Ryan Randazzo

The Republic | azcentral.com

Solar financing company SunEdison is facing a potential bankruptcy

More than 750 Arizonans lease solar panels owned by the company

It's unknown how many of those customers will receive service if the company seeks bankruptcy protection

More than 750 Arizonans who have rooftop solar panels are at risk if Missouri-based SunEdison Inc. files bankruptcy as predicted, which would leave them locked into leases with an insolvent company.

SunEdison does not install rooftop solar, but the company owns the systems that 735 Arizona Public Service Co. customers lease, and 20 leased by Salt River Project customers. The projects have been installed by a variety of companies.

A SunEdison subsidiary on Tuesday predicted that SunEdison would file bankruptcy following a series of troubles related to its liquidity.

"There is a substantial risk that SunEdison will soon seek bankruptcy protection," the subsidiary, Terraform Global Inc., said in a regulatory filing.

The day before, SunEdison itself reported that the U.S. Department of Justice subpoenaed the company and the Securities and Exchange Commission inquired about its failed deal with Vivint Solar.

The agencies want information regarding the deal, a former employee who is alleged to have committed wrongdoing in negotiations, the company audit committee, transactions with TerraForm, and other matters.

SunEdison shares closed Friday at 43 cents each, down from more than $33 in the past year.

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APS and SRP officials could not comment on what would happen to the solar customers if SunEdison files bankruptcy. The utilities are not involved with the leases customers enter into with solar companies other than approving their connection to the power grid.

SunEdison officials could not be reached late Friday.

The solar panels owned by SunEdison would continue to generate power for customers if the company falls into bankruptcy, but such an action would complicate getting them serviced or repaired under warranty.

If the company filed for a Chapter 11 reorganization, another owner could take over the projects owned by SunEdison, but it's unclear how that would affect customers.

Also unknown is the number of solar projects on customer homes the company has underway in Arizona and elsewhere that might not be completed amid a bankruptcy.

One installer that lists SunEdison as a partner on its website, Sun Valley Solar Solutions of Chandler, said it will continue to work with customers.

"We are still taking care of customers even through this process," Sun Valley CEO Russ Patzer said. "It's not like, 'Sorry, you are out.' "