Sunrun: Q3 Earnings Snapshot

Sunrun, the nation's leading provider of residential solar, storage, and energy services, recently announced its Q3 2023 financial results. The company reported a surge in storage attachment rates, driving revenue growth and margin expansion. This article provides an in-depth analysis of Sunrun's Q3 earnings snapshot, highlighting key performance indicators and strategic initiatives that position the company for future growth.

**Storage Attachment Rates Surge, Driving Revenue Growth**

In Q3 2023, Sunrun's storage attachment rates surged to 33% of installations, nearly doubling the Q2 rate. Recent sales activities exceeded 40% nationally, with California leading the way at 85% of all new customers including storage with the solar system. This significant increase in storage attachment rates contributed to a 131% year-over-year growth in storage capacity installed. Sunrun installed over 176 Megawatt hours of storage during the quarter, representing over 1.1 Gigawatt hours of stored energy capacity.



The higher storage attachment rates and increased installations contributed to a Net Subscriber Value of $11,030, which was $14,793 pro-forma for full ITC adder and lower current equipment prices. This growth in storage attachment rates and installations has likely expanded Sunrun's gross margins, as storage systems have higher margins than solar-only installations.

**Strategic Initiatives Boost Storage Attachment Rates and Drive Growth**

Sunrun has implemented several strategic initiatives to boost storage attachment rates and drive growth. In Q3 2023, the company announced a 131% year-over-year growth in storage capacity installed, with storage attachment rates surging to 33% of installations. Sunrun has also seen recent storage attachment rates exceeding 40% nationally on new sales, with California exceeding 85% of all new customers including storage with the solar system. The company has launched a premium add-on storage offering in California, using a premium battery product that seamlessly integrates with customers' existing solar systems to provide backup power during grid outages and maximize solar energy usage during peak evening hours.



Additionally, Sunrun has expanded its leadership team with the appointments of Dr. Marcus Mueller as Vice President of Generation and Rachit Srivastava as Head of Artificial Intelligence (AI). These appointments will focus on innovation, electrification, and enhancing customer relationships to drive growth.

**Shift Towards a Storage-First Company Enhances Competitive Position**

Sunrun's shift towards a storage-first company is a strategic move that enhances its competitive position and market share in the residential solar and storage sector. By focusing on storage, Sunrun can offer customers a more comprehensive solution, providing not only clean energy but also energy security and cost savings. This approach allows Sunrun to differentiate itself from competitors and attract customers seeking resilience and value.

Sunrun's Q3 2023 earnings snapshot demonstrates the company's strong performance and growth potential. The surge in storage attachment rates, coupled with strategic initiatives and a shift towards a storage-first company, positions Sunrun for continued success in the residential solar and storage sector. As the demand for clean energy and energy resilience grows, Sunrun is well-positioned to capitalize on these trends and deliver value to shareholders.

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