BURLINGTON, Vt. (WCAX) – Could the future of one of Vermont’s largest solar power companies be going dark? iSun, a publicly traded company, filed for bankruptcy last week, leading to concerns from some about the health of the industry.
Chapter 11 bankruptcy documents submitted to a Delaware judge last week show iSun, the parent company of SunCommon since 2021, finished last year in the red, losing over $19 million, losing $250,000 weekly, and maintaining millions of dollars in debt.
“This process will enable us to restructure our finances and operations to ensure our long-term sustainability and competitiveness,” iSun CEO Jeff Peck said in a statement,
We don’t know how exactly iSun landed in financial dire straights but those in the industry say there are many complexities. “Residential solar is all about financing at a certain point and so the increased rates that are across the board for homes cars or solar arrays are also challenging the market,” said Rep. Caleb Elder, D- Starksboro, who is also a solar consultant. He says financing home solar arrays, which can run about $20,000, can be tricky. Add to that steep prices on wiring components and tariffs on Chinese steel.
Some also point the finger at decreases in the state’s net-metering rate — a program giving homeowners a credit on their electric bill for putting power back on the grid, though there is a disagreement to what extent. Data from the Vermont Department of Public Service shows Vermonters continuing to install home solar and participate in the net metering program.
Jarred Cobb with Catamount Solar, one of iSun’s competitors, says the overall market for residential solar is still strong. “If your company is structured in a way where it can’t support ups and downs in the market, then you can be affected, and I think that’s what we’re seeing now. Larger companies focused on growth and profitability and not so much sustainability — it can come back to bite you,” he said.
We don’t know what will happen to the hundreds of employees at iSun and SunCommon while they are in bankruptcy protection, but they say they want to avoid disruptions to employees, customers, and vendors.