SunPower Corporation in the USA has filed for bankruptcy protection – but Australian owners of SunPower branded solar panels shouldn’t panic.
Earlier this week, SunPower Corp announced the company and some of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code1. The firm also announced it had entered into a purchase agreement with Complete Solaria Inc. for the assets associated with its Blue Raven Solar business, New Homes business, and non-installing Dealer network.
In a note to the SunPower team, Executive Chairman Tom Werner said:
“We know you may have questions about what this announcement means for our valued customers and partners. While we may not have all of the answers at this time, we intend to keep you updated as necessary as we navigate this process.”
This development follows an announcement in April this year that the company was winding down SunPower Residential Installation (SPRI) locations and ditching direct sales in the USA. That announcement was accompanied by news of major job losses at the firm; estimated at the time to affect 1,000 staff.
A Very Brief History Of SunPower – And Maxeon
Headquartered in California, SunPower was founded in 1985 by Richard Swanson, an electrical engineering professor from Stanford University. “Swanson’s Law” is named after him, which observes that the price of solar panels tends to drop 20 percent for every doubling of cumulative shipped volume.
Throughout the 1990’s, the company’s solar technology was used to power innovative applications, such as solar race cars and novel aircraft; including NASA’s Pathfinder.
Mr. Werner was recruited in 2003, and in 2004, the firm’s first manufacturing facility started production. The company was listed on the NASDAQ in 2005, and another manufacturing facility came online in 2007. During the decade, SunPower also set various records for solar cell efficiency.
In 2011, French oil company TotalEnergies acquired a majority stake in the firm, and in 2014 SunPower cranked out its billionth solar cell. The rest of the decade was marked by other accomplishments and milestones.
In 2020, the solar PV manufacturing aspect of SunPower was separated from the US installation side and a new company was born – Maxeon Solar Technologies. Maxeon began producing SunPower branded solar panels, although the Performance series was still manufactured by SunPower in the USA for that market only for several more years.
Throughout its PV manufacturing period, SunPower maintained a focus on innovation and premium quality modules – with a price tag to match.
What’s The Impact In Australia?
A notice on the Australian Maxeon web site states:
“SunPower products are manufactured by Maxeon Solar Technologies and sold by its subsidiary SunPower Corporation Australia Pty Ltd., independent from the US-based SunPower Corporation.”
Maxeon is responsible for the warranties of any existing SunPower panels installed here in Australia. So, here’s hoping Maxeon (which has also been experiencing challenges) will endure. They’ll need to for a very long time as some warranties are 40 years.
SQ No Longer Recommending SunPower/Maxeon Panels
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UPDATE 16 September 2024: Maxeon have recently confirmed a $US100M cash injection. This improves their financial position considerably and gives us the confidence to add them back to our recommended brands.
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SunPower branded panels have long been listed on SolarQuotes’ recommended solar panels chart. Sadly, they have now been removed. While separate companies, the average residential solar buyer doesn’t know or care about the distinctions and the writing is on the wall for expensive modules given other lower-cost good quality solar panels available these days2.
SolarQuotes operates under the “grandmother rule”:
“The rule is – if I wouldn’t recommend a solar installer to my grandmother, I won’t recommend them through SolarQuotes,” says SQ founder Finn Peacock.
The same applies to solar components – and in this case, for the reasons stated above.
Footnotes
- Chapter 11 usually involves a reorganization of a company’s assets and debts under court supervision, but in this case it also provides breathing room to complete a sale process while operations continue. If SunPower is unable to facilitate sale transactions, the businesses will be wound down. ↩
- But it’s worth noting some of those manufacturers have been or are being pursued by Maxeon over alleged patent infringements. ↩
About Michael Bloch
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I have Sunpower panels labelled as ‘performance’ on my original invoice, from a December 2022 installation. Your article says these were produced for the US market only, from 2020, is it possible they’re actually Maxeon panels?
Cheers
Hi Nick
If you have SunPower Performance panels in Australia then they were almost certainly made in China.
I see Maxeon also produce the performance panels, and they’re based in Singapore?
The Maxeon Performance panels sold in Australia are made under licence in China.
I’m also a little confused.
Your opening remark says it’s SunPower US and that Australia not to worry.
But then your closing remark says you’re not recommending them ?
This seems confusing and hypocritical. Should we be concerned or not? ! ?
In the closing remark you to as far to fairly state they are separate company.
A quick search has found they are indeed separate company listed on NASDAQ and that the average person could not tell the difference?
The irony, you inform the average person.
You’ve effectively compounded the problem of people not understanding.
At best, an editing gaff.
At worst.
A bias statement potentially leading to large damages against an unaffiliated NASDAQ trading company.
So there’s now no top end panel brands, just upper mid and mid tier which are (mostly?) non-Chinese brands, the entry level ones which are Chinese, and all the not recommended brands which are Chinese?
That doesn’t seem optimal.
Hi George,
REC alpha pure are made in Singapore and not to be sneezed at.
However, in the article it states “…writing is on the wall…” which would imply REC also however SQ has not gone as far to publicly question their ability to apply products or not recommending them?
I would also like to extremely highlight that lack of questioning around forced labor supply chain. Almost as though its a taboo subject to mention?
This would impact near all the panels SQ recommends with the exception of maybe 3 (SunPower) until recently.
Michael, we appreciate your blog post, especially when you point out that Australian owners of SunPower branded solar panels needn’t worry. However, it is disappointing that the blog ends with the lack of recommendation for our SunPower branded solar panels from Maxeon. The SunPower branded solar energy panels designed and manufactured by Maxeon continue to be an excellent choice for installers and homeowners in Australia, now and in the future.
Maxeon is a leading manufacturer of solar energy products including the world’s highest performance solar panels, which we sell in over 100 countries worldwide. As you know, in Australia, we sell our solar panels and other solar energy solutions under the SunPower brand. It’s also important to note that we are the longest continually serving solar provider in Australia. No other company has demonstrated its commitment to this market the way we have.
As mentioned in your blog, Maxeon has no existing relationship with SunPower Corporation other than our use of the product brand name, and the condition of their business has no impact on Maxeon or the support we provide our customers. It is also important to note that our product warranties for SunPower branded products sold in Australia will continued to be honored as they always have been.
We’re proud of our nearly 40 years of solar energy leadership, and this legacy includes the ownership of over 1,900 patents to design the most innovative, reliable, and sustainably made solar panels and energy solutions for residential and commercial customers, and we continue to invest in innovation that provides the best solar products on market.
We strongly believe that Maxeon is the partner of choice for dealers and installers in Australia who want to help lead the transition to clean energy and provide the best solar energy products to their customers. And we encourage your readers who may have additional questions to contact us directly at +61 1800 786 769
Hi Stephen,
Thanks for the clarification and thanks for the assurance. We’re always keen to see consumers are getting the support they’ve paid for.
Does this include the panels labelled SunPower Performance panels Stephen? I had those installed at the end of 2022. I have seen the performance series included on Maxeon publications, so assumed yes.
Cheers
Thanks for your question Nick, it’s important to distinguish between the two ranges of SunPower by Maxeon Solar Technology products that are available in Australia:
1. “Maxeon IBC Range” – ultra-high efficiency, patented Interdigitated Back Contact technology, manufactured in Mexico & Malaysia which now comes with a 40 year product and performance warranty.
2. Performance Series – high efficiency patented shingled cell technology, manufactured in Eastern China. Looking at the timeline I’d suggest you would have P-6 or P-3 series, which had a 25 year product and performance warranty. Latest P7-technology is N-Type top-Con, which carries a 30 years product and performance warranty.
Also I understand the dilemma a recommendation site like SQ has in this sort of situation, as it obviously can attest to the quality of solar hardware and installations, but it’s much more difficult to divine the commercial sustainability of each company in such a fast-moving industry.
It’s a real bind. They could just say ‘we list these panels and installers because we know them to be of great quality, but we don’t attest to the commercial sustainability of any particular company’. But that will drive people away, any suggestion that companies may go belly up. But companies always go belly up anyway, usually well within the timeline for modern 25-40 year panels. I think the average Australian smaller business for example lasts less than 5 years.
I don’t know the answer to any of that prior to a time when certain big players become the mature dominant and stable pivots of the industry. Like we see in the car industry, trusted brands with generations of happy customers. But people need to keep buying panels in the meantime, to get to that point.
On balance I’d pause recommending lower-cost quality panels to my grandmother too, even if they’re great panels, because there’s no guarantee those companies will survive either. Maybe it just needs a caveat, that these are the best panels and installers we know, and SQ can’t guarantee every company will survive. That’s pretty standard for all other consumer goods.
Interesting take.
Maybe they should apply a metric to installers.
If panel rating is based around commercial profitability why recommend installers who have no tenure or financial provings.
Why is it an important factor for panels but not for the business SQ recommends to install the product which also have warranty obligations to a client and home?
Their panel recommendation based around financial security, in my mind, now has thrown their entire recommendation system for installers out the window.
Especially when the installers pay for recommendation and leads.
Isn’t this now a conflict of interest and ethics?
I have no problem with peoples’ experience of both hardware and installers being factored into ratings. But I think it’s an impossible task to be held responsible for ongoing financial viability of either hardware or installation companies. I don’t know if commercial due diligence is done on all hardware and installation companies that are recommended?
If it was me, I’d be saying we’re happy to recommend based on quality of hardware and installations, including feedback from customers. But I think it’s fine and reasonable to say ‘we don’t guarantee any particular business will survive’. Installers may also need to have fallback clauses in their warranties, in the event of failure of any of their suppliers. Like if I buy a fridge of Brand X from a retailer, if Brand x goes belly up, the retailer will still have to offer some form of warranty compensation. Standard consumer law.
Good points Nick,
Solar has ridiculously long warranties but matters are confused by the common sales terminology of “tier 1”
People infer that means “top quality” but in reality this is actually a measure of financial health for the company. It’s a financial industry guide for bankability.
Suntech solar are a great example. They make good quality panels and have done for 15 years, but the financial state of the company has been variable and they’re not given “teir 1” because of it.
Thanks Stephen, great feedback. Yes P-3 I think. 3 AC SPR-P3-380-BLK-E3-AC.
As a proud owner of a long standing installation company with over 15 years experience in this industry, supporting the SunPower (Maxeon Solar Technologies) range of products, I stand by the SunPower Maxeon product for its exceptional quality and delivery of the most efficient panels in the industry. This article muddied the water so badly that it needs to be retracted. It is poorly written and while acknowledging the difference between the two companies, creates doubt. This industry is hard enough to work in, without initiating such confusion. The Australian team at SunPower (Maxeon Solar Technologies) are the most committed highly valued team in Australia who constantly support their network of partners through the production of leading technologies; being up front; always contactable and treat each and every one of us with sincere respect. If ever you want to trust a company to deliver your high quality solar solutions now and into the future, then it’s this SunPower Maxeon team and the partners, like us that they support.
Does Sunpower have anything to do with Sungrow?
No.
Disappointed. I don’t think this article does the solar industry any favours. As others have said, it’s confusing and contradictive.
– SunPower Corporation in America and Maxeon Technologies in Singapore are two separate companies. The financial situation of SunPower Corp does not impact Maxeon or their SunPower branded panels in Australia.
– They’re top quality panels proven to be more resistant against shading, hot spots, cell microcracks, corrosion and encapsulant degradation. Many would say they’re THE best quality panel money can buy.
– You say “the writing is on the wall for expensive modules”, yet continue to recommend REC panels. REC doesn’t even have an Australian subsidiary!
– You link to another SolarQuotes article about Maxeon “experiencing challenges” because they were temporarily non-compliant with Nasdaq because of not filing their Annual Report on time. That issue was resolved back in May, just 7 days after the article was published.
– With partner, TCL, upping their investment in Maxeon, the recapitalisation will place Maxeon in a “solid financial position”
https://www.pv-magazine.com/2024/05/31/chinese-pv-industry-brief-tcl-zhonghuan-reveals-plans-to-acquire-majority-stake-in-maxeon/
– Lastly, many quality-focused solar companies, including some in the SolarQuotes network of recommended installers, still stock and recommend SunPower / Maxeon panels. An article like this does not help them. In fact, this article helps bottom-dweller solar companies convince customers NOT to choose a quality solar panel brand.
I agree, Sunpower/Maxeon make wonderful panels.
But as Michael says “the average residential solar buyer doesn’t know or care about the distinctions [between SPWR and MAXN]” and I’m concerned that this news will make life even harder for a financially struggling MAXN (Altman-Z Score in June 2024 was MAXN: -1.42 compared to SPWR: -1.44) as – in the real world it is highly likely to scare off consumers, potentially a vicious circle of financial pain.
Also SPWR must have been a major customer of MAXN…
If I’m wrong about MAXN and they emerge from financial intensive care, I’ll reconsider as the new evidence comes to light.
I have to really question the logic train here.
I understand what you are saying regarding the average person and lack of understanding. Completely agree!
It’s the same as any industry. Cars, solar, building etc.
The issue presenting around this “confusion” is that you are a large, referred platform for information. Yet the information you are providing in this case compounds the very issue you’re stating concern over?!
In your effort via statements to list differentiation your actions, compound the confusion and financial difficulty associated and do not support the words.?
It’s a very odd stance to take.
Summary
“These are different so don’t worry, but we’re worried so we won’t recommend them and the average person won’t know the difference”
Numerous industry and even public have stated to me how confusing your article is on this and that it’s “misleading”
The logic:
1) SPWR going bust increases the chances of MAXN (who are already VERY precarious financially) going the same way IMO.
2) So they are off the list of brands we’d recommend to a friend.
3) We will reconsider if MAXN can show they are out of financial distress in the future.
And yet Longi lose over $900M in the first half of this year and they are still on your list. Aiko are undergoing multiple legal cases based around patent infringement so speculative and potential risk to their future sustainability come into question, they are also predicting a loss of around $500M for the first half of the year. Multiple other companies on your list have had mass recalls and are all reporting losses.
The Maxeon Solar Technologies Performance Series 3 & 6 most recently scored the two highest consistent scores by LV Lab ACT Goverment commissioned comprehensive testing at the end of 2023. Round 1 scored 99 out of 100 and the same in round two. Many of your other “recommended” panels had a swing of over 20 percent in quality between tested modules, outlining how much of a gamble it can be owning a cheap panel.
If you were serious about your approach Finn, you would have delisted SunPower when Maxeon Solar Technologies was split off and separately listed. It brings into question if you’re genuinely working for the mum and dads at home in providing honest and fair advice, or else other persuasive anchors may be present.
Here is the kicker, even though any business in this current environment could disappear overnight with the world economy in shambles, the likelihood of you needing the warranty of a SunPower panel, either Max or Performance is so slim that it’s still a safer bet than any other, even if they are no longer here. Second to that there is a good change that if you have SunPower / Maxeon Solar Technologies panels on your roof, you will have used an installer that genuinely cares and is of high quality. Should something go wrong, there is a good chance they will do the right thing by you as well. All speculation of course, but so is your reason for removing your recommendation.
Your reply has some good points, but IMO would have been better without the personal attack, and allegations of me being corrupt.
In my view solar quote still recommend sunpower and maxeon panels unless they confirmed they stop making those panels( such as lg did 3yrs ago).
I got installed sunlower maxeon 6 ac panels 2yrs ago and very satisfied, only thing its very expensive double or tripple the price than china own brands.
Also disappointed to see that you are not recommending Maxeon panels.
These panels are certainly expensive vs other panels if you don’t consider what they are adding to an installation – but that is just not how evaluation should be done.
I would suggest there is no other panel that has the shade tolerance of these panels (in terms of their resilience against heating and panel damage – worst case fire).
They fill a need for consumers that want to extract the maximum out of limited & partially shaded roof space in the era of electricity demand rising (EVs, A/Cs, induction cooktops, heat pump water, GenZ, etc). For example, I have an install where there is building shading in the middle of the day for part of a number of panels and I either can’t confirm that the diodes will prevent localised hot-spots OR I just don’t want to rely on a diode to prevent it. The Maxeon panels have strong evidence that even without a functioning diode the panel will prevent damage/fire and actually still produce some output.
The REC Alpha panels that SQ seem to have a love affair with 😉 can’t deliver on that. And there is history of heat deterioration with them that REC have tried to pass off as “cosmetic-only” (they may be correct, but is there any independent testing to confirm that?).
What a horribly researched and poorly articulated article.
You’ve confused a lot of people with this article and caused damage to the Maxeon Sunpower brand in Australia, which is not in any way affiliated with the company your article is written about.
It’s disgusting that you’ve removed one of the best-quality and highest-performing panels from your ‘recommendations’ list on the whim of a blog author’s personal opinion. Your credibility in this space continues to diminish.
Installers everywhere are now telling customers to put no credence in this article ….you are damaging the very industry you claim to support.
What you should have done was help to dispel the false view that the two companies are connected, and instead, you’ve fuelled the fire.
I’m glad Maxeon replied directly and refuted your article. I wonder if there may be some litigation forthcoming for damages
Daniel,
Are you Alumni of the Elon Musk School Of Litigation?
Elon: “Advertise with me or I’ll sue you!”
Daniel: “If you don’t recommend their product they should sue you!”
Chill out brother.
Finn
To be honest, given that no matter what you buy it’s a pretty ambitious hope that the company bulding it will still be here in 25-40 years (based on business failure rates in all industries, most don’t survive 5 years), I’d be perfectly happy if if the SQ position was:
“We think these panels/inverters/installers (or whatever) are top quality. We’re not clairvoyants so we can’t tell you if the company who made them will still be here in 25-40 years. But the quality suggests the gear will last that long.”
Thanks Ronald, yes Stephen from Maxeon (I think) confirmed that too.
“Solar has ridiculously long warranties but matters are confused by the common sales terminology of “tier 1”
People infer that means “top quality” but in reality this is actually a measure of financial health for the company. It’s a financial industry guide for bankability.”
Thanks Anthony. And I didn’t know that, I’d always assumed the tier system referred to the quality of the hardware. To me it seems a recommendation site like SQ is best pitched at quality of hardware and installation. Leaving commercial viability to the market and installers, who as retailers have responsibilities already under consumer law to factor in collapse of suppliers.
To anyone putting solar on your roof or business. SunPower panels are brilliant. Don’t be swayed by this article. If your installer is offering SunPower Panels you are dealing with a great installer, because great panels attract great installers.
You miss the point. SolarQuotes has been saying for 15 years that Sunpower panels are the best panels (lots of) money can buy.
That is a separate point to the financial position of Maxeon.
We had SunPower panels installed on our home and we highly recommend them. We did heaps of research when we were deciding on getting solar and between our research and the advice of our local installer we chose SunPower Panels. Super happy with the install and the panels look amazing.
Question for Solar Quotes.
On your recommended panel chart you suggest “we consider all of these brands to be reputable and well supported in Australia”
SunPower surely tick both of these boxes? Undeniably reputable (every bit of research we did confirmed they are a great product), strong local support in Aus (our installer had direct contact with SunPower and not wholesaler).
So unless your metric has changed I cant see how you would not recommend SunPower?
Sunpower are great panels. But I’m worried about Maxeon’s ability to stay solvent and honour a 40 year warranty.
I thought the article is about the financial position of SunPower US? Maxeon a separate company.
Correct. IMO Sunpower US going bust makes Maxeon’s position even more precarious.
FYI – Maxeon’s supply agreement with SunPower Corp ended last year. Maxeon has not been shipping panels to SunPower for a while now.
As a retailer of Maxeon panels, we’re up against companies selling cheap panels like Leapton, Tongwei, Eging, ZNShine. Usually paired with a cheap inverter like SAJ, Growatt or Alpha battery. Unfortunately, this article is being used by those companies as a sales tool to steer people in the wrong direction.
Myself, I’ve been doing solar for over 13 years and have been hearing the competition say the same thing this whole time, “Don’t choose SunPower panels, they’re going bankrupt!”… Yet here we are, over a decade later, and Maxeon is still here and still committed to Australia.
Meanwhile, brands like LG, QCells, Kyocera, GCL, Hyundai, Leapton, Topsola, Ulica, Renesola (to name a few) have all come & gone from Australia.
(and all of those manufacturers have a better Altman-Z score, by the way)
So who knows which brands will stick around long-term?! What we do know is the quality of Maxeon panels and that they’re a safe bet.