04/26/17 update: Sungevity renames itself Solar Spectrum, will reach out to current customers for new warranty solution
08/22/17 update: Solar Spectrum merges with Horizon Solar Power under Sungevity brand
12/28/17 update: Sungevity solar leases leave customers with headaches after bankruptcy
Sungevity, a technology-driven solutions provider, offering exceptional service and choice to residential and commercial solar energy customers, announced that it has commenced voluntary Chapter 11 proceedings in U.S. Bankruptcy Court for the District of Delaware, in order to facilitate a financial and corporate restructuring to strengthen its balance sheet and recapitalize the company. During the Chapter 11 proceedings, it is expected that the company’s operations will continue uninterrupted.
In connection with the restructuring process, and under Section 363 of the Bankruptcy Code, the company has entered into an asset purchase agreement with a group of investors, led by Northern Pacific Group. Under the terms of the agreement, Northern Pacific Group will acquire substantially all of the company’s assets, including the equity interests in the European operations. While Sungevity’s European operations are part of the transaction, their day-to-day operations will not be impacted as a result of the Chapter 11 proceedings in the U.S. The purchase agreement sets the floor, or minimum acceptable bid, for an auction under the supervision of the court, which is designed to achieve the highest available offer. Sungevity expects to complete its financial restructuring and sale through an expedited process. A final sale approval hearing and closing of the sale is expected to take place by the end of April.
To provide capital for the company’s operations and to fund the auction and sale process, the group of investors has committed to provide the company with up to $20 million in financing. Subject to interim court approval, the financing will be immediately available to the company, to be used to fund the company’s day-to-day operations, and pay any expenses related to the Chapter 11 proceedings.
William Nettles, Sungevity’s newly appointed chief administration officer, said, “The agreement we have reached with the team led by Northern Pacific Group and its co-investors is a testament to their confidence in the future of Sungevity’s business. The actions we have announced today will allow Sungevity to emerge as a stronger and more competitive company. With its market-leading software platform and its high quality employees who provide unwavering commitment to customers and exceptional service, Sungevity intends to be at the forefront of the industry as solar continues on its growth trajectory in the years ahead.”
“The Board and its advisors reviewed a range of options and ultimately decided that a court-supervised sale represents the best path forward for our customers, suppliers, employees and business partners,” said Andrew Birch, Sungevity’s CEO. “During the sale process, our team will remain committed to serving our customers and delivering our industry leading service. Our ample on-hand inventory and uninterrupted installment contracts position us well to continue fulfilling our customers’ orders. Sungevity has long been a pioneer in the field of residential solar installation, and we believe that this represents a step forward for the company.”
The company has filed a number of customary pleadings with the court, seeking authorization to pay certain prepetition obligations, support its business operations, and transition them through the sale process. These include the payment of employee wages, taxes, insurance, critical vendors and utility providers, as well as the continuation of the company’s customer support programs. This will ensure that the company can continue to operate and serve its customers without interruption.
News item from Sungevity
Kelsey Misbrener says
Hi everyone, we spoke to one Sungevity solar lessee who found a way out of the lease through arbitration. Here is her story: https://www.solarpowerworldonline.com/2017/12/sungevity-solar-leases-bankruptcy-headaches/
Steve says
Does anyone know if they can legally act on a deactivation/ repossession notice based on payments I have not made for the last 8 months because they can’t or wont provide evidence of a company to back their warranty and performance guarantee outlined in their lease.
Nina says
Our system has been showing error messages and I’m almost sure one panel is broken. I’ve been trying to get someone to come out for a year. They keep giving me the run around. I threatened to stop payment. Your question is the exact question I have. I hope someone who knows will respond.
Nina says
P.S. they claim to be “Omnidian” now.
Luke Sutanto says
I contacted ABB @ 8004357365 regarding my inverter and I was told that it is under warranty for 7 years. Hope this helps.
Kelly Pickerel says
Hey everyone, looks like the Sungevity name is back? Solar Spectrum just merged with California’s Horizon Solar Power under the Sungevity brand name. The saga continues:
https://www.solarpowerworldonline.com/2017/08/sungevity-news-solar-spectrum-merges-horizon-solar-power-sungevity-brand/
Kondala rao says
I wanted to connect with anyone who is filling a criminal case against Sungevity. I payed $28000 to own the system and 20 years of warranty.
Did anyone got a chance to contact new company who owns Sungevity ?
Bimal Doshi says
I have paid $40K to own the system. I reached out to Solar Spectrum, they said they assumed obligation of only certain types of customers from Sungevity and I am not one of their customers, so they cannot help me with anything. SolarEdge is providing Support for System Monitoring. If something goes wrong with my system I do not who I can turn to for help.
I cannot even trade SRECS generated as I do not have NJ Certification number. Sungevity generally submits all the paperwork with NJ Clean Energy to get the Certifiction Number.BUt since they went bankrupt they did not file for their registration Number.
Chetan Bhatt says
Bimal, perhaps the state of NJ has a remedy for you.
I had contacted them 2 years ago to understand how SRECs work
I think they have outsourced certain aspects (for sure the inspection portion to honeywell)
My suggestion is for you to call
robert.graham@honeywell.com or 1(800) 950-1455 x 190.
He was very helpful, perhaps he will guide you to apply yourself.
Jean says
Kondala Rao – Are you still considering filing against Sungevity? Would like to hear from you!
Joe says
As for the 20 yr warranty (performance and parts) .. I just received a response from the new company stating they will cover 7 years from the install date. Amazing !! My system is 2 yrs old. I can’t believe the BK court let them screw all of us. I spent $46k on a 10KwH system.
Bimal Doshi says
Hello Joe,
Are you able to trade SRECS?
Jennifer says
I received an email stating that the owner of my solar agreement is a distinct legal entity and will not change as a result of the bankruptcy process.
The company is Omnidian, Inc.
Anyone else?
Amber brown says
The real question – do we have to pay the lease still??
mark says
this is a question i am asking myself. they owe me a $1000.00 refferal fee. i am sure im not going to see that.
Narayan Iyengar says
I installed Sungevity solar panels on my house in New jersey – I paid for them fully upfront. I am looking for some guidance on how to navigate the SREC market and sell SRECs myself – can anybody guide me?
Regarding the bankruptcy, it is really sad to see the stories of employees being stiffed.
THANKS
Bimal Doshi says
You can call one of the SREC traders and they will be able to help you out with the Process. Do you have NJ Certification Number. Without that you will not be able to trade SRECS.
Chetan Bhatt says
Narayan,
I see you posted in May so perhaps you have an answer already
I have looked into 4 traders:
njsrec.com
flettexchange.com
solsystems.com
srectrade.com
Of these, I found njsrec.com to be the easiest (no contracts or forms etc) and no comissions. The spot price offered by them is equal or slightly better ($1 difference) compared to others after you deduct comissions.
There are instructions on their website on how to sell your SRECS – essentially you transfer your SRECs to them on the GATs website (where you enter your solar production meter readings every month to generate the SRECs). I have used them twice – last 2 years without any hassel. The check comes within a week
bj says
We purchased our solar system from Sungevity since 12/2017. I am happy to have the ability to monitor our solar production and plan for energy usage. I have not been able to access our solar production since 4/27/207. I sent an email to the company this week, but no response yet. Anyone has better insight on this issue ? Thanks.
Nitro says
The company that was doing the monitoring for Sungevity has gone away via the bankruptcy. I assume that they are going to get another company to handle the monitoring but until then we are in the dark.
Bimal Doshi says
SolarEdge should be able to help you out to set up your account on their Monitoring Portal but only if you have SolarEdge Inverter installed.
Chetan Bhatt says
bj,
hopefully your inverter has a LED display – you can manually check
the performance on it. There is a reading titled “Total” – if it keeps changing then you can monitor how much it produces. But this is a pain when we are used to going to the website
The manufacturer of the inverter SMA America is helpful. They say there is a module you can buy that when hooked up via your internet router can offer monitoring.
https://www.youtube.com/watch?v=82OPRMElJIg
The red card in the video is the SWDM-US-10 which my inverter needs.
Veronica in New York says
I am worried I purchased a 20 year lease with Sungevity in June 2016 and now they filed for bankruptcy in March 2017. My inverter went down 2 months ago and I can’t get a repair team to come out to get me back on line. All the staff but a handfull are gone. Only emails are suggested to be sent to their customer service dept. but no response and no show. I will not pay another dime unless someone contacts me. I don’t have a good feeling about this. I think we are all screwed we just don’t know it yet. All lease contracts will be sold to the highest bidder and our monthly lease contracts void. We will be paying top dollar for the equipment on the roof and get crappy service and no maintenance.
Luke Sutanto says
I’m in CA and my inverter is ABB. I called ABB at 8004357365 and was told that the inverter is under warranty for 7 years. hope this helps.
I thought my inverter had issues but it was a false alarm.
Sophie says
I’m a new customer of Sungevity at New Jersey. I received a letter of “notice of motion for entry of order rejecting customer contract”, which seems that Sungevity would reject my contract due to its bankruptcy. I don’t know how to response this letter. Will the new company (Solar spectrum) take over the existing contract from Sungevity? Any help will be greatly appreciated.
Veronica says
I just went back to the website where they house the court documents for this case and found document #0317 that says they are withdrawing their contract rejection motion. Here is a link to the documents page: https://www.kccllc.net/sungevity/document/list/4503 I am meeting with my lawyer today about something else and plan to bring this up to him as well. I’ll let you know if I get any good info.
RK says
I am in the same boat as others. Pre-paid lease. Less than an year in a 20 year lease. Had a leak on my roof due to the install and when contacted, Sungevity mentioned my agreement is now owned by Kina’ole capital. Wondering if they divvied up the contracts / agreements across multiple companies – SunRun, Kina’Ole capital and now Solar Spectrum. Don’t know who to turn to lodge claim on my roof. Could’t even get the Kina’Ole capital number to go through. Any pointers appreciated.
Kelly Pickerel says
Hi everyone, Sungevity has renamed itself Solar Spectrum and the new leadership says they will reach out to customers with “new warranties” https://www.solarpowerworldonline.com/2017/04/sungevity-renames-solar-spectrum-will-reach-current-customers-new-warranty-solution/
Bimal Doshi says
Are you sure Sungevity has renamed itself Solar Spectrum. When I called Solar Spectrum and asked them if they renamed themselves as Solar Spectrum, they denied and said that they now have new owner and they have nothing to do with Sungevity,Inc.
Chetan Bhatt says
I also contacted Solar Spectrum for the monitoring website. Here is some info from them on Aug 9, 2017
———————————————-
Thank you for contacting Solar Spectrum Customer Service!
I do not see that you are a Solar Spectrum customer, and therefore we will be unable to assist you. Solar Spectrum purchased certain assets from Sungevity through their bankruptcy, but these included their platform and rights to their software data base.
Sungevity did go completely out of business and unfortunately at that time, they were unable to uphold any of their obligations to servicing or maintenance.
If you purchased your system from Sungevity out right, you will be responsible for all servicing and maintenance. With that being said, you should have manufacturer warranties in place to help in the event that you experience equipment failure or issues. If you have questions in regards to these warranties, please contact the manufacturers directly.
Catherine Larrick says
I received my letter today in the mail. I have a system that was installed in California and I paid upfront, but I am leasing from Sungevity. I have had some issues with the fact they never told me I would not receive the tax credits and basically I have a lean on my house if I ever decided to sell. I never received any follow up calls from them on how the system is working and they haven’t sent anyone to clean the solar panels. Yes I do receive the emails on the efficiency of the system, but feel that they need to check in once in a while. I really wish I had gone with a local company, but the Sierra Club recommended them, and I received a $1,000.00 discount on the system. I am wondering how this will effect the lease, as I really would like to truly own the system outright and take my chances if it had some problems. As someone else mentioned what are we supposed to do? Will they answer the phone?
Susan H says
I think I am in the same situation as you are. I pre purchased my power for the next 20 yrs, but Sungevity still owns the panels, they do not have a zero value until year 18. I am concerned about the ‘Rejecting Customer Contract’. Do you know if that means they will no longer have to maintain the system, change the inverters, or pay the difference for non performance? I have tried unsuccessfully several times to call them and the Debtors paralegal. I will start emailing this afternoon as well.
Stan S says
Same here. I interpreted the cancellation letter as a means of getting out from under the warranty and support costs while still enabling Atalya to capture the revenue stream from the monthly generation payments. Agreed on emailing and establishing a line of communication as more information would sure help make an informed decision on best next steps.
Kel M says
I am also in a 20 year agreement in a prepaid lease. Yesterday I wrote an email to Sungevity’s customer care email address and received a response within the hour. In it the representative mentioned that Sungevity no longer exists and that my contract was handed over to SunRun. I contacted SunRun and received notice that they are honoring the full extent of my contract I had with Sungevity. They had me in their system with all my info already. I am immensely relieved and recommend all customers to get info on who owns the contract now in order to get clarification on any warranty agreements etc. I must admit that I am somewhat upset that Sungevity and SunRun did not contact me at all concerning this change but it does appear that my needs have been met.
Nina says
Hi Kel, is Sunrun servicing your system?
Joe_M says
We purchased our system (LG Electronics LG300N1K-G4 and a SolarEdge Technologies SE 5000A-US (240V) inverter) outright in June 2016 (RI residents). Went online June 10th. I can’t say enough good about the permitting and installation process – literally a “no brainer” for us. We had a 1-month inverter down situation a couple of months after we went online, but the minimum annual generation guarantee was there as a backstop, and we exceeded that carefully crafted guarantee within nine months. When the inverter went down, the local repair person was very pleasant and knowledgable and did his best to get us back up-and-running quickly when our inverter was down.
We’ve had great production results ever since.
Our contract includes the 20 Year Energy Performance Guarantee and Limited Warranty. I wonder if the Performance Guarantee, Monitoring, System Warranty and Output Warranty will survive under BK and change of control. Does anybody out there know? Could these be considered claims upon Sungevity? Could the emerging entity be relieved of Sungevity’s previous contractual obligations to purchasers?
Surya Chadrika says
Sungevity Managment went aggressively promoting outright purchase option locking down customers under the 4 year initial lease with outright purchase agreement saying lease will be converted to outright purchase at the end of 4 year period. Now with in 4 years period Sungevity filed for the bankruptcy and there is no clear word from Sungevity / Bankruptcy Court how our purchase agreement is honored. I am interested in working with fellow customers having similar to my situation and would like to proceed with criminal case against the Sungevity Management if I don’t hear positive response. Please contact me if any one is interested.
La2 says
Our situation is akin to yours Joe_M. Purchased the LG’s in summer 2016. Received PTO in, I believe Sep. Inverter went down and after waiting for the part to arrive, a pleasant local repairman quickly fixed it (Sungevity sent a check for the energy usage.) Since, then it seems to be running alright, but with winter months and clouds I’ve been waiting for the offset of summer and clear skies to get a better picture of my bill. We’ve been trying to be as efficient as possible just for at least the first full year.
I’m wondering how it will play out…
Mark Hagerty says
I am not sure what products they sold but if it is SolarEdge or Enphase (inverter systems) the manufacturer will pay any certified installer a nominal fee to replace defective parts. For those ready to purchase from another of these large regional solar installers that have lost money every year of their existence, beware. Smaller local, well established installers are you best bet.
Doug says
In our neighborhood, Sungevity installed the SolarEdge inverter, which has performed very well so far. As far as buying local versus regional, I’m not sure about that. What’s the likelihood of any of these businesses being around for the 20-year guarantee on these installations? You have to assume they may not be. We made our purchasing decisions based on the fact that the installation would pay for itself well before the factory warranties expire, and that individual components could be serviced/replaced by other parties.
I’m generally in favor of buying locally, but in this case, Sungevity had very good customer ratings, so we went with them. Indeed, they and their subcontractor did an excellent job all through the process.
Doug says
I am a Sungevity customer who purchased a system outright for my home. I had them install a system in late July and paid in full on August 1, 2017.
Two weeks after Sungevity filed for bankruptcy, I received by certified mail, a preliminary notice of intent to file a mechanics lien against my home from Citadel Roofing and Solar, Vacaville, Ca, which served as a subcontractor to Sungevity to do the actual work. As you might know, this is actually allowed in law, but in California, the subcontractor must file such a lien within 60 to 90 days after the work is completed. So the lien is invalid in my case, and in fact, in many cases, contractors file too late to file valid mechanics liens. However, contractors are known to file anyway, hoping the customer is ignorant of the law, as there are no legal penalties for them doing so, so long as they voluntarily remove the invalid lien upon demand.
For any of you folks impacted by this, be sure to respond to the notice with a 10-day demand letter that the subcontractor remove the lien. See https://saclaw.org/wp-content/uploads/sbs-petition-for-release-of-mechanics-lien.pdf
Tracy, CA 95377
Sal says
From your link,
“Contractors and subcontractors can record mechanics’ liens against a piece of real property for work they do on that property. Although the lien automatically becomes invalid if the claimant does not foreclose within 90 days of recording, the lien will still appear on the title until it is released in writing or by court order.”
I’m reading within 90 days of recording, not within 90 days of doing the work, which would make sense if the lien was due to lack of payment, possibly years within the payment agreement. Is there some other document that says “recording must be within 90 days of doing the work?”
More mysterious to me though in your specific case is why they would put a lien on your home when you paid it outright. If you paid Sungevity directly and Sungevity didnt’ pay them, they must realize the court will send them to Sungevity since you met your financial obligation. Do you know why?
Thanks
Linda Coutinho says
Very concerned we went live in December we have been very happy with our production. I am very worried about iur lease and the future of Sungevity. I have talked to so many acquaintances to go Solar with Sungevity. We were promised $1000. for signing on with Sungevity and the friends that referred us were suppose to get a $1000. referral check that we haven’t received. Help Please!
Joyce Higashi says
Almost put an offer in on a home yesterday (3-25-17). This home has leased solar with Sungevity. Nothing was said to me regarding the filing of BK by this solar company by the listing agent, which begs the question about what he knows. In business, this action would affect both creditors and debtors, which means full disclosure by the seller. Buyer Beware! The only thing I received from the listing agent was the lease transfer terms for the solar from Sungevity. Sungevity has the nerve to require a 700 plus credit score from transferees. Another related article outlines how a number of Sungevity employees recently were paid less than the amount they earned, and that their payroll checks bounced! Not sure why or how this company got themselves in the mess they are in, but I do believe they need to rethink what they ask their potential customers to do when they are guilty of not paying their own debt.
Matt Devlin says
I have been installing for Sungevity since 2010 in Massachusetts please reach out to me direct if you have a Sungevity system in Massachusetts installed by Devlin I can get you the information you are looking for.
We are currently installing new projects and business is moving alone as normal.
JACK RAMSEY says
I also have been installing for Sungevity for many years in California, and as Matt stated above, business is back to moving in a normal fashion. New projects being installed and all service work backed 100%.
Jack
Sara Neuville says
Do you know if anyone still works at Sungevity? There was some damage done to our house in the instillation and had to repair our home. We were promised a reimbursement check but I can’t get a hold of anyone there. Please let me know if you have any insight. Thank you!
Mat says
Matt/Jack,
We also installed for Sungevity here in San Francisco. We are also installing new projects and the summer season in approaching fast. Glad to see everyone is doing well.
Tobey says
Any installers or people supporting South New Jersey??
Allen Lao says
Hi Jack/Matt,
I prepaid my system for 20 yrs. What does that mean to me for the bankruptcy? Do you know if the sale will affect the contract that i sign?
Andrew Sutton says
Hi Matt,
I have a Sungevity System in MA, specifically Norfolk, MA. Just recently learned about this bankruptcy notice via a letter in the mail. I would love to learn more about this and where I can get that info. Looking to put the house on the market this Spring/Summer and need to know how this impacts me. We are leasing the system currently.
amy says
hi, do you anyone in sungevity installer California ?
don’t know what to do with the lease now that I am still paying for and my system does not even work as I got big bill from PG &E.
any help will be greatly appreciated.
amrita.
Mat says
We were a Sungevity Installer in San Francisco. We saw the writing on the wall about a year ago. It seems like all the “BIG” solar companies are getting in trouble and local companies are continuing to prosper.
Dinesh Gupta says
Hello Matt Devlin,
Can you please provide your contact details.
Thanks,
Dinesh
David B. Madoff says
Matt Devlin — Could you call me about the Sungevity system a client of mine has. We are trying to find out who owns the contract now that Sungevity sold it prior to its bankruptcy. Thanks.
Kelli White says
I am in Massachussettes my system as installed in 2012 . It is a prepaid lease and non functioning at the moment. I contacted Omnidian who states they are managing lease contracts and they had someone call me from Andover who is supposed to come out next week to check out the system. But the real issue is National Grid told me that the solar was not interconnected properly by the solar company so the credits I thought I was getting have never been there. How do I find out about who filed for the solar credits? And how do I get them back? My email address is kelliwhite56@yahoo.com if you could email me Matt Devlin.
Joe Heinzmann says
I am a prepaid lease customer also and received my notice yesterday-System has been working well. How do we get clarity on how this affects my/our investment? Concerns answered etc..
Thanks
Joe
Cindy Franks says
We also have the 20 year pre-paid lease. It is hard to believe the company will be better for this. There seems to be a huge question mark as to who will maintain the system we already paid for in the years to come. Very disappointing. Count us in for that lawyer.
Kelly Pickerel says
To everyone commenting about Sungevity, a final sale approval hearing and closing of the sale could take place by the end of April, so maybe we’ll know more then.
Paula Kelley says
I received in the mail today a a) Notice of Proposed Sale, Bidding Procedures, Auction and Sale Hearing and b) Notice of Chapter 11 Bankruptcy Case. We are very happy 4yr customers of Sungevity Solar on a 20 year lease program. Do I need to get a lawyer (that i can not afford) to interpret all this and what I need to do to protect my contract with Sungevity? So many people in MA have Sungevity systems and we need more information on how to proect ourselves. HELP!
Charles T says
What does this mean for Sungevity’s customers? We purchased and financed a solar system just last July. Now we have 20 years of payments ahead of us. Who will maintain the solar panels, if needed? Their maintenance was one of the reasons we chose Sungevity.
Luke says
Deeply sorry to learn of this. I’m a long fan of Sungevity, and have had their beautiful system proudly and productively on my for five years. It has performed flawlessly, I have prevented over 14 Tons of GHG emissions, I have enrolled half a dozen neighbors to install Sungevity, and all of us have enjoyed Sungevity’s fantastic product and customer service. I look forward to Sungevity getting this transition behind them, and continuing to provide their incredible services to more customers.
Edward Acuna says
We purchased a solar system from Sungevity approx. 6-8 months ago. We paid for the entire system up front. Is there anything we need to be aware of considering chapter 11 filing?
STACY KASKI says
HOW IS THIS GOING TO EEFECT YOUR CUSTOMERS?
cliff rez says
I am a new customer. I see lots of questions about how Sungevity will continue to serve us but no answers
Ron Brittain says
http://www.kccllc.net/sungevity