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Sep 30, 2023
Sunrun Q3 2023 Earnings Report
Sunrun's focus sharpened on cash generation, transitioning to a storage-first company, and lowering full-year growth guidance for Solar Capacity Installed.
Key Takeaways
Sunrun reported Q3 2023 financial results, highlighting a focus on cash generation and a transition to a storage-first company. Storage attachment rates surged to 33%, and the company installed 258.2 Megawatts of Solar Energy Capacity. Full-year growth guidance for Solar Capacity Installed was lowered.
Storage attachment rates reached over 33% in Q3, nearly double the rate in Q2.
Launched a premium storage-add-on offering in California.
Completed a record-setting $715 million securitization of residential solar and battery systems.
PG&E Grid Services program provided nearly 30 Megawatts to the grid.
Sunrun
Sunrun
Sunrun Revenue by Segment
Revenue by Segment
Customer Agreements and Incentives Revenue
CapyFin.comSolar Energy Systems and Product Sales Revenue
CapyFin.com Forward Guidance
Sunrun is sharpening its focus on cash generation and continues to execute a customer-first, sustainable growth strategy that does not require equity funding. Storage Capacity Installed is expected to be in a range of 180 to 200 Megawatt hours in Q4. Solar Energy Capacity Installed is expected to be in a range of 220 to 245 megawatts in Q4. Net Subscriber Value is expected to be stable in Q4.
Positive Outlook
- Increasing installations of storage systems provide increased margins and value creation opportunities.
- Launching battery retrofit offerings.
- Meaningful hardware cost deflation tailwinds are expected.
- Forthcoming ITC adder value is expected to provide material uplift to Net Subscriber Values in 2024.
- Focus on delivering meaningful Cash Generation faster.
Challenges Ahead
- Presents near-term impacts as operations shift.
- Lowering full-year growth guidance for Solar Capacity Installed.
- Fixed cost absorption pressures offset many benefits from higher storage mix in Q4.
- Strategy prioritizes storage over volume growth.
- Transitioning to a storage-first company requires adjustments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income