Sunrun Q1/2024 Financial Results A Little Bleak

• In Q1, storage capacity installed totaled 207 MW hours
• Solar energy capacity installed totaled 177 MW
• Storage attachment rates on installations touch 50%, a rise of 15% compared to Q1/2023

Releasing its Q1 results for 2024, US residential solar and storage installer and financier Sunrun said that it has achieved total revenue of $458.2 million, which is $131.6 million or 22% lower than Q1/2023.

However, storage attachment rates on installations touched 50%, which is up 15% from the same period a year ago. About 207.2 MWh were installed during the quarter. With this, Sunrun has now installed over 102,000 solar and storage systems, which is over 1.5 GW hours of stored energy capacity.

In February, the company had also placed a private securitization of $361 million, with a 232.5 basis point spread, along with a $109 million subordinated loan, resulting in a cumulative advance rate of over 80%. In April, it closed a second securitization transaction for $230 million, which included seasoned assets. In addition, it had arranged new capital or extended maturities of existing capital during Q1 to support growth.

Here are some other key operating metrics:

• Customers: Customers grew by 15% in Q1/2024 from Q1/2023. Customer additions during this period totaled 24,038, including 22,058 subscriber additions. As of March 31, 2024, Sunrun had 957,313 customers, including 803,145 subscribers.
• Solar Energy Capacity: Solar Energy Capacity installed was 177.0 MW in Q1/2024. Solar Energy Capacity installed for subscribers was 165.3 MW in the same period.
• Subscriber Revenues & Value: Annual recurring revenue from subscribers was over $1.4 billion as of March 31, 2024. Subscriber value was at $50,776 for Q1/2024, a 15% increase from Q1/2023.
• Cash Generation: In Q1/2024, cash generation was a negative $311 million, and positive $6 million when adjusted for non-recurring timing and transaction-related costs. Q1 is supposed to be the weakest cash generation quarter owing to seasonality in volume, and this was further impacted by a temporary but significant working capital investment, as well as certain non-recurring costs.
• Gross & Net Earning Assets: As of March 31, 2024, Gross Earning Assets were $15.0 billion, while Net Earning Assets were $5.2 billion, which included $783 million in Total Cash.

Upbeat about the results, Sunrun's Chief Executive Officer, Mary Powell, said, "We are starting the year with solid momentum in the business as our storage-first, margin-focused strategy is delivering strong results. In the first quarter we beat the high-end of both our installation guidance, set new records for storage attachment rates, and delivered another quarter of strong net subscriber values and an increasing mix of subscription services. We are confident in strong growth in installation activities through the year as the fundamental demand drivers of our business continue to be robust. Utility rates continue to rise, due to the stress and strain of climatic events on the grid and the massive utility capital expenditures. Solar and storage equipment costs are declining, while our operating efficiency continues to improve. And most importantly, customers remain eager for clean, affordable and resilient energy to power their lives."

Sunrun's Chief Financial Officer, Danny Abajian, said: "We remain committed to driving meaningful cash generation as we execute our margin-focused and disciplined-growth strategy. While one-time transaction costs and timing related items impacted Cash Generation in Q1, we expect to recover these timing headwinds in Q2. We are reiterating our strong Cash Generation outlook for 2024."

Meanwhile, Sunrun exited 2023 with a net loss of -$1.6 billion, including $350 million in Q4 (see Sunrun Installed 227.1 MW Solar Energy In Q4/2023).