Sunrun Inc. (NYSE: RUN), America’s leading residential solar and battery storage provider, released its third-quarter 2024 financial results, showcasing mixed performance with notable achievements in storage deployment despite challenges in solar installations.
- Total revenue reached $537.2 million, marking a 5% decline from Q3 2023
- Storage capacity installations surged 92% year-over-year to 336 Megawatt hours
- Customer agreements and incentives revenue grew 28% to $405.9 million
- Net loss of $83.8 million ($0.37 per share)
- Positive cash generation of $2.5 million for the second consecutive quarter
- Storage attachment rate increased to 60%, up from 33% in Q3 2023
Sunrun’s remarkable performance in storage installations emerges as a bright spot in Q3 2024. The company installed 336 Megawatt hours of storage capacity, representing a 92% increase from the previous year. This achievement, coupled with the increased storage attachment rate of 60%, indicates strong customer demand for integrated solar and storage solutions.
While storage showed impressive growth, solar energy capacity installations faced headwinds, decreasing 11% year-over-year to 230 Megawatts. This decline signals potential market challenges and operational adjustments as the company focuses on profitability and cash generation over volume growth.
The financial results present a mixed picture:
- Revenue decline of 5% indicates short-term challenges
- Positive cash generation demonstrates improving operational efficiency
- Customer agreements revenue growth of 28% shows strong recurring revenue potential
- Net subscriber value increased 9% to $14,632
Sunrun achieved a significant milestone by becoming the first clean energy company to surpass 1 million residential solar customers. The company has also:
- Partnered with 9 of the top 10 new home builders in California
- Launched multiple virtual power plant programs
- Successfully closed a $365 million securitization
- Increased market share from 13% to 18% in residential solar installations
Q4 2024 Guidance
- Storage Capacity: 320-350 Megawatt hours (52% growth at midpoint)
- Solar Energy Capacity: 240-250 Megawatts (8% growth at midpoint)
- Cash Generation: $50-125 million expected
2025 Projections
- Cash Generation: $350-600 million
- New homes division expected to grow by at least 50%
Potential Risks
- Declining solar installation volumes
- Ongoing net losses
- Competitive pricing pressures
- Policy uncertainty and regulatory changes
Growth Opportunities
- Strong storage demand and attachment rates
- Expanding new homes market
- Virtual power plant programs
- Grid services partnerships
Sunrun’s Q3 results highlight its successful pivot toward storage solutions while managing challenges in solar installations. The company’s focus on cash generation and strategic growth initiatives suggests a balanced approach to long-term value creation.
For a detailed analysis of Sunrun’s Q3 2024 performance, visit the full earnings report on EarningsCall SamurAI.
