Slide 1: 4Q 2023 Financial Results
4Q 2023 Financial Results February 21, 2024 4Q23 Earnings Presentation
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: Q4 Overview & Strategic Priorities
Q4 OVERVIEW & STRATEGIC PRIORITIES Mary Powell CEO 03
Slide 4: Q4 results delivered strong margin increases and cash generation
Q4 results delivered strong margin increases and cash generation, as we executed our storage-first strategy Our priority is cash generation through sustainable, profitable growth ➔ Delivered Net Subscriber Value of $13,445, increasing $2.4k, or 22%, from Q3, Q4 Key Metric Performance exceeding guidanc
Slide 5: We are rapidly transitioning to lead with storage offerings
We are rapidly transitioning to lead with storage offerings Storage installations in Q4 grew +154% y/y, reaching a >45% attachment rate ➔ Over 219 Megawatt hours of Storage Capacity Installed in Q4, a 154% increase compared the prior year ➔ Sunrun has now installed more than 90,000 solar and storage
Slide 6: Total Value Generated expected to grow by over 15% in 2024
Total Value Generated expected to grow by over 15% in 2024 driven by higher Subscriber Values & lower input costs Installations, which lag sales, now reflect earlier market optimization decisions & margin discipline; installations expected to grow rapidly from 1Q24 levels as sales exceed 23% sequenti
Slide 7: Early renewal pilot highlights customers eager for ongoing services
Early renewal pilot highlights many customers are eager to benefit from ongoing services beyond the initial contract ➔ Initial pilot targeting several hundred customers is underway and initial results demonstrate strong value creation potential beyond our initial contracts ➔ Results suggest most cust
Slide 8: Sunrun selects Lowe's as home improvement partner
Sunrun selects Lowe’s as home improvement partner Strategic Partnership Formed and Already Active in Stores ➔ Initial stage of the partnership has Sunrun launching in many states. The initial footprint represents strong alignment with Sunrun’s target markets and areas. ➔ Sunrun is already staffing sto
Slide 9: Celebrating Our People & Partners
Celebrating Our People & Partners Top Install Crew in Q4 Bright Panel Solar Top sales dealer in Puerto Rico Based on Commitment to Safety, Exclusively sells Sunrun offerings in Puerto Rico Storage Attachment Rates and Customer Experience One of Sunrun’s fastest growing partners on the island Bakersfie
Slide 10: Financial Performance & Outlook
FINANCIAL PERFORMANCE & OUTLOOK Danny Abajian CFO 010
Slide 11: Building a Base of Customers with Recurring Revenue
Sunrun is Building a Base of Customers with Recurring Revenue and Multi-Decade Relationships 30,005 Customer Additions in Q4 227.1 Megawatts of Solar Energy Capacity Installed in Q4, -18% year-over-year 219.7 Megawatt hours of Storage Capacity Installed in Q4, +154% year-over-year 933,275 Customers
Slide 12: Net Subscriber Value increased to $13.4k in Q4
Net Subscriber Value increased to $13.4k in Q4; additional hardware cost deflation & ITC adder value expected ➔ 27,000 Subscriber Additions with Net Subscriber Value of $13,445 using a 6% discount rate, resulting in Total Value Generated of $363 million in Q4. ➔ These figures include the benefits from
Slide 13: Net Subscriber Value tailwinds from ITC adders & hardware cost deflation
Strong Net Subscriber Value tailwinds expected from forthcoming ITC adders & hardware cost deflation Energy Communities Adder Operationalized and Low-Income Quota Allocation Approvals Flowing; Domestic Content Adder Expected In Coming Quarters These critical ITC adders will make solar more affordable
Slide 14: Pro-forma Net Subscriber Value of $15.3k in Q4
Pro-forma Net Subscriber Value of $15.3k in Q4, inclusive of full potential ITC adder value and equipment cost deflation ➔ Q4 Subscriber Value includes realization of the Energy Communities 10% ITC adder and the Low-Income 10% ITC adder. We may realize additional value from Subscriber Additions in Q4
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 Increase to $5.0 Billion
Net Earning Assets Increase to $5.0 Billion ➔ We have ~$14.2 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 $5.0 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
Outlook Full-year 2024: ➔ Storage Capacity Installed is expected to be in a range of 800 to 1,000 Megawatt hours, representing growth of 40% to 75% ➔ Solar Energy Capacity Installed is expected to be in a range of -5% to +5% growth for the full-year 2024 ➔ Net Subscriber Value to reach levels during
Slide 20: Reiterating Commitment to Drive Meaningful Cash Generation
Reiterating Commitment to Drive Meaningful Cash Generation Annualized recurring Cash Generation of $200 to $500 million by 4Q 2024 with Cash Generation through the period1 Key Assumptions Underpinning Cash Generation Target: ➔ Volume: New installations grow approximately 15% year-over-year in ➔ Capi
Slide 21: Appendix
Appendix 21
Slide 22: Metric Sensitivity Tables
Metric Sensitivity Tables ➔ Net Earning Assets excludes other assets, such as Inventory ($460m as of 4Q23) 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 ($873.1 million balance of Payments Received Under Customer Agreements at the end of 2023). $9.7 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