Sunrun adds 297MW installed capacity in Q2, predicts up to 15% YoY growth

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Sunrun’s solar capacity reaches 6.2GW. Image: Sunrun

US solar installer Sunrun’s installed solar capacity in the second quarter of 2023 increased by 23% quarter-on-quarter, while it also significantly improved its net income to US$55.5 million in Q2.

The company said in its latest financial announcements that it added 296.6MW of installed solar capacity in Q2 2023, up from 239.8MW in Q1, representing a 23.7% increase. The company’s cumulative installed solar capacity has reached 6.2GW.

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In Q2, customer additions totalled 39,755, including 32,389 subscriber additions. As of June 30, Sunrun had 869,464 customers, including 724,784 subscribers. Customers grew by 22.7% in Q2 compared to Q1 2023.

However, sales in California in Q2 were below the company’s initial expectations following the transition to the new Net Billing Tariff.

“Despite slower than anticipated sales in May, sales in June and July ramped at strong month-over-month rates in our direct business. We are down about a third compared to July 2022, with our direct business
performing significantly better, and are seeing strong week over week improvements exiting the month,” said Mary Powell, CEO of Sunrun.

She added: “As consumers adjust to the new regulatory environment, and understand the value proposition that we are able to offer, I am confident this trend will continue, and we are on track for strong year-over-year growth in California.”

But Sunrun posted an improved quarterly result as its net income for the second quarter of 2023 reached US$55.5 million, after losing US$12.4 million in the same period last year. Total revenue was US$590.2 million in Q2, up US$5.6 million, or 1%, from Q2 2022.

Looking forward, Sunrun expected the growth of its installed solar capacity to be in the range of 10% to 15% for the whole year of 2023. As of the end of 2022, the company had an installed capacity of around 5.7GW.

“Last quarter, we noted we might be around the high end of this range (of 10%-15%), but we now feel comfortable reiterating this range, as we plan for a persistently higher interest rate environment, our decision to exit certain lower margin markets, increased install cycle times from growth in storage attachment rates, and a slower than expected recovery in California,” said Danny Abajian, Sunrun’s chief financial officer.

For Q3 2023, the installed solar capacity will be in the range of 255MW-275MW. Abajian said, “This decrease from Q2’s level reflects the decline in California order volumes in Q2, which will
impact installs in Q3.”

Apart from its financial results, Sunrun also collaborated with electric utility Pacific Gas and Electric Company to launch a programme allowing customers in California to share the excess solar energy they are generating on their rooftops with their neighbours.

Sunrun said the programme could support the grid from August to October as high temperatures challenge the state’s grid to meet peak energy demand. The programme expanded to accommodate 8,500 customers and 34MW after its original maximum enrollment and energy capacity goals of 7,500 and 30MW were quickly filled.

“This program extension plays a unique and positive role in enhancing our state’s electric grid, reinforcing our commitment to empowering customers and communities with greater energy resilience and energy security to consumers, in a time where outages have become increasingly more common,” said Powell.

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