Lights Out! SunPower (SPWR) Plummets Almost 30% After Pausing Some Operations

The PRISM New Energy laggard SunPower Corporation (SPWR) saw its shares plunge after announcing it is suspending certain operations, including halting lease and power purchase agreements from its sales platform and stopping new product shipments. SunPower stated it would cease signing new agreements and could not support installation services for shipments already in transit or delivered.

Solar power and storage solution providers have been grappling with rising inventory levels amid a weak rooftop solar market.

Metering reforms in California, the largest solar market in the U.S., have further reduced demand, lowering the tariffs residential customers receive from the grid.

SunPower has faced several difficult quarters, including receiving a subpoena from the U.S. Securities and Exchange Commission in February regarding its accounting practices.

The company’s CEO also departed in the same month, and its auditor, Ernst & Young, resigned in June.

In April, SunPower announced plans to cut its workforce and eliminate most of its direct sales channels as part of a restructuring plan to reduce costs.