SunPower Corp., maker of panels widely used on Long Island, files for bankruptcy

SunPower Corp., a brand-name supplier of some of the most popular solar panels in the U.S. and on Long Island, filed for Chapter 11 bankruptcy protection this month, but customers learned that its manufacturer, Maxeon, honors long-term warranties.

Thousands of Long Islanders have been receiving bankruptcy letters in recent days from SunPower, a Richmond, Calif.-based solar panel supplier that previously manufactured the equipment before spinning off the division as Maxeon Solar Technologies. SunPower and Maxeon panels are warranted for 25 to 40 years.

The issue is significant because solar panel customers pay tens of thousands of dollars for systems that are expected to last more than 20 years. Local installers say they have had very few problems with faulty panels, but customers want reassurance.

SunPower has already begun the process of selling some of its assets as it seeks relief from Chapter 11 debtors, according to financial documents. Long Island dealers said concerns about warranty coverage have been addressed by Maxeon.

“In light of the sad news that SunPower has filed for bankruptcy protection … we want to provide an update regarding warranty support for solar panels manufactured by Maxeon Solar Technologies and supplied by SunPower,” the company wrote in an Aug. 15 letter to installers.

“…If you have a SunPower system that includes SunPower-branded panels that are manufactured by Maxeon Solar Technologies, Maxeon will fulfill its warranty obligations for those solar panels,” the letter reads. Maxeon says it will contact SunPower customers “shortly” to register the panels.

“It’s still objectively a very high-quality panel,” said David Schieren, CEO of EmPower Solar and one of SunPower’s largest customers on Long Island. SunPower panels have a local market share of 15 percent, he estimated, in a Long Island market of more than 70,000 residential systems. The bankruptcy filing won’t affect his business, Schieren said, because he’s switching to Maxeon-brand panels instead of SunPower.

Solar installers have hit a rough patch in the wake of the COVID pandemic. Sales initially surged after state and federal building permits were granted, and homeowners focused on fixing up their homes and working from home, sending utility bills soaring.

Solar panels can reduce your electric bill to a monthly service fee of just over $15, but it can take 5 to 15 days. Down 7 years for an initial investment of $20,000-$50,000 to pay off, even with a 30% federal tax credit, among other incentives. PSEG and the state are offering further incentives to those who install the battery on their systems, and new time-of-use rates could lead to further rate savings.

“What you see in this sector today, despite the headwinds, is that demand has stabilized, and the bright spot is the addition of batteries to solar,” said Schieren, who is also chairman of the New York State Solar Energy Industries Association, a business group.

John Rocchetta, vice president of GreenLogic Solar in Southampton, said he was receiving 20 to 50 emails a day from customers concerned about the bankruptcy filing and forwarded a note from Maxeon to let customers know their panels were still under warranty.

“Maxeon is taking responsibility,” he said. GreenLogic, he added, has sold more than 200,000 SunPower solar panels in the company’s 20-year history and has found only a few that have problems. “Maxeon is still the best panel we’ve made,” Rocchetta said.

Like other panel installers, GreenLogic saw sales decline after COVID in late 2023 and early 2024, but business has rebounded, especially as interest rates stabilized or appear to be falling. Most installers arrange long-term loans for customers who buy panels, with some using lower-interest government loans or personal loans from banks.