Slide 1: 3Q 2023 Financial Results
3Q 2023 Financial Results November 1, 2023 01
Slide 2: Safe harbor & forward looking statements
Safe harbor & forward looking statements This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act o
Slide 3: Q3 Overview & Strategic Priorities
Q3 OVERVIEW & STRATEGIC PRIORITIES Mary Powell CEO 03
Slide 4: Executing a customer-first and disciplined, margin-focused strategy to drive cash generation
Executing a customer-first and disciplined, margin-focused strategy to drive cash generation Our priority is cash generation and a disciplined, customer-first Q3 Key Metric Performance sustainable growth strategy ➔ In the Affiliate Partner channel, we are not chasing solar-only volume with subpar 903,27
Slide 5: Leading the charge in California with pro-consumer and pro-grid solar & storage offering
Leading the charge in California with pro-consumer and pro-grid solar & storage offering Recent California Market Mix <3% Solar Only ➔ Sunrun is leading with the most pro-consumer offering, with storage attachment rates far exceeding the industry. ➔ As customer demand rebuilds following the transition
Slide 6: Adjusting 2023 outlook to reflect current environment and maximize long-term value
Adjusting 2023 outlook to reflect current environment and maximize long-term value, consistent with disciplined growth strategy Sunrun is sharpening its focus on Cash Generation and a customer-first sustainable growth strategy. As a result, we are dramatically increasing installations of storage, whic
Slide 7: Outlook reflects our increasing focus on the best offering for customers, Sunrun and the grid
Outlook reflects our increasing focus on the the best offering for customers, Sunrun and the grid 1 California market outlook is very strong; rebound in 2023 taking longer than initially forecasted as we focus on the best customer offering and transition to a storage-first company ➔ Strong value proposi
Slide 8: Outlook reflects deliberate go-to-market discipline and continued optimization
Outlook reflects deliberate go-to-market discipline and continued optimization, consistent with long-held strategy 3 Disciplined in how we participate through the Affiliate Partner channel, preferring enduring relationships with companies that value our platform and sustainable pricing model ➔ We are d
Slide 9: Celebrating Our People
Celebrating Our People Top Install Crew in Q3 Top Sales Team in Q3 Based on Performance, Safety Based on leading Storage Attachment Rates, and Customer Experience Customer Experience and Sales Productivity Tampa, FL “Unstoppables” Crew Fresno, CA 3Q23 Earnings Presentation
Slide 10: Financial Performance & Outlook
FINANCIAL PERFORMANCE & OUTLOOK Danny Abajian CFO 010
Slide 11: Sunrun is Building a Base of Customers with Recurring Revenue and Multi-Decade Relationships
Sunrun is Building a Base of Customers with Recurring Revenue and Multi-Decade Relationships 33,806 Customer Additions in Q3 258.2 Megawatts of Solar Energy Capacity Installed in Q3, +1% year-over-year 175.6 Megawatt hours of Storage Capacity Installed in Q3, +131% year-over-year 903,270 Customers +
Slide 12: Net Subscriber Value of $11k in Q3, before realization of hardware cost deflation benefits
Net Subscriber Value of $11k in Q3, before realization of hardware cost deflation benefits & full potential ITC adders ➔ 29,303 Subscriber Additions with Net Subscriber Value of $11,030 using a 6% discount rate, resulting in Total Value Generated of $323 million in Q3. ➔ These figures do not include th
Slide 13: Strong Net Subscriber Value tailwinds expected from forthcoming ITC adders & hardware cost deflation
Strong Net Subscriber Value tailwinds expected from forthcoming ITC adders & hardware cost deflation Energy Communities Adder Operationalized; Low-Income and Domestic Content Adders Expected In Coming Quarters These critical ITC adders will make solar more affordable and accessible to a broader consum
Slide 14: Pro-forma Net Subscriber Value of $14.8k in Q3
Pro-forma Net Subscriber Value of $14.8k in Q3, inclusive of full potential ITC adder value and equipment cost deflation ➔ Q3 Subscriber Value includes realization of the Energy Communities 10% ITC adder (approx 13% mix qualified). We expect to realize additional value from Subscriber Additions in Q3
Slide 15: Strong Tailwinds From Product Mix
Strong Tailwinds From Product Mix Subscription Mix Increasing Subscriber Mix2 ➔ Sunrun’s Subscription model is advantaged in the market; Sunrun has more than 60% share of the Subscription market.1 ➔ Current and forthcoming ITC Adder benefits, which are only available under the Subscription model, sho
Slide 16: Net Earning Assets Increases to $4.6 Billion
Net Earning Assets Increases to $4.6 Billion ➔ We have $13.3 billion in Gross Earning Assets, which is our measure of the present value of cash flows from customers over time. ➔ Projected cash flow from customers plus cash, less total debt and pass-through obligations represents $4.6 billion in presen
Slide 17: Adapting to a higher interest rate environment
Adapting to a higher interest rate environment ➔ Sunrun has increased pricing and adjusted go-to-market approaches multiple times throughout 2022 and into 2023 to respond to inflation and higher interest rates. High utility rate inflation across the United States has provided us headroom to increase p
Slide 18: Demonstrated 15+ Year Capital Markets Execution
Demonstrated 15+ Year Capital Markets Execution ➔ We have a strong track record of attracting low-cost capital from diverse sources. Our access to capital markets puts us in a position to offer more advantageous financing options to consumers while creating long-term value for investors. ➔ We have dem
Slide 19: Outlook
Given our strategy to be a storage-first company to Outlook extend our differentiation and increase customer value, in addition to launching battery retrofit offerings, we are introducing guidance for Storage Capacity Installed. STORAGE CAPACITY INSTALLED EXPECTED TO BE IN A RANGE OF 180 TO 200 MEGAWATT
Slide 20: Reiterating Commitment to Drive Meaningful Cash Generation
Reiterating Commitment to Drive Meaningful Cash Generation ➔ While the current interest rate environment will delay realization of achieving the high-end of our targets compared to our prior timing expectations, we are working hard to ensure an optimized footprint and product mix, along with strong
Slide 21: Appendix
Appendix 21
Slide 22: Metric Sensitivity Tables
Metric Sensitivity Tables ➔ Net Earning Assets excludes other assets, such as Inventory ($662m as of 3Q23) and a portion of systems currently under construction but not yet recognized as deployed and therefore not yet reflected in Gross Earning Assets. ➔ Existing assets are financed with fixed-rate deb
Slide 23: GAAP Income Statement
GAAP Income Statement Customer Agreements and Incentive Revenue is comprised of ongoing revenue from customers under long-term agreements, amortization of prepaid systems, and incentive revenue. The value of the Investment Tax Credits (ITC) are recognized as Incentive revenue, when monetized using a
Slide 24: GAAP Balance Sheet
GAAP Balance Sheet Deferred revenue is primarily Customer Prepayments which are recognized over the life of the contract, typically 20 or 25 years ($819.3 million balance of Payments Received Under Customer Agreements at the end of 2022). $7.5 billion of our debt is non-recourse project debt and sol
Slide 25: GAAP Cash Flow Statement
GAAP Cash Flow Statement Cash Flow From Operations is negative as 25-30% of our Creation Costs are expensed in the period, while revenue is recognized over 80 periods or more. Additionally, we raise Debt and Project Equity to fund our growth, which covers CFO and CFI. These investments are the capex
Slide 26: Glossary
Glossary Deployments represent solar energy systems, whether sold directly to customers or subject to executed Net Subscriber Value represents Subscriber Value less Creation Cost. Customer Agreements (i) for which we have confirmation that the systems are installed on the roof, subject to final insp
Slide 27: Glossary (continued)
Glossary (continued) Cash Generation is calculated using the change in our unrestricted cash balance from our consolidated balance sheet, less net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible debt), and less any primary equity issuances or net proceeds derived f
Slide 28: Investor Relations
Investor Relations investors.sunrun.com 415-373-5206 investors@sunrun.com