U.S.-based solar energy, battery, and storage services provider Sunrun reported a revenue of $518.49 million in the fourth quarter (Q4) of 2024, a mostly flat growth compared to $516.59 million in the corresponding quarter last year. The revenue also fell short of analysts’ expectations by $22.56 million.

The company’s 21% year-over-year (YoY) increase in customer agreements revenue was offset by a 33% YoY decline in solar energy systems and product sales.

Sunrun’s earnings per share (EPS) came in at -$12.51, beating analysts’ expectations by $0.18.

Sunrun reported a net loss of $2.81 billion in Q4 2024, a considerable YoY increase from a net loss of $350.12 million. A significant $3.1 billion goodwill impairment charge resulted in an inflated net loss. This goodwill primarily stemmed from Sunrun’s 2020 acquisition of Vivint Solar and was fully written off due to a decline in stock price.

In Q4 2024, the company’s customer additions were 32,932, including 30,709 subscriber additions, growing 12% YoY. As of December 31, 2024, Sunrun had 1,048,842 customers, including 889,186 subscribers.

Annual recurring revenue from subscribers was approximately $1.6 billion as of December 31, 2024. The average contract life remaining of subscribers was 17.6 years as of December 31, 2024.

Subscriber value was $55,811 in Q4 2024, an 11% increase compared to Q4 2023. Creation cost was $36,634 in the fourth quarter, a 1%YoY decrease.

 

Storage capacity installed was 392 MWh in Q4 2024, a 78% increase compared to Q4 2023.

Solar energy capacity installed was 242.4 MW, a 7% increase compared to the same quarter the previous year. This figure includes 232 MW of solar energy capacity installed for subscribers in Q4 2024, an 11% YoY increase.

Networked solar energy capacity was 7,531 MW as of December 31, 2024. This figure includes 6,436 MW of networked solar energy capacity for subscribers.

Networked storage capacity stood at 2.5 GWh as of December 31, 2024.

Sunrun saw its share of residential storage installations expand to over 50% in the U.S., while residential solar installations nationwide picked up from 13% in Q1 to 19% in Q4.

Full-year 2024

Sunrun reported revenue of $2.04 billion in 2024, down 10% YoY from $2.26 billion. Despite a 27% YoY increase in customer agreements revenue, the revenue fell due to a 50% yearly decline in solar energy systems and product sales.

Sunrun’s EPS came in at -$12.81, compared to -$7.41 in 2023.

It reported a net loss of $2.85 billion in 2024 compared to a net loss of ₹1.6 billion in the corresponding quarter of the previous year. This loss was also due to the $3.1 billion goodwill impairment and increased interest expenses from higher debt financing costs.

Danny Abajian, Chief Financial Officer, Sunrun during the earnings call noted that he expects a 44% weighted average ITC level in 2025, further underpinning the company’s guidance assumptions of 7.5% to 8% average cost of project-level capital, battery attachment rates around 66%, and slight improvements to the timing of tax credit transfers as that market further matures.

Mary Powell, Chief Executive Officer, noted that Sunrun has allocated excess cash to pay down its parent debt by $186 million since Q1 of last year while making strategic long-term investments in AI to lower costs, streamline operations, and create a differentiated customer experience. Sunrun also allocated excess cash to execute its end-of-year safe harbor equipment purchases to the effects of potential policy changes.

Q1 2025 Outlook

Cash generation is expected to range from $40 million to $50 million in Q1 2025. Cash generation is expected to range from $200 million to $500 million for the whole year.

Storage capacity installed is expected to range from 265 MWh to 275 MWh in the first quarter of 2025, representing approximately 30% growth YoY at the midpoint. Solar energy capacity installed is expected to range from 170 MW to 180 MW in Q1 2025, representing an approximately flat YoY growth at the midpoint.

The company expects a robust YoY growth in storage capacity installation, and solar energy capacity installation is expected to be flat.

Sunrun reported revenue of $537.2 million in the third quarter of 2024, a 4.62% decline YoY, which missed projections by $27.74 million.