SunPower suspends solar lease and power purchase agreements

SunPower Solar, one of CNET’s top national solar energy companies, announced this week that it is immediately discontinuing solar leases and power purchase agreements.

Reuters reported the change after investment notes (PDF) revealed letters sent to dealers by SunPower on Wednesday downgrading the company’s shares.

The news comes amid a difficult year for SunPower. In February, the company was subpoenaed by the U.S. Securities and Exchange Commission to seek additional information about allegations of financial misconduct by senior executives. SunPower’s CEO resigned the same month. Its auditor, Ernst & Young, resigned in June.

In April, the company cut other business lines, including direct sales, while laying off about 1,000 workers.

CNET’s SunPower review praises the solar equipment the company provides. The company’s Maxeon panels (made by a company that spun off SunPower in 2020) are some of the most efficient solar panels on the market, and SunPower backs these high-quality products with solid warranties. We rated SunPower for the affordability of its products and services. The end of solar leasing and power purchase agreements will remove these cheaper financing options available to SunPower customers.

It is still unclear what will happen to existing PV leases and PPAs and new lease and power purchase agreements that have not yet been installed.

CNET has reached out to SunPower for comment.

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SunPower is the longest-running domestic U.S. solar company, founded in 1985. The company is one of the few solar panel installation companies that operates in all 50 states.

Although the U.S. saw a record number of residential solar panel installations in 2023, market changes led to a decline in new rooftop solar panel installations in 2024. California’s NEM 3.0 policy has been particularly disastrous, stifling the growth of the solar sector in one of its largest markets.

Energy consultancy Wood Mackenzie predicts the residential solar market will shrink 14% this year, with changes in California a major factor.

While some solar companies may be struggling with current market conditions, this could be one of the best times for U.S. residents to go 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 during tax season.

If you want to learn more about how these financing options could impact your decision to go solar, read CNET’s articles on solar leases and power purchase agreements.