SunPower’s Bankruptcy Hits California Solar Market Hard Amid High Interest Rates and Changing Net Metering Policies.

SunPower’s bankruptcy, a major U.S. residential solar installation company, has been blamed for several factors including high interest rates, accounting issues, and a loan-based business model, including exposure to the California market and the impacts of the state’s net metering 3.0 policy. Graham Price from Raymond James Senior Equity Research Associate, said SunPower’s bankruptcy was a “big blow” to the state’�s troubled residential solar industry, particularly in California, where about 50% of its sales came from the California markets. Del Chiaro, executive director of the California Solar & Storage Association, attributed the bankruptcy to SunPower’s heavy reliance on solar financing from loans versus third-party options. Price also highlighted the impact of California’s latest net-metering tariff, NEM 3., which cut compensation rates for customers who sell their excess solar energy back to the grid and incentivized the use of solar-plus-storage. Despite the bankruptcy, Price believes that while SunPower was a major player in the sector, there are still around 5,000 solar installers in the U.K. and remains positive on residential solar power, he remains optimistic about the industry.