A major solar energy player is calling it quits.
SunPower, a major solar panel manufacturer, announced Monday that it is filing for bankruptcy. The development is latest in a string of bad headlines for a company that once helped create a plane that crossed the U.S. with propellers energized by sunbeams. SunPower is expecting to sell itself to rival Solaria pending the results of bankruptcy auction.
“For nearly 40 years, SunPower has made solar energy more accessible to Americans, driven by our mission to change the way our world is powered,” executive chairman T.J. Rodgers said in a statement accompanying the news. “We are confident Complete Solaria’s CEO, T.J. Rodgers, will carry forward our vision to shape the future of residential solar as a pioneer in this space. In light of the challenges SunPower has faced, the proposed transaction offers a significant opportunity for key parts of our business to continue our legacy under new ownership.”
Though SunPower was once the largest solar panel manufacturer in the U.S., it has recently run into trouble. In a bankruptcy court filing, the company said that high U.S. interest rates and consumer demand weakened by inflation were forces too powerful to overcome a wave of funding unlocked by the Inflation Reduction Act.
In April, the company announced that it would likely have to pay some of its lenders back early because it misstated its 2023 earnings. In July, SunPower received a subpoena over its accounting practices from the Securities and Exchange Commission; Ernst & Young resigned as the company’s auditor.
The company’s stock has fallen more than 90% this year. Shares are currently trading for less than 50 cents.
