Slides
Page 1
Investor Presentation November 2025
Page 2
Safe harbor & forward looking statements This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the Company’s financial and operating guidance and expectations; the Company’s business plan, trajectory, expectations, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the calculation of such metrics); the Company’s momentum in its business strategies including expectations regarding market share, total addressable market, growth in certain geographies, customer value proposition, market penetration, growth of certain divisions, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the Company’s discussion of new products, including Sunrun Flex; the growth of the storage and solar industry; the Company’s financing activities and expectations to refinance, amend, and/or extend any financing facilities; trends or potential trends within the storage and solar industry, our business, customer base, and market; the Company’s ability to derive value from the anticipated benefits of partnerships, new technologies, and pilot programs, including contract renewal and repowering programs; anticipated demand, market acceptance, and market adoption of the Company’s offerings, including new products, services, and technologies; the Company’s strategy to be a margin-focused, multi-product, customer-oriented company; the ability to increase margins based on a shift in product focus; expectations regarding the growth of home electrification, electric vehicles, home-to-grid distributed power plants, and distributed energy resources; the Company’s ability to manage suppliers, inventory, and workforce; supply chains and regulatory impacts affecting supply chains including reliance on specific countries for critical components; the Company’s leadership team and talent development; the legislative and regulatory environment of the solar industry and the potential impacts of proposed, amended, and newly adopted legislation and regulation on the solar industry and our business, including federal and state-level solar incentive programs (such as the One Big Beautiful Bill Act and Investment Tax Credit), net metering policies, and utility rate structures; the ongoing expectations regarding the Company’s storage and energy services businesses and anticipated emissions reductions due to utilization of the Company’s solar energy systems; and factors outside of the Company’s control such as macroeconomic trends, bank failures, public health emergencies, natural disasters, acts of war, terrorism, geopolitical conflict, or armed conflict / invasion, and the impacts of climate change. These statements are not guarantees of future performance; they reflect the Company’s current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include: the Company’s continued ability to manage costs and compete effectively; the availability of additional financing on acceptable terms; worldwide economic conditions, including slow or negative growth rates and inflation; volatile or rising interest rates; changes in policies and regulations, including net metering, interconnection limits, and fixed fees, or caps and licensing restrictions and the impact of these changes on the solar industry and our business; the Company’s ability to attract and retain the Company’s business partners; supply chain risks, including restrictions on components and materials sourced from designated foreign entities of concern and our reliance on specific countries for critical components, tariff and trade policy impacts, and raw material availability for solar panels and batteries; realizing the anticipated benefits of past or future investments, partnerships, strategic transactions, or acquisitions, and integrating those acquisitions; the Company’s leadership team and ability to attract and retain key employees; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company’s business plan and the Company’s ability to effectively manage the Company’s growth and labor constraints; the Company’s ability to meet the covenants in the Company’s investment funds and debt facilities; factors impacting the home electrification and solar industry generally, and such other risks and uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for any reason, except as required by law. All guidance information contained in this presentation was provided on November 6, 2025 in the 3Q 2025 earnings release. The company assumes no obligation to update such guidance and the guidance is effective only as of the date hereof. Use of Non-GAAP financial measures This presentation includes the Company’s non-GAAP financial measures: Aggregate Creation Costs and Cash Generation. The Company utilizes these non-GAAP measures to analyze the Company’s performance and for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s financial results as reported under GAAP. Additionally, these non-GAAP measures may not be comparable to similarly titled measures presented by other companies, thus reducing their usefulness. Accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company is not able to provide reconciliations of certain forward-looking financial measures to comparable GAAP measures because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted without unreasonable effort. The Company encourages investors to review our GAAP financial measures and to not rely on any single financial measure to evaluate our business.
Page 3
3 Sunrun is powering a customer-led revolution to clean, affordable and locally- generated energy. We are building a more resilient electric grid and doing it at a massive scale and at a rapid pace. OLD WAY NEW WAY Centralized control, single points of failure, expensive, polluting, limited consumer engagement in energy A network of decentralized, decarbonized, democratized, affordable clean energy with consumers Investor Presentation
Page 4
4 Sunrun Overview Our Compelling Value Proposition Sunrun is powering a customer-led revolution to clean, affordable and locally-generated energy, and doing it at massive scale and rapid pace. Formed in 2007, Sunrun pioneered the residential solar energy as a subscription service. We provide a solar energy service with fixed pricing under 20- or 25-year subscription agreements that generate recurring, contracted revenue for multiple decades. We have sold our solar service in 22 states, DC & Puerto Rico. Sunrun has a leading customer acquisition platform, customer experience capabilities, and extensive financing experience, all of which drive significant barriers to entry and the opportunity for high incremental returns. See Appendix for Glossary of Terms. Customers, Networked Solar Energy Capacity, Networked Storage Capacity and Annual Recurring Revenue is rounded and as of September 30, 2025. (1) For all Customers through December 31, 2023. (2) Based on Sunrun's estimates and United States Environmental Protection Agency's Greenhouse Gas Equivalencies Calculator as of December 31, 2024. Does not include Vivint Solar. (3) Interstate Renewable Energy Council’s (IREC) National Solar Jobs Census 2023. VALUE TO CUSTOMERS ➔ We have delivered more than $1.3 billion in savings for our customers since 2007.(1) ➔ Storage provides premium power, including backup capabilities to enable customers to power through storms. VALUE TO SUNRUN ➔ Typically 20- or 25-year customer relationship which can be monetized beyond core solar energy product. ➔ Typically 20- or 25-year value stream is financed upfront to fully cover creation costs and generate cash immediately. VALUE TO SOCIETY ➔ Residential solar and storage is a cost-effective way to modernize the country’s infrastructure to make it more resilient, affordable and environmentally sustainable. ➔ Sunrun’s systems have prevented greenhouse-gas (GHG) emissions totaling 21.6 million metric tons of carbon dioxide equivalent (CO2e), an amount comparable to eliminating more than 55 billion passenger-vehicle miles.(2) ➔ The solar industry employs ~279,000 workers in America and is estimated to be one of the fastest growing segments of the economy.(3) Investor Presentation 1,137,913+ Customers 8.2 Gigawatts Networked Solar Energy Capacity 3.7 Gigawatt hours Networked Storage Capacity $1.9 Billion Annual Recurring Revenue
Page 5
5 Much higher penetration proven In markets where the value proposition was evident first, like Hawaii and California, penetration has reached 33% and 24%, respectively, and growth continues.(2) Even assuming a 15% average annual industry growth rate for the next 10-years leads to ~19% penetration of U.S. houses. Our strong value proposition supports a much greater number. Massive & underpenetrated opportunity 0.2m Number of Homes with Solar 5.2m 18.6m 2012 Today 2034E % Penetration of 90m Addressable Homes (1) 0.3% ~6% ~19% Investor Presentation (1) Today’s housing stock estimate is based on the U.S. Census 2023 American Community Survey by State using occupied single-unit housing using average state occupancy estimates. Number of homes with solar is based on EIA Form 861M Residential PV Customers ( through December 2023) and Wood Mackenzie Research. Estimated 2034 market penetration assumes housing units grow at 0.7% (Census data). Sunrun internal estimates for 2025 and beyond. (2) State penetration data uses EIA Form 861M Residential PV Customers (through December 2023) and Wood Mackenzie Research. Housing stock uses the US Census 2023 American Community Survey by State using occupied single-unit housing using average state occupancy estimates.
Page 6
6 Sunrun is the #1 residential market leader A disciplined strategy and long track record of growth has resulted in a leading market share position(1) With approximately 20% share of residential solar installation volumes, and 36% share of subscription volumes(2) (‘TPO’ or solar leases & PPAs) See Appendix for Glossary of Terms. (1) Wood Mackenzie Research and Sunrun’s reported Solar Energy Capacity Installed. Trailing twelve months through Q2 2025. (2) Based on Wood Mackenzie/SEIA US Solar Market Insight Report (September 2025) and Sunrun’s reported Solar Energy Capacity Installed for Subscribers. Trailing twelve months through Q2 2025. (3) Sunrun’s Networked Solar Energy Capacity as of December 31, 2024 at a 14% utilization rate for illustrative purposes. 2024 Residential Retail Sales (MWhrs) of Electricity from EIA. Annual spend from EIA based on sales of electricity to residential customers for 2024. And yet remains <1% of total U.S. residential electricity market(3) Operating scale and strong network effects provide significant competitive advantages $246 billion annual spend(3) Investor Presentation 0.6% Sunrun US Residential Electricity Sales
Page 7
7 (1) Energy Information Agency. Average price per KWhr of electricity for the U.S. residential sector. Rate reflects changes from December 2021 to December 2024. (2) PG&E General Rate Case (GRC) Application (April 2023). (3) Bloomberg: Company Reported Capex and Depreciation in 2023. (4) Climate Central: “Surging Power Outages and Climate Change,” (September 2022). (5) Projected retail rates based on historic actual CAGR adjusted for current market conditions and wholesale rates based on 2% inflation. (6) Energy Information Agency. Average price per KWhr of electricity for the U.S. residential sector. Rate reflects changes from December 2021 to December 2024. Includes Sunrun’s top 15 markets. (7) Energy Information Agency. Average price per KWhr of electricity for the U.S. residential sector. (8) Total company functional spending of U.S. Investor-Owned Electric Companies. Source: EEI Industry Capital Expenditures with Functional Detail (July 2024). Utility pricing is increasing and reliability is declining. Solar and storage technology is improving and becoming lower cost. ➔ The price of electricity nationwide has risen 18.5% over the past three years(1), with even steeper increases in many of our top markets. ➔ In December 2023, CPUC approved PG&E’s rate increase of 19.6%(2) in California, effective January 1, 2024. ➔ In 2023, the major U.S. utilities spent over $160 billion in capital investments, exceeding depreciation expense by 2.5x.(3) ➔ Yet, people are increasingly facing outages from wildfires, hurricanes and major storms. The average annual number of weather-related power outages has increased by almost 80% over the last decade.(4) ➔ More than 70% of America’s transmission lines and large power transformers are at least 25 years old, and utilities will need to spend an exorbitant $2.2 trillion on infrastructure upgrades during the next 20 years in order to keep our system up and running. These costs will ultimately be passed to consumers. ➔ With the expected capex trends, significant increases are likely even if wholesale prices fall.(5) Retail Electricity Price Increases Over The Past Three Years in Top Markets(6) Investor Presentation Cost of Utility Energy Has Been Increasing(7) Utility Spending Accelerates Trend(8) Capital Expenditures ($ billions)
Page 8
8 Solar and battery costs have declined The costs of solar modules and batteries have declined significantly over the last ten years and market research predicts that these trends will continue.(1)(2) Investor Presentation Cost of solar modules -92% Cost of batteries -89% Market researchers forecast the cost of installed solar panels will continue to decline long-term by 34% while the cost of batteries declines 64% over the next 10 years.(2) (1) Historic solar costs: Data prior to 2020 uses Bloomberg New Energy Finance Survey Multicrystalline Silicon Module Overall Average Spot Price; Starting in 2020, data source is PV Infolink Standard Monocrystalline Silicon Module Price from Bloomberg; Historic battery cost estimates according to Bloomberg New Energy Finance Annual Battery Survey (November 2023). (2) Projected Cost of Panels and Batteries: Bloomberg New Energy Outlook 2019.
Page 9
9 Sunrun’s Vision ➔ Sunrun aims to become the preferred clean energy provider to power customers’ lives. We will integrate solar, battery storage, electrification and distributed power plant offerings into a smart solution for each home and community. ➔ Full home electrification enables decarbonization and increases the need for a service provider. More fuel switching results in larger systems, which have high incremental returns to Sunrun. Sunrun is the trusted provider to enable the transition to clean energy Rooftop solar power Batteries Electric vehicle chargers Smart Circuits Heat pumps for heating & cooling Heat pump water heater Smart thermostat Induction cooktop Smart bulbs Smart plugs 1 2 3 4 5 6 7 8 9 10 Investor Presentation
Page 10
10 Electric vehicle adoption increases energy needs & enhances the value of our offering (1) Wood Mackenzie “Electrification Impact on North America’s Electricity Demand” report published June 2022. (2) Green Car Reports, August 2015. Electric Car Drivers Tell Ford We'll Never Go Back To Gasoline. (3) Clean Technica, December 2019. EV & Rooftop Solar Ownership Report. (4) Energy.gov, Batteries Charging And Electric Vehicles. (5) Cox Automotive Electric Vehicle Sales Report (January 2024). Investor Presentation ➔ Electric vehicle energy needs expected to grow at an 18% CAGR as EVs reach >70% of new vehicle sales.(1) ➔ More than 80% of EV owners say they would consider installing solar panels at their homes, or already have them.(2) ➔ 30-40% of people who own EVs have installed rooftop solar.(3) ➔ Most EV owners do more than 80% of their charging at home and need ~3 kW additional solar capacity.(3)(4) ➔ ~1.2 million electric vehicles were sold in the US in 2023, up 46% from 2022.(5) ➔ In May 2021, Sunrun partnered with Ford to serve as the preferred installer of Ford Intelligent Backup Power for the Ford F-150 Lighting. Sunrun offers the installation of the 80-amp Ford Charge Station Pro and the Home Integration System, along with providing options for solar and storage systems. ➔ Customers will need to equip their home with the 80-amp Ford Charge Station Pro and Home Integration System to unlock bidirectional power flow and future energy management solutions. The Home Integration System—designed and developed together with Ford—can be purchased exclusively through Sunrun.
Page 11
11 The Sunrun network can deliver distributed power plants to transition to a decentralized power grid The traditional energy system is built to accommodate peak capacity, which is reached only a tiny fraction of the year. California Load Duration Curve Highlights Opportunity(1)Distributed Power Plants Virtual Transmission Capacity Virtual Distribution Capacity See Appendix for Glossary of Terms. (1) California ISO, Historical EMS Hourly Load for 2022. (2) Utility capex Edison Electric Institute's Wall Street Briefing published April 2023. Rocky Mountain Institute “The Economics of Demand Flexibility” published in August 2015 estimates $13 billion or more of spend could be met from flexible, distributed resources. (3) As of September 30, 2025. Avoids substation overhauls by dropping excess load when needed locally. Provides generation and reliability in congested areas where new transmission lines are difficult to build. Provides clean, cost-effective peaking capacity. ➔ Home solar and batteries are more flexible and efficient than traditional centralized infrastructure. Utilities spend more than $130 billion per year in capital investments and we believe $13 billion could be replaced by distributed resources.(2) ➔ Sunrun can provide valuable grid services from our fleet of networked solar and storage systems, mitigating the need for utilities to invest in additional infrastructure, driving benefits for all users of the grid, while also providing incremental recurring revenue opportunities for Sunrun and incremental value to our customers for participating in these programs. ➔ Sunrun has now installed more than 217,000 battery systems representing 3.7 GWhrs of Networked Storage Capacity.(3) Investor Presentation 14 GWs of system capacity is used less than 5% of the time.
Page 12
12 Leading customer acquisition capabilities Sunrun’s diverse customer acquisition channels drive reach advantages today and investments in brand and customer experience will augment advantages over time. Affiliate Partners Leverage tools and brand to offer leading product solutions to customers (1) Customers figure is as of September 30, 2025. Investor Presentation Direct Marketing Best in class direct to consumer Direct to Home Experts in consultative engagements Strategic Partners National brands & retailers such as Lowe’s and Ford deliver broad reach & increased brand awareness Referral Network 1 million+ Sunrun Customers today and growing(1)
Page 13
13 Value Potential Progress Current Contracted Net Subscriber Value ~$12,000+ ➔ Expected to increase Renewals at end of initial subscription term ~$3,000 to ~$4,500 per customer ➔ Initial pilot completed with initial “early look” offer; initial results indicated likely realization exceeding values currently embedded in our GEA metric today Repowering systems with new equipment to meet growing energy needs of home ~$5,000 to ~$15,000 per customer ➔ Optimizing offers for customers to consider upgrading systems to meet increased energy needs at time of renewal or earlier Installing batteries on existing customers to provide energy resiliency ~$3,000+ per customer ➔ Thousands of orders so far and orders are growing rapidly. Grid services (distributed power plants) ~$2,000 or more per customer ➔ Over a dozen operating distributed power plant programs across the country ➔ Largest distributed power plant operating in CA; launched offering with Tesla in Texas and more to follow Home electrification offerings, such as electric vehicle charging infrastructure $100 to $1,000+ per customer ➔ Thousands of orders for advanced electric vehicle charging infrastructure, including Ford Charge Station Pro Increasing customer value proposition and margin opportunity by expanding offering TRADITIONAL GRID SUNRUN SOLAR SERVICE SUNRUN RECHARGEABLE SOLAR BATTERY SYSTEM SUNRUN ENERGY MANAGEMENT AND DISTRIBUTED POWER PLANT Ultimate customer value should significantly exceed initial contracted Net Subscriber Values Investor Presentation
Page 14
14 Contracts are written to typically renew annually after the initial contract term at 90% of the prevailing utility rate. Renewal values in metrics assume customers renew at a discount to the rate in effect at the end of the initial contract. Post-contract customer values & renewal assumptions embedded in metrics may be conservative Investor Presentation ➔ Advantaged position compared to competitors: The marginal cost of delivering energy during the renewal period will likely be lower than a new system (whether installed by us or a competitor). Further, units of electricity do not become obsolete, thus it is unlikely customers will feel compelled to upgrade to the “next version.” ➔ No cross-selling / upselling / repowering assumed: We have not included any other intangible benefits associated with the customer relationship such as expanded systems, batteries, or ancillary services such as electric vehicle charging systems. With increased electrification (including electric vehicles), it is likely consumers will want more electricity, not less, and Sunrun will be in a cost-advantaged position to provide this option. For Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, only the minimum contracted payment is included in Contracted Cash Flows. ➔ Remaining asset value beyond renewal assumption: Sunrun assumes only 5-years of renewals following a 25-year contract, or a 30-year total customer relationship, despite our solar assets’ useful lives extending 35 years or more, as determined by independent engineers. Customers may choose to purchase systems or renew. ➔ Contracts auto-renew at a discount to utility rates, which may escalate much faster: The renewal portion of our reported metrics assumes that 100% of Subscribers renew at 90% of the contractual PPA rate in effect at the end of the initial contract term. In reality, customer contracts are written to typically automatically renew at a rate equal to 90% of the prevailing utility rate. This means that, assuming utility rates escalate at a faster rate than our typical contract escalators, approximately ~50% of our customers could not renew and Sunrun would still effectively realize the renewal value presented in our reported metric.(1) See Appendix for Glossary of Terms. (1) Assumes starting discount to utility of 20% with a 4% annual escalation of utility prices compared to our portfolio average of 2% for Sunrun customers.
Page 15
15 Sunrun is the first clean energy company to surpass 1 million residential solar customers, now providing significant benefits through delivery of clean energy to 1 million families or approximately 3 million people. Sunrun’s near and long-term greenhouse gas emissions reduction targets, including a 2050 net-zero goal, have been officially validated by the Science Based Targets initiative (SBTi). Our company’s net-zero target is the most ambitious designation available through the SBTi process. As part of our commitment to being global citizens and doing business legally and ethically, we adopted a robust Vendor Code of Conduct on January 1, 2019. In 2024, Sunrun was honored with numerous awards for our commitment to fostering a better workplace, advancing our business, and contributing positively to our planet. ➔ TIME100 Climate List of Most Influential Leaders In Climate: Mary Powell ➔ Good Housekeeping Sustainability Innovator ➔ Vet Indexes: Recognized Employer ➔ Extel: Best CEO, Best CFO, and Best Investor Relations Team for Alternative Energy ➔ Comparably’s Happiest Employees ➔ Comparably’s Best Company for Career Growth ➔ Comparably’s Best Company for Sales Since 2007, Sunrun’s systems have prevented greenhouse gas (GHG) emissions totaling 21.6 million metric tons of carbon dioxide equivalent (CO2e) Please see Sunrun’s 2024 Impact Report, available on the company’s Investor Relations website for more information, including information on the calculations and statistics referenced above: investors.sunrun.com/esg Sunrun is making an impact Our approach is to benefit all of our stakeholders: our customers, our employees, and the communities in which we operate, as well as our business and financial partners. GHG Emissions & Carbon Intensity We generate positive carbon returns Because Sunrun’s systems have a lifespan of 30 years or longer, they prevent the release of harmful GHGs for 95% of their lifetime. Carbon Payback Period (2 years) For All Scope 1, 2 & 3 Emissions Positive Carbon Return (28 years+)
Page 16
16 PLATFORM TECHNOLOGY Sunrun leads the industry with advanced solar system design, monitoring, and customer engagement tools. Sunrun is investing in advanced energy service capabilities. Moat increasing with growing customer engagement in energy selection, advanced regulatory constructs (such as time-variable pricing), and energy storage integration. Expanding moat with technology capabilities We have invested over $200 million in R&D(1) to usher the change to a distributed energy system while building more entry barriers (1) Cumulative Research and Development Expenses from 2015 through 3Q2025. Investor Presentation
Page 17
17 Sunrun is led by seasoned professionals with extensive industry experience MARY POWELL Chief Executive Officer RACHIT SRIVASTAVA Chief Technology Officer JEANNA STEELE Chief Legal Officer & Chief People Officer CHANCE ALLRED Chief Experience & Direct Sales Officer PAUL DICKSON President & Chief Revenue Officer PATRICK KENT Chief Field Operations Officer DANNY ABAJIAN Chief Financial Officer Investor Presentation
Page 18
18 Measuring Value Creation
Page 19
19 Nearly two decade operating history delivering consistent growth and value creation Investor Presentation Systems Perform Sunrun provides performance guarantee for peace of mind Strong Customer Experience A+ Rating with the Better Business Bureau Customers Pay Their Bills ~1% cumulative loss rate on billings(1) Transferring Service Is Easy ~100% service transfer Net Subscriber Value recovery rate(2) See Appendix for Glossary of Terms. (1) Data includes assets originated by Sunrun Inc. and its channel partners through June 30, 2024. Losses include uncollected recurring billings 5 months after invoice date, write downs, and appeasement credits. (2) As of December 31, 2024 and excludes Vivint Solar. Recovery percentage is equal to the (i) the sum of (a) the remaining customer agreement cash flows after the service transfer discounted at 6% and (b) prepayments received in connection with the service transfer, divided by (ii) the remaining customer agreement cash flows before the service transfer discounted at 6%. Based on analysis of completed service transfers for monthly customers; Recoveries >100% arise from prepayments. (3) Customers figure is as of September 30, 2025. (4) Networked Solar Capacity as of September 30, 2025 and gives pro forma effect to our acquisition of Vivint Solar from 2012 to 2019 and includes Vivint Solar in 2020. 2007-2011 reflects legacy Sunrun standalone because Vivint Solar was founded in October 2011. (5) Networked Storage Capacity as of September 30, 2025. ➔ 1,137,913+ CUSTOMERS(3) ➔ Networked Solar Capacity of 8,188 MWs(4) ➔ Networked Storage Capacity of 3.7 Gigawatt hours(5)
Page 20
20 Sunrun delivered strong growth in top-line Aggregate Subscriber Value and bottom-line Contracted Net Value Creation, producing substantial Cash Generation & increased book value 20 $1.6 billion Aggregate Subscriber Value in 3Q25 +10% year-over-year (1) See Appendix for a reconciliation of Cash Generation, a non-GAAP metric, to change in Net Change in Cash and Restricted Cash. See Appendix for glossary of terms. $279 million Contracted Net Value Creation in 3Q25 +35% year-over-year $1.21 per share $108 million Cash Generation(1) in 3Q25 Sixth consecutive quarter of positive Cash Generation Trailing 4 quarter Cash Generation of $224 million 231.0 million weighted average basic shares in 3Q25 $3.4 billion Contracted Net Earning Assets inclusive of net debt as of 9/30/2025 $14.56 per share Includes $709 million of unrestricted cash
Page 21
Investor Presentation ➔ Margin outcome driven by strong cost control and efficiency, growth in higher-value offerings (including Storage and Flex), and realization of higher ITC levels ➔ Customer Additions grew 3% year-over-year in Q3. Customer Additions with Storage grew 20% year-over-year in Q3 as Storage Attachment Rate reached 70% Continued strong margin execution, with Upfront Net Subscriber Value exceeding $3.5k, representing a 7% margin, expanding 5 ppt y/y 21 (1) See Appendix for a reconciliation of Aggregate Creation Costs, a non-GAAP metric, to Total Operating Expenses. See Appendix for glossary of terms. Upfront Net Subscriber Value Represents, on a per Subscriber basis, estimated proceeds from tax equity, non-recourse project debt, upfront incentives, and proceeds from Non-Retained or Partially Retained Subscribers for systems deployed in the period, less Aggregate Creation Costs(1), which represents CapEx & Adjusted OpEx Percentages represent Upfront Net Subscriber Value as a percentage of Contracted Subscriber Value Upfront Net Subscriber Value %
Page 22
Investor Presentation US power demand is expected to increase; Sunrun offers solutions to the grid’s power needs & to consumers seeking relief from rising rates 22 (1) Source: S&P Global Commodity Insights, “US National Power Demand Study” (March 2025). Data depicts US Lower 48 net on-grid electricity demand. (2) Energy Information Agency. Average price per KWhr of electricity for the U.S. residential sector. Rates reflect changes from December 2021 to December 2024. Includes Sunrun’s top 15 markets. Electricity demand forecasted to increase 40% by 2040; necessitating >1,000 GW of new capacity(1) The price of electricity nationwide already has risen ~19% over the past 3 years, with even steeper increases in many of our top markets(2) TWh Electricity prices has increased at a 9% CAGR over the last 5 years in Sunrun’s markets
Page 23
Investor Presentation Sunrun is the nation’s largest home-to-grid distributed power plant operator, providing critical utility-scale grid services 23 See Appendix for glossary of terms. ➔ Distributed home-to-grid power plants are reliable, dispatchable resources. Sunrun’s power plants don’t take up land or need new transmission lines to be constructed as they are located on the existing built environment, where energy is consumed. ➔ Power demand in the US is growing from AI, data centers and domestic manufacturing. Capacity prices are rising rapidly, and “traditional” centralized generation plants takes years to permit and build. Sunrun is providing critical power plant resources to meet urgent energy needs today. Sunrun has recently signed agreements to be a distributed power plant provider to retail electricity providers, and has seen a significant increase in interest from strategic energy companies that serve load. ➔ Customer enrollments in home-to-grid distributed power plant programs has grown >400% y/y to more than 106k customers. We expect this cash flow stream to grow rapidly in the coming years. Based on current activities, we are finding that the estimate of $2,000+ NPV per participating customer is not only realistic, but likely conservative. 70% of new customers now have storage, which is capable of dispatching power to the grid when called upon. ➔ Sunrun expects to have over 10 GWh of dispatchable capacity online by the end of 2028. 17 Active programs >106k Customers enrolled in grid service programs 416 MW Power delivered during dispatches over last year 3.7 GWh Networked Storage Capacity 217,000+ Storage & Solar Systems Installed Current Home-to-Grid Distributed Power Plant Programs Massive Opportunity for Continued Expansion As of 9/30/2025
Page 24
Investor Presentation Sunrun is positioned to continue to generate strong financial returns following the passage of the 2025 Budget Bill 24 48E Investment Tax Credits (ITC) maintained for storage portion of projects through 2033 at 30%+ while ITCs for solar portion are maintained through 2027 (with ability to complete projects under construction through ~2030 under current guidance) ✓ Sunrun is a storage-first company with 70% Storage Attachment Rate in 3Q25. ✓ Customer-owned system ITCs for cash & loan customers who claim credits under section 25D of the tax code sunset after December 31, 2025. Sunrun & our tax equity partners claim Section 48E credits for Subscribers, and Subscribers represented 92% of our 3Q25 volume (only 8% of volume is for customers who purchase and claim 25D credits). ✓ All 10-20% ITC adders (Domestic Content, Energy Communities, and LMI) remain available. ✓ ITC transferability remains, allowing broad participation for ITC monetization. ✓ Workable Foreign Entity of Concern (FEOC) provisions as Sunrun is already predominantly using equipment manufactured in the US. ✓ Residential storage+solar is better positioned than utility scale, given fast cycle times largely alleviating the concern on “placed in service” deadlines for single projects, and is not subject to utility-scale permitting issues. ✓ Sunrun has already commenced construction on projects to retain the full solar portion ITC value through 2029 at current volume run rate and plans to commence construction on additional projects prior to July 2026 to lengthen our runway through 2030. 2025 Solar-portion ITC based on placed in service date ITC adders based on qualification (Domestic Content, Energy Communities, LMI) 30% 0% to 40% 2026 2027 2028 2029 2030 2031+ No Impact to ITC Levels No Impact to ITC Levels (assuming Solar-portion Projects Commenced Construction pre July 2026) 2025 Storage-portion ITC based on construction commencement date ITC adders based on qualification (Domestic Content & Energy Communities) 30% 0% to 20% 2026 2027 2028 2029 2030 2031 2032 2033 2034 No Impact to ITC Levels 2035 30% 0% to 40% 30% 0% to 40% 30% 0% to 40% 30% 0% to 40% 30% 0% to 40% Solar-portion ITC if construction commenced prior to July 2026 30% 0% to 20% 30% 0% to 20% 30% 0% to 20% 30% 0% to 20% 30% 0% to 20% 30% 0% to 20% 30% 0% to 20% 22.5% 0% to 15% 15% 0% to 10% Solar portion of 48E Investment Tax CreditStorage portion of 48E Investment Tax Credit 2036+ 30% 0% to 20%
Page 25
Investor Presentation Sunrun has a leading share of installations given strength of subscription offering and storage capabilities 25 See Appendix for glossary of terms. (1) Based on Ohm Analytics data for the U.S. residential storage market (November 2025), which has been revised and supersedes certain U.S. residential storage market data within its 2Q25 DG Solar and Storage Report (September 2025), and Sunrun’s reported Storage Capacity Installed. (2) Based on Ohm Analytics Q2 2025 DG Solar and Storage Report (September 2025) and Sunrun’s reported Solar Capacity Installed (3) Based on Wood Mackenzie/SEIA US Solar Market Insight Report (September 2025) Overall Industry Mix of Subscriptions Increasing(3) Sunrun Solar Install Volume Share(2)Sunrun Storage Install Volume Share(1) ➔ We expect the 25D ITC sunset on 12/31/2025 may distort Sunrun’s share of installations through the rest of 2025, given potential pull-in of demand for the cash/loan segment of the market. ➔ Sunrun expects to gain share in 2026 given the company’s focus on a subscription offering and storage-first strategy to be the leading home-to-grid dispatchable distributed power plant operator.
Page 26
Investor Presentation Growth expected in 2026 as we maintain our margin focus 26 Subscription (‘TPO’) offerings represent >50% of industry install volumes(1) ➔ Sunrun poised to grow in 2026, at improving economics, even as industry volumes likely decline ➔ Cash & loan customer ITC sunsets at the end of 2025 while Subscriptions (95% of Sunrun’s Q3 Solar Capacity Installed volume) continue to benefit from a 30-70% investment tax credit ➔ Sunrun goes to market predominantly with a direct vertically-integrated approach with in-house sales & installation capacity (approx. 2/3 of volumes) along with strategic affiliate partners. ➔ Sunrun has chosen not to employ a “long-tail” or inorganic “roll up” strategy. Sunrun’s direct operations and deep integration with strategically aligned partners facilitates the best customer experience and the highest quality asset origination. Sunrun is focused on being the leading distributed power plant operator. Sunrun expects to grow in 2026 given we are the leading distributed power plant operator Sunrun represents >1/3 of the Subscription (‘TPO’) volumes(1) Ohm’s projection for entire industry(2) 2026 Forecast Sunrun -26% Positive volume growth & margin expansion (1) Based on Wood Mackenzie/SEIA US Solar Market Insight Report (September 2025) and Sunrun’s reported Solar Capacity Installed for Subscribers. Sunrun share of TPO volumes represents the trailing four quarter volume through 2Q25. (2) Based on Ohm Analytics Q2 2025 DG Solar and Storage Report (September 2025) Wood Mackenzie projection for entire industry(1) -13%
Page 27
Investor Presentation 27 Net Subscriber Value increased year-over-year to $13,205 Note: CapEx and OpEx are adjusted to include and exclude certain items. See appendix for a reconciliation. See Appendix for glossary of terms and accompanying notes. ➔ Subscriber Additions were 30,104 in 3Q25, a decrease of 1% year-over-year. ➔ Net Subscriber Value expanded year-over-year to $13,205 driven by a strong Storage Attachment Rate at 70%, ITC levels of 42%, increasing Flex mix, and continued cost efficiency efforts. ➔ Subscriber Value growing faster than Creation Costs, with efficiency improvements more than offsetting the increased costs associated with increasing storage attachment rates. Subscriber Value +11% y/y, -3% q/q Creation Costs +4% y/y, +6% q/q Net Subscriber Value +38% y/y, -22% q/q Unit-level Economics $ per Subscriber Addition $ per Subscriber Addition $ per Subscriber Addition
Page 28
Investor Presentation 28 Net Value Creation increased to $398 million in Q3, representing $1.72 per share ➔ Aggregate results are the average unit economics multiplied by the number of units and represent enterprise level gross value, total asset-origination related costs (including overhead), and net value being created on an unlevered basis. ➔ Aggregate Subscriber Value increased 10% y/y to $1.6 billion while Aggregate Creation Costs increased 3% to $1.2 billion. Aggregate Subscriber Value +10% y/y, +2%% q/q Aggregate Creation Costs +3% y/y, +11% q/q Net Value Creation +37% y/y, -19% q/q $ millions $ millions $ millions Aggregate Value & Costs Note: CapEx and OpEx are adjusted to include and exclude certain items. See appendix for a reconciliation. See Appendix for glossary of terms and accompanying notes.
Page 29
Investor Presentation Year-over-year unit margin drivers: Contracted Subscriber Value increased 9%: ➔ driven by +5 pts higher ITC achievement ➔ Favorable volume/product mix (e.g. storage attachment rate, larger system sizes, Flex mix) Creation Costs increased 4%: ➔ 8% higher installation costs driven by higher Storage Attachment Rate ➔ 5% lower customer acquisition (S&M) and overhead (G&A + R&D) costs Contracted Net Value Creation increased to $279 million as Subscriber Additions were approximately flat, Contracted Subscriber Value increased 9% and Creation Costs increased 4% year-over-year 29 See Appendix for glossary of terms. 3Q24 4Q24 1Q25 2Q25 3Q25 Per Unit Contracted Subscriber Value $44,551 $48,273 $48,727 $49,919 $48,507 (Creation Costs) $(37,756) $(38,071) $(41,817) $(36,887) $(39,241) Contracted Net Subscriber Value $6,795 $10,202 $6,910 $13,032 $9,266 x Subscriber Additions 30,348 30,709 23,692 28,823 30,104 Aggregate Value Contracted Net Value Creation ($ millions) $206.2 $313.3 $163.7 $375.6 $278.9 Underlying Attributes Storage Attachment Rate 60% 62% 69% 70% 70% Average ITC Level 37.7% 39.8% 43.6% 42.6% 42.4% Discount Rate (observed project-level capital cost) 7.1% 7.3% 7.5% 7.4% 7.3% Contracted Net Value Creation ($ millions)
Page 30
Investor Presentation Upfront Net Value Creation of $106 million in Q3 30 See Appendix for glossary of terms. $ millions 3Q24 4Q24 1Q25 2Q25 3Q25 Aggregate Contracted Subscriber Value $1,352 $1,482 $1,154 $1,439 $1,460 x Advance Rate on Contracted Subscriber Value (estimate) 87.2% 85.9% 86.9% 85.3% 88.2% = Aggregate Upfront Proceeds (estimate) $1,180 $1,274 $1,003 $1,228 $1,287 (Aggregate Creation Costs) $(1,146) $(1,169) $(991) $(1,063) $(1,181) = Upfront Net Value Creation $34 $105 $12 $165 $106 Cash Generation $2 $34 $56 $27 $108 Note: Conversion of Upfront Net Value Creation to Cash Generation will be impacted by project finance transaction timing and ultimate terms, parent capital interest costs & working capital items. $ per share (weighted average basic shares in period) 3Q24 4Q24 1Q25 2Q25 3Q25 Contracted Net Value Creation per share $0.92 $1.39 $0.72 $1.64 $1.21 Upfront Net Value Creation per share $0.15 $0.47 $0.05 $0.72 $0.46 ➔ Sunrun raises non-recourse capital against the Retained Subscribers we originate, including monetization of tax attributes from tax equity partners and non-recourse senior & subordinated debt against future Retained Subscriber cash flows along with customer prepayments & state incentives. Sunrun also obtains proceeds from the sale of Non-Retained or Partially Retained Subscribers. Together, these proceeds cover all-in Aggregate Creation Costs such that we can produce Cash Generation while also retaining a valuable equity position and/or upside opportunities from the underlying assets and customers. ➔ Transaction timing and working capital will influence in-period conversion of the accrual Upfront Net Value Creation to Cash Generation. Aggregate Contracted Subscriber Value Adjusted OpEx Upfront Net Value Creation Proceeds from sale of Non-Retained or Partially Retained Subscribers CapEx Cash Generation X Advance Rate (Aggregate Creation Costs) Aggregate Upfront Proceeds - After working capital, parent interest expense and transaction timing Estimated upfront net cash proceeds = Tax Equity Asset-backed non-recourse debt Prepayments & Upfront Incentives Retained Subscribers Non-Retained or Partially Retained Subscribers
Page 31
Investor Presentation Net Earning Assets now at $8.2 billion 31 See Appendix for glossary of terms. ➔ Contracted Net Earnings Assets at $3.4 billion
Page 32
Investor Presentation Sunrun is generating cash and paying down recourse debt 32 See Appendix for glossary of terms. Cash Generation $ millions Repaying Recourse Debt $ millions Note: 2H25E Cash Generation reflects the achievement of 2025 guidance midpoint. Note: Gross balances reflected in chart, excluding unamortized debt discounts.
Page 33
Investor Presentation We continue to achieve strong capital markets execution 33 (1) Recourse debt balance as of 9/30/2025 is net of unamortized debt discount of $10 million. See Appendix for glossary of terms. ➔ We have a strong track record of attracting low-cost capital from diverse sources. Our access to capital markets puts us in a position to offer more advantageous financing options to consumers while creating long-term value for investors. ➔ We have demonstrated industry-leading execution throughout our history, with the market and rating agencies recognizing both the high quality of residential solar assets as well as our track record as a sponsor. Our strong project finance runway has allowed us to be selective in timing capital market activities ➔ Closed transactions and executed term sheets (inclusive of agreements related to Non-Retained or Partially Retained Subscribers) provide us with expected tax equity capacity or equivalent to fund approximately 550 megawatts of projects for Subscribers beyond what was deployed through Q3. ➔ We also have $811 million in unused commitments available in our non-recourse senior revolving warehouse loan to fund over 288 megawatts of projects for Retained Subscribers. Recourse Parent Capital Asset-level Non-recourse Capital ➔ Planning to allocate more than $100 million of Cash Generation to repaying our parent debt in 2025. Targeting exiting 2025 with total recourse debt to Cash Generation of ~2x. ➔ Excess cash to be potentially allocated to further debt repayment and/or equipment purchases. ➔ No maturities until March 2027 (aside from $5.5 million remaining of our 2026 convertible notes). ➔ Have repaid or repurchased $17 million of recourse debt during Q3 and $66 million YTD. ➔ Ended Q3 with $709 million in unrestricted cash and $798 million of recourse debt.(1) ➔ Raised $2.8 billion in senior and subordinated non recourse financing YTD. ➔ Continued to raise additional tax equity, with $2.8 billion in commitments and executed terms sheets YTD. ➔ Received $525 million tax equity contributions, $659 million in net non-recourse debt (excluding normal debt amortization), and $90 million in customer prepayments and upfront incentives in Q3. ➔ Further diversified our capital raising activities to include mix of asset sales, which also provides improved GAAP results. Revenue from the sale of Non-Retained or Partially Retained Subscribers was $115 million in Q3.
Page 34
Investor Presentation 34 Sunrun partners with top financial institutions and global asset managers to raise capital against the assets we originate Select Recent Financing Partners Tax Equity Sunrun has secured ~$2.8b in new tax equity commitments and term sheets YTD across traditional and hybrid tax equity structures ~$2.8b Non-recourse Project Debt Sunrun has raised ~$2.8b in senior and subordinated non-recourse debt financing YTD across public and private debt markets ~$2.8b Project Equity and Alternative Financing Structures ↑ Sunrun expects to engage in more outright asset monetization and joint-venture project equity structures, facilitating improved GAAP financials and diversification of capital sources, while still retaining customer relationships and ongoing upside opportunities.
Page 35
Investor Presentation In Q3, Sunrun further strengthened & diversified capital raising activities with a strategic energy infrastructure investor ➔ As discussed during Sunrun’s Q3 earnings release, Sunrun is diversifying its asset monetization strategy – historically consisting of only tax equity and non-recourse debt raised by Sunrun for assets retained on Sunrun’s balance sheet. Commencing in 3Q25, Sunrun now complements this strategy with an alternative structure where we sell a portion of newly originated storage and solar assets, while maintaining ongoing customer relationships and service. ➔ These initiatives are the result of increasing interest in the category by strategic energy investors and our strong track record as a high-quality originator of solar and storage assets, along with our desire to improve our GAAP financial reporting and further diversify our sources of capital to fund growth. ➔ We anticipate programmatic investments by strategic entities will represent a growing portion of Sunrun’s volume on an ongoing basis. ➔ Our strong project finance runway has allowed us to be selective in timing capital market activities. Closed transactions and executed term sheets (inclusive of agreements related to Non-Retained or Partially Retained Subscribers) provide us with expected tax equity capacity or equivalent to fund approximately 550 megawatts of projects for Subscribers beyond what was deployed through Q3, which is a substantial increase compared to 210 megawatts disclosed during the 2Q earnings release. Sunrun entered into an agreement in 3Q25 to programmatically sell a portion of storage and solar systems newly originated by Sunrun to an energy infrastructure investor on a recurring basis. ✓ Efficient capital structure: Sunrun generates proceeds equal to or in excess of capital traditionally raised against newly originated assets by Sunrun in traditional tax equity and debt financing structures, and the energy infrastructure investor earns a return from the long-term contracted cash flows. ✓ Newly originated assets: No assets were in service, as all were recently installed by Sunrun. Sunrun would have utilized traditional on-balance sheet financing structures had assets not been elected to be sold through this new structure. ✓ Retained customer relationship & upside participation: Sunrun retains the servicing and customer experience relationship and other economic rights including grid services and the ability to cross-sell customers additional value-add offerings over time. ✓ Aligned to a more commonly understood financial reporting construct, with upfront recognition of revenue and costs: Proceeds Sunrun traditionally recognized as Cash Flows from Financing are instead recognized as upfront revenue pursuant to the sale terms (within Solar Energy Systems and Product Sales) and related costs are recorded as OpEx upfront (within Cost of Solar Energy Systems and Product Sales, along with Sales & Marketing etc). ✓ Flexibility maintained: Sunrun elected to pursue this monetization path in Q3 for a portion of newly originated assets, and will continue to utilize structures best suited for long-term value creation. 35 + Leading US Energy Infrastructure Investor
Page 36
Investor Presentation Strong economics for both traditional on-balance sheet financing for Retained Subscribers and new structure for Non-Retained or Partially Retained Subscriber Additions in 3Q25 36 See Appendix for glossary of terms. Q3 Non-Retained or Partially Retained Subscriber Additions Q3 Retained Subscriber Additions Q3 Total Subscriber Additions System Attributes: Subscriber Additions 2,905 (9.6% of Subscriber Additions) 27,199 (90.3% of Subscriber Additions) 30,104 Subscriber Additions Storage Attachment Rate 64% 75% 74% for Subscriber Additions (70% of Customer Additions) Average Solar System Size 8.6 kW 7.4 kW 7.5 kW Economics: $ millions or per Non-Retained or Partially Retained Subscriber $ millions or per Retained Subscriber $ millions or per Subscriber Aggregate Contracted Subscriber Value & Contracted Subscriber Value $141.2 million or $48,612 per Subscriber $1,319 million or $48,496 per Subscriber $1,460 million or $48,507 per Subscriber Advance Rate on Contracted Subscriber Value 100.0% 86.9% 88.2% Aggregate Upfront Proceeds and GAAP Revenue characteristics $141.2 million or $48,612 per Subscriber in Revenue and expected upfront proceeds 82% or $115.1 million recognized in Q3, with $26.1 million expected in future periods, typically within 1-6 months of installation activities Revenue and proceeds timing dependent on revenue recognition criteria $1,146 million in Aggregate Upfront Proceeds or $42,138 per Subscriber in estimated upfront proceeds Presentation of GAAP revenue limited only to an average of 1/100 of a 25 year lease or PPA agreement once systems have reached permission to operate Proceeds timing dependent on tax equity tranching, ITC transfer agreement payment timing, and ABS transaction timing $1,287 million in Aggregate Upfront Proceeds or $42,763 per Subscriber in estimated upfront proceeds Upfront Net Subscriber Value Equal to or better than Retained Subscriber Additions with mid to high single-digit Upfront Net Subscriber Value as a percentage of Contracted Subscriber Value Mid to high single-digit Upfront Net Subscriber Value as a percentage of Contracted Subscriber Value 7.3% Upfront Net Subscriber Value margin as a percentage of Contracted Subscriber Value Future Value Opportunities Accruing to Sunrun ● Grid Services / Distributed Power Plants ● Service ● Cross-selling or upselling customers (e.g., selling storage) ● Referrals Note: These future value opportunities for Q3 deployments are not included in any Subscriber Value, Gross Earning Assets or Net Earning Assets metric. ● Grid Services / Distributed Power Plants ● Service ● Cross-selling or upselling customers (e.g., selling storage) ● Referrals ● Renewals ● Refinancing
Page 37
Investor Presentation Guidance & Outlook 37 See Appendix for glossary of terms. Aggregate Subscriber Value Contracted Net Value Creation Cash Generation 4Q 2025 Full-year 2025 $1.33 to $1.63 billion ➔ Represents 5% decline year-over-year at the midpoint $5.7 to $6.0 billion ➔ Unchanged from prior guidance ➔ Driven by growth in both Subscriber Value & Subscriber Additions ➔ Represents 14% growth year-over-year at the midpoint $182 to $482 million ➔ Represents 6% growth year-over-year at the midpoint $1.0 to $1.3 billion ➔ Unchanged from prior guidance. ➔ Represents 67% growth year-over-year at the midpoint $60 to $260 million ➔ Represents the 7th consecutive quarter of positive Cash Generation. $250 to $450 million ➔ Midpoint of $350 million reiterated, range narrowed from prior guidance of $200 to $500 million. ➔ Project finance transaction timing, working capital changes, cost of capital and volume realization are primary drivers for the range. As is inherent in our business, project finance timing & working capital changes can influence period-to-period Cash Generation. Note: Guidance provided on November 6, 2025 in the 3Q 2025 earnings release. The company assumes no obligation to update such guidance and the guidance is effective only as of November 6, 2025, not the date of this presentation.
Page 38
Appendix
Page 39
Investor Presentation Key Operating Metrics Summary (1) See Appendix on page 45 for a reconciliation of Aggregate Creation Costs, a non-GAAP metric, to Total Operating Expenses. See Appendix for glossary of terms and accompanying notes. 39 An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com. 1
Page 40
Investor Presentation See Appendix for glossary of terms and accompanying notes. 40 Key Operating Metrics: Volume Additions in Period An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
Page 41
Investor Presentation See Appendix for glossary of terms and accompanying notes. 41 Key Operating Metrics: Creation Costs in Period An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
Page 42
Investor Presentation See Appendix for glossary of terms and accompanying notes. 42 Key Operating Metrics: Value Creation in Period An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
Page 43
Investor Presentation See Appendix for glossary of terms and accompanying notes. 43 Key Operating Metrics: Proceeds Realized, Cash Generation, GEA & NEA An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
Page 44
Investor Presentation See Appendix for glossary of terms. 44 Metric Sensitivities An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com.
Page 45
Investor Presentation See Appendix for glossary of terms and accompanying notes. 45 Non-GAAP Reconciliation of Aggregate Creation Costs An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com. Use of Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: Aggregate Creation Costs and Cash Generation. The Company utilizes these non-GAAP measures to analyse the Company’s performance and for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s financial results as reported under GAAP. Additionally, these non-GAAP measures may not be comparable to similarly titled measures presented by other companies, thus reducing their usefulness. Accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company is not able to provide reconciliations of certain forward-looking financial measures to comparable GAAP measures because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted without unreasonable effort. The Company encourages investors to review our GAAP financial measures and to not rely on any single financial measure to evaluate our business.
Page 46
Investor Presentation See Appendix for glossary of terms and accompanying notes. 46 Non-GAAP Reconciliation of Cash Generation An Excel model containing Key Operating Metrics, financials and calculations shown in this presentation is available at investors.sunrun.com. Use of Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: Aggregate Creation Costs and Cash Generation. The Company utilizes these non-GAAP measures to analyse the Company’s performance and for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s financial results as reported under GAAP. Additionally, these non-GAAP measures may not be comparable to similarly titled measures presented by other companies, thus reducing their usefulness. Accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company is not able to provide reconciliations of certain forward-looking financial measures to comparable GAAP measures because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted without unreasonable effort. The Company encourages investors to review our GAAP financial measures and to not rely on any single financial measure to evaluate our business.
Page 47
Investor Presentation The majority of Customer Agreements and Incentives COGS is depreciation (~$621m total depreciation & amortization in 2024). This also includes operating & maintenance costs and non-capitalized costs associated with installation-related activities. A large portion of our Sales & Marketing spend is expensed in period, while it relates to customers with ~20 or ~25 years of contracted revenue. The Loss Attributable to Non-Controlling Interests is primarily driven by our monetization of the Investment Tax Credit (ITC) with our Tax Equity partners with partnership flip structures. Assume a tax investor contributes about ~$1.8 per watt in cash and then immediately receives back a tax credit worth $1.3 per watt. After receipt of the tax credit, the investor’s remaining non-controlling interest in Sunrun’s solar facility is now only $0.5 per watt, which is repaid over about 6 years through cash distributions and depreciation deductions. Like the elimination of a liability, the reduction in the tax investor’s non-controlling interest from ~$1.8 per watt to ~$0.5 per watt is income to Sunrun common shareholders. Because Sunrun received this $1.3 per watt in cash through a partnership, this income is accounted for under GAAP using the hypothetical liquidation at book value (HLBV) method as a “loss attributable to non-controlling interests,” rather than revenue. Customer Agreements and Incentive Revenue is comprised of ongoing revenue from customers under long-term agreements, amortization of prepaid systems, and incentive revenue. The value of the Investment Tax Credits (ITC) are recognized as Incentive revenue, when monetized using a pass-through financing structure. 47 Reflected in Sunrun’s 2023 and 2024 GAAP results are large one-time non-cash charges: 2023: $1.2 billion Goodwill impairment. 2024: $3.1 billion Goodwill impairment. GAAP Income Statement
Page 48
Investor Presentation Non-controlling interests represent our Tax Equity (under partnership flip structures) and Project Equity investors’ interests in our funds. Deferred revenue is primarily Customer Prepayments which are recognized over the life of the contract, typically 20 or 25 years ($950.2 million balance of Payments Received Under Customer Agreements at the end of 2024). 48 ~$14.0 billion of our debt is non-recourse project debt and solely secured by the solar assets. GAAP Balance Sheet
Page 49
Investor Presentation Contributions from NCI represent investments from (1) Tax Equity investors in partnership flip funds, where they receive the Investment Tax Credit, certain depreciation attributes, and a share of cash flows, along with (2) project equity investors, which receive a share of cash flows from the funds. In 2024, proceeds from NCI and proceeds from pass-through and other financial obligations averaged $16,762 per Subscriber Addition. These investments are the capex for our solar energy systems. Approximately 70-75% of our Creation Costs are capitalized, the rest are expensed in-period on our income statement. Cash Flow From Operations is negative as typically ~25-30% of our Creation Costs are expensed in the period, while revenue is recognized over 80 quarters or more. Additionally, we raise Debt and Project Equity to fund our growth, which covers CFO and CFI. 49 We raise non-recourse project debt on assets, which is serviced by cash flows from contracted customer payments. GAAP Cash Flow Statement
Page 50
50 Zillow conducted a study in 2019 and found that solar increases the average sales price of a home(1) Strong service transfer performance (1) Zillow (April, 2019). Homes With Solar Panels Sell for 4.1% More. (2) Sunrun fleet-wide data as of December 31, 2024 for customer agreements with monthly payments only. The sum of the percentage columns and the balance columns may not equal 100.0% or the total, as applicable, due to rounding. Excludes new home transfers, transfers that occurred prior to PTO and prepaid contracts. Includes completed service transfers with a reduction to the PPA or lease rate, and with a recovery rate less than 100%. Recovery percentage is equal to the (i) the sum of (a) the remaining customer agreement cash flows after the service transfer discounted at 6% and (b) prepayments received in connection with the service transfer, divided by (ii) the remaining customer agreement cash flows before the service transfer discounted at 6%. REASONS FOR SERVICE TRANSFERCOMPLETED SERVICE TRANSFERS & NET SUBSCRIBER VALUE RECOVERY BY YEAR (Legacy Sunrun data only) When customers move or their service is otherwise transferred to a new homeowner, Sunrun has maintained ~100% of expected contract value Data includes transfers related to Vivint Solar systems after 12/31/2021. Prior to this date, Vivint Solar completed an additional 35,553 services transfers with an average NPV recovery rate of 99%. Transfer Year Net Subscriber Value Recovery(2) Investor Presentation
Page 51
51 Residential solar market size is massive and underpenetrated today ● 90 million U.S. single family homes today(1) ● 5.2 million residential solar customers across the industry(2) ● 565,000 solar customers added in 2024(2) The penetration rate declines at current levels as ~1 million homes are built annually in the U.S.(3) In May 2018, The California Energy Commission passed rules that effectively mandate that new homes have solar panels starting in 2020. California builds approximately 110,000 new homes annually. For context, there were approximately 169,000 new residential solar customers added in California during 2024.(2) (1) Housing stock estimate is based on US Census 2023 American Community Survey Estimates by State using occupied single-unit housing using average state occupancy estimates. (2) EIA Form 861M Residential PV Customers (through December 2023) and Wood Mackenzie Research. (3) U.S. Census Bureau 2024 New Residential Construction statistics. 1,016,000 new single family home completions in 2024. Residential Solar is ~6% of the market today Projected ~19% market penetration in 2034, even after 10 years of ~15% annual industry growth <3% 3%-20% >20%MARKET PENETRATION
Page 52
52 SUN RESOURCE VARIES Modeling residential solar Key drivers of project cash flows Sunshine, utility rates, site specifics, costs The economics of a system are driven by how much energy the solar system produces (a function of the site conditions and sunshine), how much Sunrun charges for the energy (which is driven by the prevailing utility rates and local incentives which vary significantly across the country), and the cost to build systems, which also varies by location. A unit of energy we bill for is called a kilowatt hour, which is 1000 watts of power for 1 hour, abbreviated KWhr. We typically offer Power Purchase Agreements (PPAs) or Leases which stipulate the effective rate we charge per KWhr of energy the solar system produces. The amount of energy a solar system produces varies by how much sunshine the area receives, the angle of the panels on the roof, and any nearby obstructions which may cause shading. The productivity of a system is measured in Capacity Utilization Factor (%) or colloquially as “Sunhours per year”, both of which measure the amount of time a system is fully productive, on average, throughout a year. We present these utilization metrics in terms of Alternating Current (AC), which is the type of power homeowners consume, and already considers the transition of the energy from Direct Current (DC) to AC through an inverter. The unlevered returns we generate are a function of (1) the PPA price, which is typically initially set at a discount to prevailing utility power prices, (2) the upfront cost to construct the system, including module, inverter, racking, installation labor, permitting and sales expense, which can vary by region, and (3) the amount of energy the system produces, which is a function of the geographic location and associated sunshine, along with site-specific factors such as roof angles and nearby shading. For example, a 7 kilowatts sized system (7,000 watts of capacity) could produce about 10,500 KWhrs in Northern California, based on Sunhours of ~1,500/yr (a Capacity Utilization Factor of 17%). Source: ACORE, 2017 Outlook on Renewable Energy in America (Average Sunhours) INCUMBENT POWER PRICES VARY Price per KWhr, State Average Price Presented Note: Rates also vary within the same state by utility and customer tariff Source: Energy Information Agency Form 861M, 2024 YTD Average Price of Residential Electricity (data through December 2024). <$0.12 $0.12-$0.15 >$0.15
Page 53
Definitions for Volume-related Terms Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least 80% of the expected project cost (inclusive of acquisitions of installed systems). A portion of customers have subsequently entered into Customer Agreements to obtain, or have directly purchased, additional solar or storage systems at the same host customer site, and since these represent separate assets, they are considered separate Deployments. Customer Agreements refer to, collectively, solar and/or storage power purchase agreements and leases. Retained Subscribers represent customers subject to Customer Agreements for solar and/or storage systems that have been recognized as Deployments and recognized as solar energy systems on Sunrun’s consolidated balance sheet, whether or not they continue to be active. Non-Retained or Partially Retained Subscribers represent customers subject to Customer Agreements for solar and/or storage systems that have been recognized as Deployments whereby the assets have been fully or partially sold to one or more investors and not presented as a solar energy system on Sunrun’s consolidated balance sheet. Subscribers represent aggregate Retained Subscribers and Non-Retained or Partially Retained Subscribers. Purchase Customers represent customers who purchased, whether outright or with proceeds from third-party loans, solar and/or storage systems that have been recognized as Deployments. Customers represent aggregate Subscribers and Purchase Customers. Subscriber Additions represent the number of Subscribers added in a period. Purchase Customer Additions represent the number of Purchase Customers added in a period. Customer Additions represent Subscriber Additions plus Purchase Customer Additions. Solar Capacity Installed represents the aggregate megawatt production capacity of solar energy systems that were recognized as Deployments in a period. Storage Capacity Installed represents the aggregate megawatt hour capacity of storage systems that were recognized as Deployments in a period. Networked Solar Capacity represents the cumulative Solar Capacity Installed from the company’s inception through the measurement date. Networked Storage Capacity represents the cumulative Storage Capacity Installed from the company’s inception through the measurement date. Storage Attachment Rate represents Customer Additions with storage divided by total Customer Additions. Definitions for Unit-based and Aggregate Value, Costs and Margin Terms Subscriber Value represents Contracted Subscriber Value plus Non-contracted or Upside Subscriber Value. Contracted Subscriber Value represents the per Subscriber present value of estimated upfront and future Contracted Cash Flows from Subscriber Additions in a period, discounted at the observed cost of capital in the period. Non-contracted or Upside Subscriber Value represents the per Subscriber present value of estimated future Non-contracted or Upside Cash Flows from Subscriber Additions in a period, discounted at the observed cost of capital in the period. Contracted Cash Flows represent, (A) for Retained Subscribers, (x) (1) scheduled payments from Subscribers during the initial terms of the Customer Agreements (provided, that for Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, only the minimum contracted payment is included in Contracted Cash Flows), (2) net proceeds from tax equity partners, (3) payments from government and utility incentive and rebate programs, (4) contracted net cash flows from grid services programs with utilities or grid operators, and (5) contracted or defined (i.e., with fixed pricing) cash flows from the sale of renewable energy credits, less (y) (1) estimated operating and maintenance costs to service the systems and replace equipment over the initial terms of the Customer Agreements, consistent with estimates by independent engineers, (2) distributions to tax equity partners in consolidated joint venture partnership flip structures, and (3) distributions to any project equity investors, and (B) for Non-Retained or Partially Retained Subscribers, (x) contracted proceeds from the full or partial sale of related assets, plus (y) the share of Contracted Cash Flows described in clause (A) of this definition which are allocated to Sunrun pursuant to the terms of each sale agreement or partnership agreement. Non-contracted or Upside Cash Flows represent (A) for Retained Subscribers the (1) net cash flows realized from either the purchase of systems at the end of the Customer Agreement initial terms or renewals of Customer Agreements beyond the initial terms, estimated in both cases to have equivalent value, assuming only a 30-year relationship and a contract renewal rate equal to 90% of each Subscriber’s contractual rate in effect at the end of the initial contract term, (2) non-contracted net cash flows from grid service programs with utilities and grid operators, (3) non-contracted net cash flows from the sale of renewable energy credits, and (4) contracted cash flows from Flex Customer Agreements exceeding the minimum contracted payment (provided, that for Flex Customer Agreements that allow variable billings based on the amount of electricity consumed by the Subscriber, an assumption is made that each Subscriber’s electricity consumption increases by approximately 2% per year through the end of the initial term of the Customer Agreement and into the renewal period (if renewed), resulting in billings in excess of the minimum contracted amount (which minimums are included in Contracted Cash Flows)), and (B) for Non-Retained or Partially Retained Subscribers, the share of Non-contracted or Upside Cash Flows described in clause (A) of this definition which are allocated to Sunrun pursuant to the terms of each sale agreement or partnership agreement. After the initial contract term, our Customer Agreements typically automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing utility power prices. Aggregate Creation Costs (Non-GAAP measure) represent total operating expenses, adjusted for certain items consistent with management’s use as a performance measure, and capital expenditures, all of which are itemized in the Non-GAAP reconciliation table as provided in the Company’s quarterly earnings release. Aggregate Creation Costs may also be derived through the direct summation of certain operating expenses and capital expenditures incurred in a period, including: (A) the following items from the cash flow statement: (i) payments for the costs of solar energy systems, plus (ii) purchases of property and equipment, less (iii) net depreciation and amortization, less (iv) stock based compensation expense; (B) the following items from the income statement: (i) cost of customer agreements and incentives revenue, adjusted to exclude fleet servicing costs and non-cash net impairment of solar energy systems, plus (ii) cost of solar energy systems sales for Non-Retained or Partially Retained Subscribers, plus (iii) sales and marketing expenses, adjusted to exclude amortization of cost to obtain customer contracts (which is the amortization of previously capitalized sales commissions), plus (iv) general and administrative expenses, plus (v) research and development expenses; and (C) gross additions to capitalized costs to obtain contracts (i.e., sales commissions), which are presented on the balance sheet within Other Assets. Because the sales, marketing, general and administrative costs are for activities related to the entire business, including solar energy system and product sales, the gross margin on solar energy system and product sales excluding Non-Retained or Partially Retained Subscribers is reflected as a contra cost. Costs associated with certain restructuring activities and one-time items are identified and excluded. Creation Costs represent Aggregate Creation Costs divided by Subscriber Additions. Net Subscriber Value represents Subscriber Value less Creation Costs. Contracted Net Subscriber Value represents Contracted Subscriber Value less Creation Costs. Upfront Net Subscriber Value represents Contracted Subscriber Value multiplied by Advance Rate less Creation Costs. 53 Glossary of Terms Investor Presentation
Page 54
Advance Rate or Advance Rate on Contracted Subscriber Value represents the company’s estimated upfront proceeds, expressed as a percentage of Contracted Subscriber Value or Aggregate Contracted Subscriber Value, from project-level capital, proceeds from Non-Retained or Partially Retained Subscribers, and other upfront cash flows, based on market terms and observed cost of capital in a period. Aggregate Subscriber Value represents Subscriber Value multiplied by Subscriber Additions. Aggregate Contracted Subscriber Value represents Contracted Subscriber Value multiplied by Subscriber Additions. Aggregate Upfront Proceeds represent Aggregate Contracted Subscriber Value multiplied by Advance Rate. Actual project financing transaction timing for portfolios of Subscribers may occur in a period different from the period in which Subscribers are recognized, and may be executed at different terms. As such, Aggregate Upfront Proceeds are an estimate based on capital markets conditions present during each period and may differ from ultimate Proceeds Realized in respect of such period’s Retained Subscribers and ultimate proceeds obtained from such period’s Non-Retained or Partially Retained Subscribers. Proceeds Realized From Retained Subscribers represents cash flows received in respect of Retained Subscribers from non-recourse financing partners in addition to upfront customer prepayments, incentives and rebates. It is calculated as the proceeds from non-controlling interests on the cash flow statement, plus the net proceeds from non-recourse debt (excluding normal non-recourse debt amortization for existing debt, as such debt is serviced by cash flows from existing solar and storage assets), plus the gross additions to deferred revenue which represents customer payments for prepaid Customer Agreements along with local rebates and incentive programs. Net Value Creation represents Aggregate Subscriber Value less Aggregate Creation Costs. Contracted Net Value Creation represents Aggregate Contracted Subscriber Value less Aggregate Creation Costs. Upfront Net Value Creation represents Aggregate Upfront Proceeds less Aggregate Creation Costs. Cash Generation (Non-GAAP measure) represents the net change in cash and restricted cash less change in restricted cash and adjusting for certain items consistent with management’s use as a performance measure, as provided in the Company’s quarterly earnings release. Cash Generation may also be derived through calculating the change in our unrestricted cash balance from our consolidated balance sheet, less net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible debt), and less any primary equity issuances or net proceeds derived from employee stock award activity (or plus any stock buybacks or dividends paid to common stockholders) as presented on the Company’s consolidated statement of cash flows. The Company expects to continue to raise proceeds from tax equity and asset-level non-recourse debt, and proceeds from the sale of Non-Retained or Partially Retained Subscribers, to fund growth, and as such, these sources of cash are included in the definition of Cash Generation. Cash Generation also excludes long-term asset or business divestitures (aside from transactions relating to Non-Retained or Partially Retained Subscribers) and equity investments in external non-consolidated businesses (or less dividends or distributions received in connection with such equity investments). Restricted cash in a reserve account with a balance equal to the amount outstanding of 2026 convertible notes is considered unrestricted cash for the purposes of calculating Cash Generation. Definitions for Gross and Net Value from Existing Customer Base Terms Gross Earning Assets is calculated as Contracted Gross Earning Assets plus Non-contracted or Upside Gross Earning Assets. Contracted Gross Earning Assets represents, as of any measurement date, the present value of estimated remaining Contracted Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at 6%. Non-contracted or Upside Gross Earning Assets represents, as of any measurement date, the present value of estimated Non-contracted or Upside Cash Flows that we expect to receive in future periods in relation to Subscribers as of the measurement date, discounted at 6%. Net Earning Assets represents Gross Earning Assets, plus Total Cash, less adjusted debt and lease pass-through financing obligations, as of the measurement date. Debt is adjusted to exclude a pro-rata share of non-recourse debt associated with funds with project equity structures for Retained Subscribers along with debt associated with the company’s ITC safe harboring equipment inventory facility. Because estimated cash distributions to our project equity partners for Retained Subscribers are deducted from Gross Earning Assets, a proportional share of the corresponding project level non-recourse debt is deducted from Net Earning Assets, as such debt would be serviced from cash flows already excluded from Gross Earning Assets. Contracted Net Earning Assets represents Net Earning Assets less Non-contracted or Upside Gross Earning Assets. Non-contracted or Upside Net Earning Assets represents Net Earning Assets less Contracted Net Earning Assets. Total Cash represents the total of the restricted cash balance and unrestricted cash balance from our consolidated balance sheet. Other Terms Annual Recurring Revenue represents revenue arising from Customer Agreements over the following twelve months for Retained Subscribers that have met initial revenue recognition criteria as of the measurement date. Average Contract Life Remaining represents the average number of years remaining in the initial term of Customer Agreements for Retained Subscribers that have met revenue recognition criteria as of the measurement date. Households Served in Low-Income Multifamily Properties represent the number of individual rental units served in low-income multi-family properties from shared solar energy systems deployed by Sunrun. Households are counted when the solar energy system has interconnected with the grid, which may differ from Deployment recognition criteria. Positive Environmental Impact from Customers represents the estimated reduction in carbon emissions as a result of energy produced from our Networked Solar Capacity over the trailing twelve months. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits. Positive Expected Lifetime Environmental Impact from Customer Additions represents the estimated reduction in carbon emissions over thirty years as a result of energy produced from solar energy systems that were recognized as Deployments in a period. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis, leveraging our estimated production figures for such systems, which degrade over time, and is extrapolated for 30 years. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits. 54 Glossary of Terms (continued) Investor Presentation
Page 55
Per Share Operational Metrics The Company presents certain operating metrics on a per share basis to aid investors in understanding the scale of such operational metrics in relation to the outstanding basic share count in each period. These metrics are operational in nature and not a financial metric. These metrics are not a substitute for GAAP financials, liquidity related measures, or any financial performance metrics. Net Value Creation, Contracted Net Value Creation, and Upfront Net Value Creation are also presented on a per share basis, calculated by dividing each metric by the weighted average basic shares outstanding for each period, as presented on the Company’s Consolidated Statements of Operations. Net Earning Assets and Contracted Net Earning Assets are also presented on a per share basis, calculated by dividing each metric by the basic shares outstanding as of the end of each period, as presented on the Company’s Consolidated Balance Sheets. . 55 Glossary of Terms (continued) Investor Presentation
Page 56
Investor Relations investors.sunrun.com 415-373-5206 investors@sunrun.com