Slide 1: 2Q 2024 Financial Results
2Q 2024 Financial Results August 6, 2024 2Q24 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: Q2 Overview & Strategic Priorities
Q2 OVERVIEW & STRATEGIC PRIORITIES Mary Powell CEO 03
Slide 4: Sunrun delivered $217 million in Cash Generation, grew Storage, Solar Capacity, & Net Subscriber Value
Sunrun delivered $217 million in Cash Generation, grew Storage, Solar Capacity, & Net Subscriber Value by 28%, 9%, & 4% q/q We continue to execute our storage-first, margin-focused growth strategy to drive Q2 Key Metric Performance meaningful Cash Generation 984,000 ➔ In Q2, we exceeded the high-end
Slide 5: Sunrun achieved a rapid transition to higher-margin battery storage
Sunrun achieved a rapid transition to higher-margin battery storage Storage installations in Q2 grew 152% y/y to 265 Megawatt hours, achieving a 54% attachment rate Storage Attachment Rate on New Installations ➔ Sunrun has installed more than 116,000 solar and storage systems, representing almost 1.
Slide 6: Utility pricing is increasing and reliability is declining
Utility pricing is increasing and reliability is declining. Solar and storage technology is improving and becoming lower cost. ➔ US Utilities requested $18 billion in rate hikes last year, the third Retail Electricity Price Increases Over The Past Two Years(6) straight year of record requests. For t
Slide 7: Customer values significantly in excess of initial contracted Net Subscriber Value
Sunrun is poised to deliver customer values significantly in excess of initial contracted Net Subscriber Value ➔ Sunrun is focused on providing a suite of clean energy offerings to enhance our differentiation in the market today and provide additional products and services to our customers for decades
Slide 8: We love our people
We love our people Teams Driving Success in Q2 Top Sales Team SnapNrack Los Angeles, California | Direct-to-Home Our independently-run business that proudly sells Based on Commitment to Safety, Storage advanced racking systems for the solar industry Attachment Rates, Quality and Customer with multip
Slide 9: Sunrun customers enjoyed uninterrupted energy during Hurricane Beryl
Sunrun customers enjoyed uninterrupted energy during Hurricane Beryl Sunrun customers utilized solar-plus-storage systems to 1,600+ customers keep their lights on, food refrigerated, and fans running in the greater Houston area powered through multi-day outages with storage systems Hurricane Beryl s
Slide 10: Financial Performance & Outlook
FINANCIAL PERFORMANCE & OUTLOOK Danny Abajian CFO 010
Slide 11: 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 $1.5 billion with an Average Remaining Contract Life of 17.8 years Q2 Volume Performance 26,687 265 MWh 192 MW 54% Customer Additions Storage Capacity I
Slide 12: Q2 Net Subscriber Value was $12,394, with additional ITC adder value expected
Q2 Net Subscriber Value was $12,394, with additional ITC adder value expected ➔ 24,984 Subscriber Additions with Net Subscriber Value of $12,394 using a 6% discount rate, resulting in Total Value Generated of $310 million in Q2. ➔ These figures include the benefits of the low-income and energy communi
Slide 13: Three 10% ITC adders enhance unit economics
Three 10% ITC adders enhance unit economics ➔ These ITC adders will make solar more affordable and accessible to a broader consumer population. ➔ We have operationalized receipt and accounting for the energy communities & low-income adders. ➔ A meaningful mix of our deployments in the coming quarters
Slide 14: Tailwinds from improving product mix
We are enjoying tailwinds from improving product mix Subscription Mix Increasing Subscriber Mix(2) ➔ 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
Slide 15: Net Earning Assets increased to $5.7 billion
Net Earning Assets increased to $5.7 billion ➔ We have ~$15.7 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 $5.7 billion in prese
Slide 16: Sunrun has achieved strong Subscriber Values
Sunrun has achieved strong 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 still de
Slide 17: 15+ years of consistent capital markets execution
Sunrun has demonstrated 15+ years of consistent 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 fo
Slide 18: Outlook
Outlook Full-year 2024: ➔ Reiterating Cash Generation guidance of $50 million to $125 million ($200 million to $500 million annualized) in Q4 2024.1 ➔ Storage Capacity Installed is expected to be in a range of 1,030 to 1,100 Megawatt hours, representing growth of approximately 86% at the midpoint, a
Slide 19: Introducing Cash Generation guidance of $350 million to $600 million in 2025
We are introducing Cash Generation guidance of $350 million to $600 million in 2025 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).
Slide 20: Appendix
Appendix 20
Slide 21: Metric Sensitivity Tables
Metric Sensitivity Tables ➔ Net Earning Assets excludes other assets, such as Inventory ($353m as of 2Q24) 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: Investor Relations
Investor Relations investors.sunrun.com 415-373-5206 investors@sunrun.com