Residential solar player Lumio files for bankruptcy

Correction: This article originally incorrectly included Our World Energy in Lumio’s roster of companies. That has been removed. Our World Energy is not a part of Lumio. Our World Energy has never been a part of Lumio. Our World Energy is not involved in or impacted by Lumio’s bankruptcy.

Utah-based residential solar company Lumio filed for Chapter 11 in the U.S. Bankruptcy Court in Delaware this week, another of 2024’s residential solar business casualties. Unlike SunPower’s bankruptcy in early August, Lumio plans to remain open during the sales process thanks to $8 million of debtor-in-possession (DIP) financing to support operations as the sale process.

“Today’s announcement marks an important step forward for Lumio and a continuation of our deliberate efforts to position the business with the strategic, operational, and financial foundation to operate at the forefront of the solar industry as it enters its recovery phase,” said Andrew Walton, CEO at Lumio. “With enhanced financial stability and the support of new ownership following the completion of our sale process, we will be well-positioned to capitalize on growth opportunities and better serve our customers through every step of their switch to solar.”

Prior to its Chapter 11 filing, Lumio entered into a stalking horse asset purchase agreement its primary senior secured lender White Oak Global Advisors. White Oak proposes to acquire substantially all of the Lumio’s assets for $100 million in the form of a credit bid (White Oak will use debt that it’s owed toward the purchase). Another bidder could also top this offer.

Lumio execs anticipate completing the sale process in less than two months. If selected as the successful bidder, White Oak also intends to offer significant equity ownership to the Company’s employees.

Lumio overview

Lumio launched in December 2020, a combination of four established residential solar providers and a software company: Atlantic Key Energy, DECA, LIFT Energy, and Smart Energy Today. We wrote in June 2021 that “current market trends support the timeliness of Lumio’s approach.”

While reports indicate conditions are growing more challenging for the largest installers, smaller regional providers are rising and thriving. Interest and investment in home improvement is reaching record highs in 2021.

As of its formal launch, Lumio already has a 12-month run rate of more than $1 billion in gross sales. With more than 3,500 team members across 37 states, Lumio continues to identify top industry companies and individual performers to join their growing roster of partners and key employees.

Folks don’t just call it the solar coaster because it’s catchy.

Now, Lumio will “continue its prepetition sale process through a Court-supervised process designed to elicit the highest or otherwise best bid for its assets in order to maximize value for all stakeholders. A sale transaction will provide certainty regarding the continuation of the business for employees, customers, and trade creditors whose claims will be assumed in the sale.”