SunRun’s Q3 earnings reveal strong growth

From pv magazine USA

SunRun’s third quarter volumes shot up 40% from its second quarter level and 2% year-over-year, and the company expects to see continued growth and margin expansion into next year.

“We expect total volumes [after accounting for the Vivint solar acquisition] to increase over 10% sequentially to approximately 172 megawatts,” said CFO Tom vonReichbauer.

Through its acquisition of its rival, Vivint Solar, SunRun’s customer base grew 20%, increasing from 326,000 last year to more than 500,000 at the end of the third quarter. Because its acquisition of Vivint closed on Oct. 8, SunRun will only start reporting as a combined company in the fourth quarter.

Year over year, SunRun’s total revenue fell 3% to $209.8 million. At the end of the third quarter, SunRun’s solar energy systems and product sales revenue hit $95.3 million, down 20% fromthe third quarter of 2019. But the company’s customer agreements and incentives revenue, which came in at $114.5 million in the third quarter, was up 19% from the same period last year.

In the third quarter, SunRun’s total cost of revenue was $153 million, and its total operating expenses fell 1% year on year, coming in at $272 million.

SunRun has also announced a new series of partnerships aimed at deepening its environmental and social sustainability commitments. These include a tie-up with Grid Alternatives to provide free battery systems to low-income customers in wildfire-prone areas and to provide 1,400 hours of paid solar installation job training.

Last quarter, SunRun also announced a partnership CHANEL to install about 30 MW of solar on affordable multi-family properties throughout California. It also revealed a partnership with The Honnold Foundation to launch a new grant fund that will offer non-restricted grants to community-based nonprofits.

In addition, SunRun started offering a product for low-income families in Illinois in the third quarter. With $0 upfront, and $0 over the 20-year lease agreement, participating households receive 100% of the net metering credits, SunRun said, noting that this product provides immediate savings while helping Illinois meet its renewable energy goals.

Involvement and experience in these ESG-focused initiatives could leave SunRun better positioned to work effectively in these sectors as they develop.