Rising Tide, Sinking Ship

“A rising tide lifts all boats.”

If you been in business even a short time, you’ve likely heard that adage. If only it were universally true.

The team at SunPower Corporation sure wishes that was the case. This former giant in the residential solar market ($9bn market cap in 2021) announced recently that it was filing for bankruptcy.

In a market where growth in solar is still at an all-time high, rising interest rates and regulatory changes in California contributed heavily to SunPower’s demise. Interest rates increased the cost of already pricey solar projects, and California reduced the amount homeowners are paid for sending excess solar power back to the grid by 75%. Sightline Climate (CTVC) reports that change resulted in a 20% decrease in residential demand for 2024.

Combining those changes with departure of its CEO, an SEC investigation, and debt default in 2023, Sunpower was left with no choice.

Yes, renewable energy is booming, but unexpected events like these can sink the ship.

This is the sort of energy transition volatility we help clients navigate.