Is SunPower about to collapse?

SunPower’s looming collapse, the fallout from that, and a hopeful sign for the industry in California.

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Solar Dispatch
July 25, 2024

Good morning. In today’s newsletter we’re covering SunPower’s looming collapse, the fallout from that, and hopeful signs for the industry in California from one company’s earnings.

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Today’s newsletter is 862 words for a reading time of 4½ minutes. Let’s jump in.

THE ESSENTIALS

SunPower may be on the brink of collapse

  • SunPower, one of the largest residential solar installers in the country, said it will no longer sign new leases or power purchase agreements.

  • The installer lost $200 million last year, and has faced a number of issues from layoffs to late filings of financial statements to financial misconduct allegations.

  • “We do not believe this is a temporary halt, but rather an indefinite suspension of SPWR’s future dealings,” one JPMorgan Chase analyst wrote.

Why this matters: SunPower’s collapse could raise doubts among investors and lenders about the overall business model of the industry. Meanwhile, dealers are scrambling to pivot to SunPower’s competitors.

Dealers facing disaster after SunPower halt, survey finds

  • Staying on the SunPower story, an informal survey of dealers by Roth Capital Partners revealed bad news for SunPower dealers.

  • One contact had been in business for 10+ years but was now having to lay off most of his staff. Another said they expected around 40% of SunPower dealers to go under. Renova, a California installer, told customers it was suspending operations in California and Arizona.

  • Others expressed concern that dealers won’t be paid out for recent projects and could be left warrantying installations.

Why this matters: It’s not just SunPower itself that’s in trouble — its difficulties are having serious ripple effects across the industry.

Enphase earnings include hopeful signs for California industry

  • Shares in Enphase, a manufacturer of solar micro-inverters and battery storage, surged almost 15% yesterday on a positive earnings report.

  • Enphase said sales to installers in California grew 7% since Q1 because of growing demand for batteries, which have increased the average revenue from a solar system by 1.5x.

  • The company’s CEO said 90% of new solar systems in the state now included battery storage.

Why this matters: California’s solar market has been hurting since the state cut incentives for rooftop solar last year. Enphase’s results show that the situation may be stabilizing and the uptick in battery installs could be a lifeline for solar businesses.

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WHAT ELSE IS HAPPENING

➡️ First Solar investigating patent infringement. The manufacturer says it is looking into possible infringement of its patent on technology related to TOPCon cell manufacturing. It didn’t say what companies it believed may have infringed on its patents. (More)

➡️ New Hampshire revises renewable energy funding. The state is scrapping its residential solar rebate program, widely viewed as ineffective, and re-directing the funding to cities and towns to develop larger-scale solar projects. (More)

➡️ Massachusetts passes bill to spur solar. The law will create new solar and storage development incentives and streamline siting and permitting for renewable energy projects. (More)

➡️ Senators introduce permitting reform law. Senators Joe Manchin and John Barrasso co-sponsored the Energy Permitting Reform Act of 2024, a bill to speed up approvals for new energy projects, including solar developments. It also would double output targets for new renewables on federal land. (More)

➡️ Solar Power World releases 2024 top contractors list. Moss, Primoris Renewable Energy, and SOLV Energy top the list for most KW installed last year. (More)

AROUND THE WORLD

🇫🇷 France’s subsidy for renewables to balloon. Falling wholesale power prices will force the government to spend $6 billion to subsidize renewable power in 2025, according to a regulator’s forecast. About half of that will go towards solar producers. (More)

🇨🇳 China adds 102.48GW of new solar in the first half of 2024. That represents growth of over 30% since the same time last year. More than 23GW were installed in June alone. (More)

🇦🇺 Australia grid-scale solar grows. Output increased to 1.4GW in Q2, up by 132MW since the same time last year. The country’s energy regulator said there is 43GW of new capacity in the pipeline. (More)

WHAT WE’RE READING
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