Sunrun Deploys 91 MW In Q2/2018

Leading Residential US installer Sunrun's Deployments In Q2/2018 Increased 20% YoY; Revenues Were Up As Net Income Went Down  
11:59 PM (Beijing Time) - 12. August 2018

Sunrun cumulative deployments at the end of Q2/2018 came to 1,360 MW, which translates into a 32% YoY growth. (Source: Sunrun Inc.)

Key Takeaways

  • US based Sunrun installed 91 MW capacity for its customers during Q2/2018, growing 20% over Q2/2017
  • Creation cost per watt was $3.12 or $23,700 per customer, down 7% on annual basis
  • Highest contribution to total revenues of $170.5 million came from customer agreements and incentives of $91.6 million
  • Full year guidance of15% improvement over 2017 deployments of 323 MW was reiterated

US solar energy services provider Sunrun Inc. had a strong Q2/2018 with deployments running up to 91 MW, which represents a 20% over last year’s 76 MW.

It reported creation cost per watt of $3.12, dropping 7% over last year’s $3.37. Creation cost includes installation, sales and marketing, general and administrative cost as well as platform services. According to Sunrun, this translates into $3.12 per watt or $23,700 per customer.

Sunrun’s installation cost for the reporting quarter was $1.95 per watt, rising from $1.87 per watt, due to continued adoption of batteries, it says. Overall, cost improved to $3.29 per watt in the first six months of 2018, compared to $3.37 per watt in H1/2017.

Total revenues grew 31% YoY to $170.5 million. Customer agreements and incentives improved the most with 58% YoY to $91.6 million, followed by $78.9 million coming from solar energy systems and product sales, which was a 9% improvement.

However, net income was $7.4 million in Q2/2018, whereas a year back, it was $18.3 million. ‘The weaker-than-expected EPS was driven by a greater mix of lease pass through fund structures and the resulting accounting impact,’ according to Roth Capital.

Sunrun guides for approximately 110 MW of deployments in Q3, while for full year 2018, it confirmed the expectation to grow 15% in deployments. Back in 2017, it deployed a total of 323 MW (see Sunrun Deployed 85 MW In Q4/2017).

To start, we see volume growth ahead being better than expected coming from the potential of an additional national partner or perhaps even a new homebuilder. Battery attachment rates are expected to increase, and storage volumes could be more than double in H2’18 vs. H1’18. Additionally, we could see an attractive, cash generating transaction in Q4, and CF generation could double in 2019 YoY. All in, the positive Sunrun narrative remains firmly intact,” said Roth Capital.


Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani