SunPower, a U.S.-based residential solar technology and energy services provider, announced that it has entered into an asset purchase agreement (APA) with Complete Solaria. Under this agreement, Complete Solaria will act as the Stalking Horse Buyer for the assets related to SunPower’s Blue Raven Solar business, New Homes business, and non-installing Dealer network.

Alongside this agreement, SunPower and several subsidiaries have filed for voluntary relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. This process will allow other interested parties to submit competing bids for the company’s assets.

According to the APA, Complete Solaria will acquire the specified assets and assume certain liabilities for $45 million in cash, pending court approval. SunPower has requested that the court approve the transaction by mid to late September. The company also plans to continue the sale process for its remaining assets under Section 363 of the U.S. Bankruptcy Code.

“For nearly 40 years, SunPower has worked to make solar energy more accessible to Americans, driven by our mission to change the way our world is powered. We are confident that Complete Solaria’s CEO, T.J. Rodgers, will carry forward our vision to shape the future of residential solar as a pioneer in this space,” said Tom Werner, Executive Chairman at SunPower.

T.J. Rodgers, CEO of Complete Solaria, highlighted the growing cost-efficiency of solar energy, noting that utility generation costs for solar are now $0.024 /kWh, compared to $0.036/ kWh for coal, the cheapest fossil fuel source.

“The move to zero-emission solar energy is accelerating, along with distributed solar power generation, as homeowners can now generate their own power for 8-10 cents per kWh, below the price of utility power in most states,” said Rodgers.

SunPower has requested court approval to access prepetition cash collateral to fund its business operations and administrative expenses. The company has filed various customary motions seeking authorization to meet its obligations to its employees and expects to receive approval for these requests.

Following the expedited sale process, SunPower plans to liquidate any remaining assets and undergo an orderly and efficient wind-down of its operations.

SunPower posted a fourth-quarter revenue of $356.9 million, down 28% from $498 million last year, hurt by lower customer additions.

In February 2022, TotalEnergies signed a definitive agreement to acquire SunPower’s commercial and industrial solutions business for $250 million, including $60 million of earn-out.