As seen in various media reports recently, Renova Energy (Renova), the long-established leading solar energy company in Greater Palm Springs and the Tucson, Arizona region, has recently faced significant challenges due to the operational failures and financial shortfalls of its financing partner and equipment (solar panels and energy storage batteries) supplier, SunPower.
Despite these setbacks, Renova is actively working to address these issues and resume normal operations.
GPS Business Insider spoke with Renova CEO Vincent Battaglia to get the full story to share with our readers.
What Happened? SunPower’s Shortcomings
The stock price of SunPower Corp., which is traded on the NASDAQ exchange, plunged to an all-time low this week after the solar company told Renova and other affiliated dealers it would no longer support new installations and was halting shipments of equipment.
The shares slumped more than 50% to $1.01 at the close of business in New York on Wednesday, July 24. The company has lost more than two-thirds of its market value this year as it contends with a wide range of internal issues.
The notice comes after SunPower said in April it needed to restate almost two years of financial results. It also replaced its chief executive officer and chief operating officer and defaulted on a credit agreement in late 2023 after an earlier earnings revision.
French energy giant TotalEnergies SE owns a minority stake in SunPower and is rumored to be planning to buy the company before it must file for bankruptcy protection.
SunPower’s Crisis Impacts Renova
In the fall of 2022, SunPower became a partner and minor investor in Renova through what they refer to as the SunPower Dealer Accelerator Program. This program provided several of the country’s fastest-growing solar dealers, like Renova, with capital financing and business strategy support to accelerate growth to meet the increasing homeowner demand for rooftop solar nationwide.
Through the SunPower program, Renova was able to exclusively sell SunPower’s solar systems and battery storage solutions in its market areas in California and Arizona and fund the considerable equipment costs necessary to allow customers to lease the systems as an alternative to paying cash for them.
With consumer demand for solar at an all-time high, Renova’s partnership with SunPower allowed them to capture this demand effectively and continue to expand their business rapidly. However, SunPower has recently failed to meet its financial obligations under this contract, particularly in providing the agreed-upon ongoing payments to Renova based on the systems they install.
“As with any high-growth business, especially one that is engaged in leasing the kind of equipment necessary for rooftop solar systems and the large workforce required to install and serve them, we needed a financial partner to make it work,” says Battaglia. “In other words, even though many local and regional rooftop solar businesses were very successful, we simply needed the additional financing capacity to grow. In the case of SunPower, we had a financing partner that had their own line of solar panels and batteries. It was a perfect fit until it wasn’t. Things were going extremely well until SunPower ran their business into the ground for reasons not necessarily related to the rooftop solar market.”
Battaglia further explained, “The decline began when SunPower failed to make the contractually obligated payments, offsetting or crediting our account instead – something not in the agreement. This left us in an untenable financial position as we would have to support the lease side of the business with our own cash.”
Instead of waiting and hoping that SunPower’s situation will be resolved, Renova is now in the process of transitioning customer leases they generated from SunPower to new financing partners as soon as possible. Battaglia highlighted, “We are in discussions with potential financial partners to replace SunPower’s position in what is an otherwise successful business model with the liquidity to stabilize our operations, pay outstanding bills, and bring back our workforce. This will enable us to complete pending installations and service calls, which is crucial for maintaining customer trust and satisfaction.”
A Resilient Company Adapting and Overcoming Financial Strains
Founded in 2006 by Battaglia, Renova has grown rapidly in Greater Palm Springs and surrounding areas as the demand for clean, renewable energy and savings from solar and battery storage has accelerated.
The company has installed rooftop solar systems and battery storage products in more than 12,000 homes and businesses with more than 300 local employees and a fleet of more than 100 vehicles, Renova was the first company in the nation to be accredited by the North American Board of Energy Practitioners (NABCEP) and remains one of only 11 in the nation. In the most recent edition of PV World magazine, Renova was cited in the publication’s Top Solar Contractors List as the #2 ranked company in California in 2024, with rooftop solar and battery storage system installations totaling 22,320.15 kilowatts in 2023 and 207,921.60 kilowatts since inception. Nationally, Renova ranked #133 out of 5,000-plus companies.
Despite the recent financial hurdles, the company remains firmly committed to its mission. Battaglia emphasized, “We’re advising our customers who lease their systems that they must continue making their monthly payments because their systems are operating and producing energy in line with our agreements. Warranties remain intact, and we are working hard to address the service needs of our customers.”
What Renova Customers Can Expect
Battaglia stated emphatically that Renova is dedicated to ensuring that all customer concerns are addressed as promptly and effectively as possible. Until the recent disruption, SunPower and Renova shared the provision of service to systems when there may have been malfunctions and/or questions from customers. In many cases, SunPower can fix system challenges remotely by computer; in other situations, when needed, Renova would send their technicians to customers’ homes. Battaglia says that right now, customers can expect the following in terms of ongoing operations and service needs:
- Continued Payments and Warranties: Customers are advised to continue making their lease payments as usual in accordance with their agreements. “All existing warranties remain intact, ensuring that customers are protected for the duration of their warranty period,” says Battaglia.
- Service and Maintenance: Renova will resume its full level of service and maintenance operations as soon as possible. As has always been the case, customers are encouraged to contact SunPower for immediate service needs. The SunPower customer service phone number is 800-786-7693. Renova has been proactive in communicating with customers, providing clear instructions and reassurance during this temporary pause.
- Pending Installations: For customers with pending installations, Renova is prioritizing the completion of these projects once operations resume. Battaglia explained, “We have a prioritized list going that identifies all open jobs and will move forward immediately after we are able to bring back our workforce to hit the streets. Our goal is to minimize disruption and ensure that all projects are re-engaged or started.”
Supporting Employees and the Community
Renova is focused on its customers and on supporting its employees during this challenging period. The company has always valued its workforce, offering comprehensive training and development programs to ensure that employees are well-equipped to meet the demands of the evolving solar industry.
Highly trained Renova technicians have installed more than 12,000 rooftop solar systems in Greater Palm Springs and Arizona
Battaglia remarked, “We are committed to bringing back our workforce as soon as possible. Our employees are the backbone of our company, and their expertise and dedication are crucial to our success. Having to furlough Renovians, as we refer to our employees, while we work through this temporary but major issue has been one of the most difficult and emotional challenges I have dealt with in my life.”
Utilities: The Main Challenge to All
Battaglia says that Renova has always viewed utilities as the main competitor to rooftop solar companies. Traditional utility companies operate as regional monopolies, with centralized electricity distribution models that are inefficient and increasingly costly. These companies have historically raised electricity rates significantly, and this trend is expected to continue, making the case for decentralized rooftop solar solutions even more compelling.
“Utilities are our mutual enemy,” Battaglia emphasized. “Their rates continue to rise drastically, and their centralized model is outdated and inefficient. By contrast, producing your own electricity with solar is more efficient, much more cost-effective, and environmentally friendly.”
Clear Communication and Customer Assurance
Effective communication has been a key focus for Renova during this period. The company has been addressing customer inquiries through direct one-on-one interactions, ensuring that each customer’s specific concerns are heard and addressed. This includes clarifying the status of warranties, advising on continued payments, and providing updates on the expected timeline for resuming normal operations.
“We understand the uncertainty our customers are facing. Our goal is to provide clear, consistent communication and reassure them that we are committed to resolving these issues swiftly and efficiently,” said Battaglia.
Looking Forward
Renova’s commitment to innovation and customer satisfaction remains steadfast. The company is poised to overcome its current challenges through strategic partnerships, financial restructuring, and a dedicated focus on quality and service. As Renova navigates this transition, its proactive steps toward recovery aim to benefit all stakeholders involved, from employees to customers and the broader community.
For now, Renova encourages customers to stay informed through their official channels and to reach out with any specific concerns. The company remains optimistic about its future and is dedicated to continuing its mission of providing sustainable solar energy solutions.
