SunPower reportedly ceases lease, PPA offerings

US residential solar company SunPower (NASDAQ:SPWR), which has been striving to cut costs and simplify its business model to tackle current industry headwinds, has suspended various services within its offering, including new lease and power purchase agreement (PPA) sales as well as new shipments and project installations of these financing options.

The measure is in force as of July 17, according to a letter sent by the company to dealers that is circulating the media and was also included in a flash note from ROTH Capital.

“SunPower will no longer be supporting new Lease and PPA sales nor new project installations of these financing options. […] As a result, we will deactivate Lease and PPA offerings from EDDiE, cease countersigning new agreements, and all active unsigned proposals will expire. Additionally, all new shipments and project installations will be halted,” the letter reads.

The solar firm says further that it continues to explore alternative providers to help transfer sold projects and intends to give more details on the matter as soon as possible.

In April, SunPower announced plans to cut costs and simplify its business model through the lay-off of about 1,000 employees and the closure of certain direct sales divisions. This was followed by an announcement that the company has drawn upon the second tranche of its second lien term loan secured earlier this year from its majority owner Sol Holding LLC.

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