The Ups and Downs of Solar Giant Sungevity

Founded in 2007 by Danny Kennedy, Andrew Birch, and Alec Guettel, Sungevity was a solar company initially based in Oakland, California. Sungevity set itself apart in the solar industry by developing and utilizing a proprietary remote solar design tool, iQuote, which could provide home and business owners with price quotes and system design options without having to send an employee to visit the home. 

Investors and acquisition 

By 2014, the company had raised $70 million in equity from investors, and in 2016, Sungevity was acquired by private equity firm Easterly Acquisition. At that time, Sungevity was the fifth-largest U.S. rooftop solar company in terms of market share.

Bankruptcy 

At the beginning of 2017, the company laid off senior and mid-level managers, as well as the majority of its staff, without notice. Shortly after, Sungevity filed for a voluntary Chapter 11 bankruptcy, which is intended primarily for the reorganization of businesses with heavy debt burdens in an effort to become profitable. 

The remainder of the company was sold to private equity firm Northern Pacific Group for $50 million, and the firm’s newly created company, Solar Spectrum, acquired Sungevity’s infrastructure, technology, installer network, supplier warranties, and certain agreements.

Merger

In August 2017, Northern Pacific Group acquired a majority stake in Southern California solar installer Horizon Solar Power with a plan to eventually have both companies (Solar Spectrum and Horizon Solar Power) operating as separate legal entities under the umbrella of the Sungevity brand. 

The merger of Solar Spectrum and Horizon Solar Power resulted in the company becoming the second-largest provider of residential solar systems in California and the fourth-largest in the country.

Rebrand 

In April 2018, the Sungevity rebrand was made official, and Solar Spectrum and Horizon Solar Power began working together under the Sungevity brand to enhance growth. 

Although some have been skeptical about the company’s choice to resurrect the Sungevity name after the bankruptcy, there’s no arguing that Sungevity was one of the most recognizable brands in the solar industry. 

Covid-19 and acquisition 

Sungevity laid off 400 people in March 2020 due to the Covid-19 pandemic. In November 2020, Sungevity and its sister companies — Horizon Solar Power and Solar Spectrum — ceased operations and were acquired by Pineapple Energy, a solar company that serves California and Hawaii. 

While marketing is active under the Sungevity brand and website, the company is owned by Pineapple Energy. As such, if Sungevity installed your solar system, contact Pineapple Energy with concerns like warranty fulfillment. Customers who leased systems with Sungevity were bought out by a different leasing company: Sunrun, Omnidian, or Spruce Power. 

Check out our Pineapple Energy page for more information.