A giant California solar company has fallen amidst widespread disruption brought about by state regulatory policies that disproportionately favor monopoly utilities like PG&E at the expense of solar businesses, consumers and the environment. 

SunPower was a well-known clean energy pioneer born directly out of California’s historic role inventing, incubating, and developing solar energy for the world. While that world stage brought stiff competition for American companies, particularly manufacturers, and a number of other factors contributed to SunPower’s challenges, California’s devastating policy changes played an unquestionably large role in destabilizing the situation today. 

SunPower is the largest solar company to fall in the past year, but it is far from the only casualty. Dozens of companies have gone bankrupt or left California since the start of the “net billing tariff”, also known as “NEM 3”, in April 2023. In total, 17,000 jobs have been lost, sales are down 60%, and 81% of California solar companies remain concerned about their ability to stay in business. California solar is in a state of crisis at a time when it should be racing forward.   

It took California thirteen years to build its first million solar roofs, five years to build its second million, and one year to cut solar installations down to a ten-year low. California regulators seem set on continuing to damage the solar industry, stripping solar contractors of their ability to install batteries and adopting high fixed charges that hurt solar users – 62% of which are low- or middle-class and 58% of which are people of color. 

All this in the name of a utility lie about a so-called “solar cost-shift” which scapegoats California families and businesses who embrace energy independence and clean energy. The truth is, PG&E, Southern California Edison and San Diego Gas & Electric allow their spending to get out of control, ballooning their profits, and driving up electric rates. 

Rooftop solar and storage is the solution to raising rates. Solar reduces the need to build expensive power lines while creating competition and choice for consumers. This is especially important as the state electrifies. California regulators need to stop blaming consumers for their own failures in reining in out of control utility spending and start encouraging investments in local solar and energy storage once again. 

Despite the great loss of SunPower, California is still a place of sunshine and innovation. With the right leadership, the state can get back on track as a clean energy leader. 

CALSSA encourages solar dealers affiliated with SunPower to reach out to the Association for assistance. We encourage SunPower customers with concerns to call SunPower at 1-800-SUNPOWER, or your local SunPower dealer. If consumers still need assistance, CALSSA has a consumer assistance hotline, which you can find here.

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