SunPower Halts Solar Leases and Power Purchase Agreements [CNET]

One of CNET’s picks for the best national solar companies is putting an end to some of its solar installation financing options.

SunPower Solar, one of CNET’s picks for best national solar companies, is ceasing solar leasing and power purchase agreement operations immediately, the company announced this week.

Reuters reported the change after letters SunPower sent to dealers Wednesday emerged in investment notes (PDF) downgrading the company’s stock.

The news comes during a rough year for SunPower. In February, the company was subpoenaed by the US Securities and Exchange Commission for more information regarding allegations of financial misconduct by senior executives. SunPower’s CEO resigned that month. Its auditor, Ernst & Young, quit in June.

The company cut other business lines, including direct sales, in April, when it also laid off about 1,000 workers.

CNET’s review of SunPower praises the solar equipment the company provides. The Maxeon panels the company offers (produced by a business that spun off from SunPower in 2020) are some of the most efficient solar panels on the market, and SunPower has backed up these quality products with strong warranties. We dinged SunPower on the affordability of its products and services. Ending solar leasing and power purchase agreements will remove these cheaper financing options available to SunPower customers.

It’s still unclear what will happen with existing solar leases and PPAs, or new leases and power purchase agreements that have not yet been installed.

CNET has reached out to SunPower for comment.

SunPower is the longest-tenured national US solar company, founded in 1985. The company is one of a small handful of solar panel installers that operates in all 50 states.

While the US saw a record number of residential solar installations in 2023, market changes have led to a contraction in new rooftop solar thus far in 2024. California’s NEM 3.0 policy has been especially catastrophic, hurting solar growth in one of its biggest markets.

The energy consulting firm Wood Mackenzie expects the residential solar market to shrink by 14% this year, with California’s changes mostly to blame.

While some solar companies may be struggling with current market conditions, this may be one of the best times for US residents to switch to solar. The Inflation Reduction Act expanded the residential clean energy credit, which allows homeowners who install a solar panel system to recoup 30% of its cost come tax season.

If you want to know more about how these financing options could affect your decision to switch to solar, read CNET’s articles about solar leasing and power purchase agreements.