For years, SunPower has been one of the most recognizable names in the solar industry, providing high-efficiency solar panels, energy storage solutions, and solar system installations across the United States. However, recent financial turmoil has left the company struggling, and in August 2024, the company officially filed for Chapter 11 bankruptcy.
This announcement has caused confusion and uncertainty for thousands of SunPower customers who are now wondering what will happen to their solar systems, warranties, and ongoing service agreements.
If you are a SunPower customer, you may be concerned about the future of your solar investment. This article breaks down what the company’s bankruptcy means for homeowners and businesses, what you can do to protect your solar system, and the steps you need to take right now. 
SunPower’s Bankruptcy
This is all you need to know about the bankruptcy:
What Does Chapter 11 Bankruptcy Mean?
Bankruptcy filings can be confusing, but it’s important to understand that SunPower’s case is a Chapter 11 bankruptcy, which is a reorganization rather than a complete shutdown. This means the company is seeking to restructure its debts and business operations while continuing to function at some level.
Unlike Chapter 7 bankruptcy, which involves total liquidation and closure, Chapter 11 allows a company to negotiate with creditors and attempt to regain financial stability.
While this may sound like a temporary setback rather than a complete collapse, Chapter 11 filings are serious. In many cases, companies fail to recover and eventually transition to Chapter 7 liquidation, which means SunPower’s future is highly uncertain.
Why Did SunPower Go Bankrupt?
SunPower’s financial struggles did not happen overnight. A series of missteps, market challenges, and internal problems contributed to its downfall. One of the biggest issues was its inability to effectively manage its financial resources. In 2023, the company suffered from accounting errors, operational inefficiencies, and declining revenue.
Additionally, external factors such as rising interest rates, increased competition, and supply chain disruptions worsened its financial health. The solar industry has seen rapid growth, but companies that fail to adapt to changing market conditions, government policies, and consumer demands often struggle to survive.
How SunPower’s Bankruptcy Affects Customers?
Here you will learn the reasons why this bankruptcy affects customers:
Will the Company Continue Operating?
One of the most common concerns for SunPower customers is whether the company will continue operating. As of now, the company is still functioning but on a limited basis.
However, with the bankruptcy proceedings underway, there is no guarantee that the company will remain in business long-term.
What Happens to My Solar System Installation?
If you have already installed a SunPower system, you own the equipment and can continue using it. However, customers waiting for an installation may face delays or cancellations.
Many projects have been put on hold, and it’s unclear if or when they will resume. If you are in this situation, it’s advisable to contact the company (if possible) or consider alternative options.
What About Customer Support?
One of the most significant changes customers have noticed is the decline in SunPower’s customer support. The company has shut down its mySunPower app, web portal, and customer service phone lines as of September 20, 2024. This means that getting help directly from the company is now nearly impossible.
Customers experiencing issues with their systems may need to seek assistance from third-party service providers or the manufacturers of their equipment. This is especially true for those dealing with maintenance, performance monitoring, or troubleshooting concerns.
Warranty and Service Agreements
Here, you’ll learn about the SunPower’s warranty and service agreements:
Are SunPower Warranties Still Valid?
One of the biggest concerns for SunPower customers is whether their warranties are still valid. The good news is that most of the company’s equipment warranties are backed by manufacturers, not SunPower itself.
For example, solar panels sold under the SunPower brand were produced by Maxeon Solar Technologies, an independent company. This means that your panels are still covered by their original manufacturer warranty, as long as Maxeon remains in business. Similarly, inverters and battery storage systems from third-party companies like Enphase are also still under warranty.
However, service and installation warranties offered directly by SunPower may no longer be honored. If the company provided a warranty for labor, installation, or system monitoring, there is a strong possibility that it is now void.
How to Check Your Warranty Status?
To verify your warranty coverage, follow these steps:
- Locate Your Warranty Documents: Review your purchase agreement, installation contract, and warranty details.
- Contact the Manufacturer: If your solar panels or inverters were produced by a company like Maxeon or Enphase, reach out to them directly to confirm coverage.
- Find a Third-Party Service Provider: If your system requires repairs or maintenance, independent solar service companies may be able to help.
Options for System Maintenance and Repairs
Let’s explore the options for system maintenance and repair after this bankruptcy:
What If My System Needs Repairs?
If you experience issues with your solar system, you will need to rely on third-party technicians and service providers. Many local solar companies offer repair and maintenance services, even for SunPower systems.
When looking for a service provider, consider the following:
- Check Online Reviews: Look for a company with a strong reputation in solar maintenance.
- Verify Experience with SunPower Systems: Not all solar technicians are familiar with the company’s technology.
- Get Quotes from Multiple Providers: This ensures you receive a fair price for repairs or maintenance.
What If I Leased My System?
For customers with leased SunPower systems, the situation is more complicated. Since the company still owns the leased equipment, it is unclear how leases will be handled during bankruptcy proceedings. There is a possibility that another company may acquire SunPower’s lease agreements, but customers should continue making payments to avoid any financial penalties.
Financial Considerations
You must be worried about your finances related to this matte. Here, we guided customers about financial considerations you must know after SunPower went bankrupt:
Loan Payments and Financing
If you financed your solar system through a loan, your loan agreement remains in effect. You must continue making payments to the lending institution to avoid penalties or credit damage.
Will Another Company Take Over SunPower?
There have been reports that Complete Solaria, another solar company, is considering acquiring parts of SunPower’s business. If this happens, customers may see a transition where their service agreements and warranties are transferred to a new provider. However, as of now, no final decisions have been made.
Steps Customers Should Take Immediately
If you are a SunPower customer, take the following steps to protect your investment:
- Gather all Documentation: Keep copies of contracts, warranties, and purchase agreements.
- Contact the Equipment Manufacturer: Confirm warranty details with companies like Maxeon or Enphase.
- Find a Third-Party Solar Technician: Research local companies that can provide service and maintenance.
- Monitor Bankruptcy Updates: Stay informed on the company’s situation to anticipate any potential changes.
- Continue Loan or Lease Payments: Avoid financial penalties by keeping up with any outstanding payments.
What does the Future Hold?
SunPower’s bankruptcy is a major disruption for thousands of solar customers. While the company attempts to restructure, there is significant uncertainty about its future. The most important thing customers can do right now is be proactive—secure warranty coverage, find alternative service providers and stay informed about developments.
While SunPower’s downfall is unfortunate, it does not mean your solar investment is worthless. By taking the right steps, you can ensure that your system remains operational for years to come.