largest residential solar installers in the U.S. appears to be on the cusp of failing, the latest sign of the troubled industry’s struggles., said on July 17 that it would no longer be supporting new leases or power purchase agreements, which means it is essentially not acquiring any new customers. The company also said in a letter to dealers who sell its systems that it could not support installation of panels that had been delivered but not yet installed.

The company’s announcement follows months of turmoil. Last December, SunPower said it might not be able to continue as a going concern because it breached a key term in a credit agreement. The company then said in February that it needed additional time to complete its quarterly financial statement; the Nasdaqit was out of compliance for not filing its forms in a timely fashion. SunPower also acknowledged that past financial reports “should no longer be relied upon” because of accounting errors.

In the meantime, solar salespeople have been overcharging for systems and keeping the difference, says Walid Halty, a former solar salesperson who now runs a company, Monalee, designed to sell solar without salespeople. It’s one reason systems can be overpriced, Halty says, offering less of an inducement for potential customers to save much money by switching to solar.

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