Sunrun Puts Up Strong Deployment and Sales Growth as it Prepares for ITC Phasedown

Sunrun didn’t chalk up a fourth consecutive deployment record in
Q1, but the largest U.S. residential solar company showed strong
growth on a number of key metrics compared to last year.

  • Sunrun installed 86 megawatts in the first quarter of 2019, up
    27 percent from Q1 2018, beating its own guidance.
  • It expects to install 102 to 104 megawatts in Q2, and to grow
    its deployments 16 to 18 percent for the whole of this year. That
    would mean as much as 440 megawatts of installations in 2019.
  • Quarterly revenue rose 35 percent year over year, to $194.5
    million, with especially strong growth on the third-party-ownership
    side of its business, encompassing leases and power-purchase
    agreements.
  • Its net loss shrank to $86.9 million for the quarter, compared
    to a loss of $91.4 million in the comparable quarter last
    year.

Greentech Media spoke to CEO Lynn Jurich Wednesday ahead of the
San Francisco-based company’s earnings call with analysts. Among
the thoughts Jurich shared:

On the phasedown of the federal investment tax
credit:

“The decline of the investment tax credit puts pressure on solar
installers to streamline operations. A general rule of thumb would
be to raise project value 2 percent and reduce costs by 4 percent
annually to prepare for the drop-down of the credit from 30
percenet to 10 percent.”

“We want to attack the equations on both of those dimensions,”
Jurich said, though she declined to name exact targets for Sunrun’s
ITC preparations. 

On California’s mandate for solar on new homes from
2020:

“We are engaged with more than half of the top 10 builders in
California, so we think that we’re well positioned for when the
mandate kicks in.”

“It’s been very loud and clear from the developers, because we
pay for it,” Jurich said. “It’s a more efficient model to have a
third party like us own the system, so neither the homebuyers nor
the builders have to pay for it.”

That keeps solar equipment off the homebuilder’s balance sheet,
and frees up the buyer’s mortgage dollars to go towards other home
upgrades, she added.

This story is developing and will be updated.

Source: FS – GreenTech Media
Sunrun Puts Up Strong Deployment and Sales Growth as it Prepares for ITC Phasedown