Slide 1: 1Q 2024 Financial Results
1Q 2024 Financial Results May 8, 2024 1Q24 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: Q1 Overview & Strategic Priorities
Q1 OVERVIEW & STRATEGIC PRIORITIES Mary Powell CEO 03
Slide 4: Q1 results beat volumes and delivered strong margins, executing storage-first strategy
Q1 results beat volumes and delivered strong margins, as we executed our storage-first strategy; volume inflection point in 2H Executing storage-first, margin-focused sustainable growth strategy to drive meaningful Cash Generation Q1 Key Metric Performance ➔ In Q1, exceeded high-end of both storage and
Slide 5: We are rapidly transitioning to lead with storage offerings
We are rapidly transitioning to lead with storage offerings Storage installations in Q1 grew 192% y/y to 207 Megawatt hours, achieving a 50% attachment rate Storage Attachment Rate on New Installations ➔ Over 207 Megawatt hours of Storage Capacity Installed in Q1, a 192% increase compared to the prio
Slide 6: Total Value Generated expected to grow by over 10% in 2024
Total Value Generated expected to grow by over 10% in 2024 driven by higher Subscriber Values & lower input costs; volume inflection point in 2H ➔ Installations, which lag sales, now reflect earlier market optimization decisions & margin discipline; installations expected to grow from 1Q24 levels. ➔ A
Slide 7: We Love Our People
We Love Our People Top Teams in Q1 Based on Commitment to Safety, Storage Attachment Rates, Quality and Customer Experience Top Sales Team Top Installation Team Direct-to-Home Led by Foreman Jonathan M. Houston, TX Houston, TX 1Q24 Earnings Presentation
Slide 8: Financial Performance & Outlook
FINANCIAL PERFORMANCE & OUTLOOK Danny Abajian CFO 08
Slide 9: 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 Annual Recurring Revenue from Subscribers increases to $1.4 billion with an Average Remaining Contract Life of 17.9 years Q1 Volume Performance 24,038 207 MWh 177 MW 50% Customer Additions Storage Capacity I
Slide 10: Net Subscriber Value of $11.9k in Q1; hardware cost deflation & ITC adder
Net Subscriber Value of $11.9k in Q1; additional hardware cost deflation & ITC adder value expected ➔ 22,058 Subscriber Additions with Net Subscriber Value of $11,891 using a 6% discount rate, resulting in Total Value Generated of $262 million in Q1. ➔ These figures include the benefits from neither th
Slide 11: 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 Allocations Obtained; Domestic Content Adder Forthcoming These critical ITC adders will make solar more affordable and accessible to a broa
Slide 12: 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 approximately 55% share of the Subscription market.1 ➔ Current and forthcoming ITC Adder benefits, which are only available under the Subscription model,
Slide 13: Net Earning Assets Increases To $5.2 Billion
Net Earning Assets Increases To $5.2 Billion ➔ We have ~$15.0 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 $5.2 billion in prese
Slide 14: Financing Activities & Timing Impacts Q1 Cash Generation
Financing Activities & Timing Impacts Q1 Cash Generation; Adjusted Cash Generation Highlights Strong Core Underlying Performance ➔ Q1, which is typically the weakest quarter for Cash Generation due to volume seasonality, was further impacted by a temporary but significant working capital investment,
Slide 15: Sunrun has been steadily increasing Subscriber Values
Sunrun has been steadily increasing Subscriber Values ➔ Sunrun has increased pricing and adjusted go-to-market approaches multiple times since 2022 to respond to inflation and higher interest rates. High utility rate inflation across the United States has provided us headroom to increase pricing while
Slide 16: 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 17: 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%, unchanged from the prior guidance range. ➔ Solar Energy Capacity Installed is expected to be in a range of -15% to 0% growth for the full-year 2024, a
Slide 18: Reiterating strong Cash Generation guidance
Reiterating strong Cash Generation guidance Cash Generation represents the change in Sunrun’s total unrestricted cash balance, less any increases in recourse debt or issuance of equity (or plus any decreases in repayment of recourse debt or stock repurchases). Cash Generation provides credit for non
Slide 19: Appendix
Appendix 19
Slide 20: Metric Sensitivity Tables
Metric Sensitivity Tables ➔ Net Earning Assets excludes other assets, such as Inventory ($412m as of 1Q24) 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 21: 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 22: 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 23: 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 24: Glossary
Glossary Deployments represent solar or storage 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, subject to final inspection,
Slide 25: 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 26: Investor Relations
Investor Relations investors.sunrun.com 415-373-5206 investors@sunrun.com