New Energy
SunPower's Demise Underscores Industry Primed for Casualties
Slim margins and high interest rates squeeze residential solar companies in the US, forcing executives to focus on cash, not growth.
Even in the best of times, margins for rooftop solar companies tend to be slim.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
The US residential-solar industry is under serious threat — a vulnerability borne out this week by the bankruptcy of SunPower Corp., one of the sector's most venerable names.
The California company had its own series of financial missteps. But those stumbles happened against the background of high interest rates, which make panels less affordable for homeowners, and a major subsidy cut in its home state — the country’s biggest solar market. The change has significantly slowed demand and crimped profits for rooftop firms.