Renova Energy temporarily stopping California and Arizona business operations after partial investor defaults

Renova Energy will be temporarily stopping business operations in California and Arizona after issues with a partial investor, the company announced on Friday.

News Channel 3 obtained a letter from Renova to its customers.

"With the current default condition of SunPower Corporation, a partial investor in Renova Energy Corporation, I am forced to temporarily stop Renova's California and Arizona business operations, including our installation, service, and roofing organizations," reads the letter, written by Vincent J. Battaglia, CEO and Founder of Renova Energy Corporation.

Multiple outlets reported on Thursday that SunPower Corp told dealers that it no longer supported new installations and was halting shipments. The stock plunged to below $1 on Friday.

News Channel 3 has received several tips that employees have been told to stop at the office to pick up their final paycheck today.

Battaglia said he asked his employees to take a temporary furlough while he works to establish new relationships with other solar lending providers.

"I used about a half a million dollars of my own money, and I used that to make payroll today, and then had to make the decision, as I believe good business owners should that if you can't make payroll the following week, well, then you simply have to ask everyone to take a temporary layoff," Battaglia told News Channel 3.

Renova hopes to finalize at least two new partnerships by Monday and plans to work with energy consultants in the coming weeks. 

Renova's CEO is also telling customers that have questions about their SunPower systems to call 1-800-SunPower.

Read the Full Letter:

Hello Loyal Renova Customers,

I have seen Renova through some extremely challenging times these past 18 years as the planet transitions towards free, independent, and clean energy, and our march forward hasn't stopped but has just gotten a bit tougher.

Over the past several years, some of you have noticed and reached out to me regarding longer wait times, communication and technical difficulties, and confusion related to our partnership with SunPower. It was not a healthy path that we were going down with them, and your concern, both from the outside and the inside made me adjust our processes to accommodate their inadequacies as a solar and battery technology and finance provider.

Well, that dam broke today. With the current default condition of SunPower Corporation, a partial investor in Renova Energy Corporation, I am forced to temporarily stop Renova's California and Arizona business operations, including our installation, service, and roofing organizations.

This was more sudden than I could have ever expected, and I needed to get this message out to everyone affiliated with our great company as quickly as possible.

This temporary condition will be remedied over the next few weeks, and you can count on hearing from us. Once our partner/debtors take proper financial steps, I feel confident that we can properly serve our desert communities by continuing to build and service tens of thousands more solar and battery microgrids.

Please be patient with me in this short-term process, and please feel free to reach out to me at vbattaglia@renovaenergy.com.

Stay with News Channel 3 for continuing updates.