Sunrun’s Q3 2024 financial results were strong despite reporting a 5% YoY drop in revenues
Its storage installation rates went up by 92% YoY, while the solar energy capacity installations totaled 230 MW
In Q4 2024, Sunrun targets to install 240 MW to 250 MW of solar energy capacity
US residential solar power company Sunrun had a good run in Q3 2024, as it reported a 92% year-on-year (YoY) growth in storage capacity installations for a total of 336.3 MWh. The storage attachment rates reached 60% during the quarter, an increase of 33% over the previous year.
The company counts to have installed more than 135,000 solar and storage systems, representing over 2.1 GWh of stored energy capacity.
During the reporting quarter, it installed 230 MW of solar energy capacity, achieving the higher end of its guidance, reaching a combined 7.3 GW of networked solar energy capacity.
“In the third quarter, we delivered on our commitments for solar and storage installations, margin expansion and Cash Generation. Net Subscriber Value was the highest level the company has ever reported, a testament to our margin-focused and disciplined growth strategy,” said Sunrun CFO Danny Abajian.
During the reporting quarter, it earned $537.2 million in revenues, which declined by 5% YoY. Revenues from customer agreements and incentives were $405.9 million, up 28% YoY. On the other hand, solar energy systems and product sales revenue of $131.3 million declined 47% YoY.
The company’s total cost of revenue was $433.7 million, a drop of 16% over the same comparable period, while total operating expenses went down by 111% to $665 million. Net loss was $83.8 million.
In the key operating metrics, the management shared that the creation cost of $36,591 went up by 2% and subscriber value of $51,223 increased by 9%. Net subscribed value was $14,632 improved by 33% YoY.
Sunrun increased its customer base by 12% YoY with the addition of 31,910 including 30,348 subscriber additions during Q3. As of September 30, 2024, its total residential solar customer count surpassed 1 million, which it says makes it the 1st clean energy company to do so.
Guidance
In Q4 2024, Sunrun targets to install 240 MW to 250 MW of solar energy capacity, reflecting 8% YoY growth at the midpoint, and 7% growth at the midpoint compared to Q3. For the full year 2024, this implies a decline of 17% at the midpoint compared to 2023.
It expects to install 320 MWh to 350 MWh of storage capacity in Q4 this year, aiming for a 52% growth at the midpoint compared to the previous year. For the full year, it implies a 100% growth at the midpoint. The company expects the storage attach rates to remain at levels similar to Q3 over the next few quarters but expects it to grow rapidly.
Sunrun reiterated its cash generation guidance of $50 million to $125 million.
The management also maintained its cash generation guidance of $350 million to $600 million for FY 2025.