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Legal Rights 9 min readMarch 2026

SunPower System Not Working? Your Legal Options and Rights Explained

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Is your SunPower solar system underperforming or completely dead? Learn about your legal rights, the impact of the 2024 bankruptcy, and how the FTC Holder Rule can help you get relief.

The SunPower Crisis: Why Your System Isn't Working

For years, SunPower was considered the gold standard of the solar industry, promising high-efficiency panels and a comprehensive 25-year 'Complete Confidence' warranty. However, the company's 2024 Chapter 11 bankruptcy filing has left hundreds of thousands of homeowners in a precarious position. If your system has stopped producing power, your monitoring app has gone dark, or you have visible damage that isn't being addressed, you aren't just dealing with a technical failure—you are facing a massive corporate breakdown. Many homeowners report waiting months for service calls that never happen, while their monthly loan or lease payments continue to drain their bank accounts for electricity they aren't even receiving.

Understanding the 2024 SunPower Bankruptcy Impact

On August 5, 2024, SunPower Corporation officially filed for bankruptcy, a move that sent shockwaves through the solar market. While a portion of the company's assets and the brand name were sold to Complete Solar in September 2024, the transition has been anything but smooth for existing customers. The 'new' SunPower may not be legally obligated to honor the labor warranties or performance guarantees of the 'old' SunPower, depending on the specific terms of the asset sale and your original contract. This leaves a 'warranty gap' where homeowners are told their panels are covered by the manufacturer (like Maxeon), but no one is willing to pay for the expensive labor required to actually replace them.

Who is Responsible for Your System Now?

Determining who to call when your SunPower system fails depends heavily on how you acquired it. If you purchased your system through an independent authorized dealer, that dealer may still be in business and responsible for local service, though they are often struggling to get reimbursed by the bankrupt parent company. If you have a lease or Power Purchase Agreement (PPA), your contract might have been bundled into a portfolio managed by SunStrong or another financial entity. These companies often prioritize their right to collect your monthly payment over their obligation to keep the hardware functional, creating a legal conflict that homeowners can exploit to seek contract termination.

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