Large U.S. Solar Company Declares Bankruptcy

SunPower, a big name in the U.S. solar industry since 1985, has officially declared bankruptcy in a recent announcement.

This decision comes during a challenging year for the company, marked by significant changes in leadership, financial troubles, and drops in stock prices (1). SunPower’s recent halt in solar leasing and PPAs seems to have only cemented this downward trend in the company as this Monday August 5th SunPower’s Executive Chairman, Tom Werner, sent out an official announcement to SunPower team members (2).

What this Means:

SunPower’s recent struggles should not be seen as a reflection of the solar industry as a whole, but instead just one aspect. When looking at the industry as overall, the larger solar industry remains overall highly favorable to customers. The Inflation Reduction Act, for instance, offers residential clean energy credit, allowing homeowners or businesses to save up to 30% or more of the cost of installing solar panels through tax credits!

Very large-scale companies, like SunPower, often have a very different business model than smaller more local companies like Kasselman Solar. One big benefit we offer is owning your solar panels. At Kasselman Solar, we only sell solar panels, we do not offer solar leases. Paying for your solar panel system in full is one option, however this upfront cost can be intimidating at first. There are many additional financing options for purchasing solar which can make going solar easier for more people, including loan options, solar tax credits, incentives, rebates and more. The solar industry as a whole is growing more each year, and this means that incentives and rebates will likely keep decreasing as solar becomes more commonplace. Read more on New York State solar incentives.

While leasing solar may seem like a more affordable way to save with solar, you are often losing out on greater savings by not owning solar, continue reading to look at a comparison of buying local solar vs. leasing solar.

Why Buy with Kasselman?

Purchasing solar panels offers greater control, generally a higher return on investment, and helps New York progress towards its energy goals.

As highlighted in a Forbes article on Leasing vs. Buying, “If you have the available funds, then buying solar panels is ultimately the savvier financial decision…the average amount of time it takes to get a full return on the investment due to energy savings is between seven and 10 years. You can also benefit from federal tax credits and reimbursements when you own the system” (4).

Both leasing and buying solar panels will allow you to help the environment and help New York further its climate goals, however leasing solar will leave you tethered to the solar company which can become uncertain in cases such as SunPower’s bankruptcy. When it comes to going solar, owning your panels is often the better long-term investment if your primary goal is saving money!

Take a more in-depth look at leasing vs. buying solar panels!

Updated: 8/7/2024

Ava Clemenzi

Ava Clemenzi, Assistant Marketing Specialist at Kasselman Solar, is a recent graduate of Rensselaer Polytechnic Institute in Electronic Arts and Communication, Media & Design with a minor in biology. She is local to the Capital Region and joined Kasselman for the opportunity to expand upon her experience in the marketing and design field while working with and helping others in the community.