Biden’s ironically named Inflation Reduction Act (IRA) was supposed to create millions of green jobs and launch the “sustainable power” industry.
Subsidies flowed to support electric vehicles, wind farms, and solar energy. We have been covering the slowdown in the EV market, and residents of the East Coast are questioning all the promises made by the wind energy companies after the Vineyard Wind blade failure.
Now, it’s time to turn our attention to solar power. SunPower, the company that provides solar panels to many Californian homes in the sunny Coachella Valley area, filed for bankruptcy this week.
It is the latest development in a saga that has seen the company facing numerous serious and seemingly escalating challenges over the past several months, including allegations about executives’ misconduct related to the company’s financial statements and a recent decision that SunPower would no longer offer new solar leases.Days after the latter announcement, Coachella Valley-based Renova Energy, which markets and installs SunPower systems, said it was ending its partnership with SunPower and temporarily pausing operations after not receiving required payments from SunPower.SunPower’s executive chairman wrote in a letter posted on the company’s website on Monday that the company had reached an agreement to sell certain divisions of its business and suggested it was looking for one or more buyers to take on the rest, including the company’s responsibilities to maintain solar systems it has previously sold or leased.
It is important to note that SunPower was the industry’s “darling” to understand the magnitude of this development.
Founded in 1985 by a Stanford professor, SunPower was, for the past two decades, a darling of the solar industry. The company helped build America’s biggest solar plant, called Solar Star and located near Rosamond, California, and has installed solar panels on more than 100,000 homes.The company’s stock price has fluctuated dramatically, peaking during the solar stock frenzy of late 2007. As recently as January 2021, SunPower’s valuation momentarily reached $10 billion, buoyed by the expansion of its residential solar panels program.But since then, the company’s value has cratered — and this year, its situation became particularly dire.
It is also important to note that earlier this month, the bankruptcy of a solar-powered company in South Florida created an array of problems on the South Coast of California. Subcontractors are scrambling to find ways to guarantee payment for work on homes with equipment from the firm.
Meanwhile, homeowners are regretting their misplaced trust in eco-activists and city officials.
The business — Electriq Power Inc. — was putting solar panels and batteries on Santa Barbara rooftops at no expense to homeowners and with the blessings of the cities of Santa Barbara, Goleta, and Carpinteria. But then Electriq filed Chapter 7 on May 3, freezing all its operations.This prompted one of its subcontractors, Axiom 360 of Grover Beach, to place mechanics liens on homes for which it had yet to be paid. This preserves Axiom’s options for full payment of its installation work and is not unusual among contractors. But for homeowners who didn’t expect any financial outlay, it came as a shock, especially as the recording notice lists foreclosure in 90 days among the penalties.“You’re helping the environment. You’re not paying high rates to Southern California Edison,” said homeowner Randy Freed, explaining why he signed on to Electriq’s PoweredUp Goleta program. He was pleased with the savings in the solar array and storage batteries, but then he received the mechanics lien in June. The possibility of foreclosure was unanticipated, Freed said, and he’d relied on the cities’ endorsements. “It’s a great program; we’ve checked them out,” he recalled the cities saying on a postcard he received.
HotAir’s Beege Welborne takes an in-depth look at the cascade of warnings that indicate SunPower and the residential solar market are in serious trouble. She also hits on a point that is true for all green energy schemes: Today’s technology cannot keep up with the promises being made about tomorrow.
The technology side still hasn’t ironed itself out and may never with as saturated as the market is. With interest rates as high as they are and home prices through the roof, no one wants to pay a fortune for something that’s not rock solid….That “sustainable” growth is only possible once all the artificial supports are knocked away and the technology proves viable and worth the cost once and for all.
Of course, the solar industry isn’t helped by the fact that the cost savings for customers aren’t quite as lavish as originally promised.
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