It's a funny thing, this solar coaster world. It delights and gratifies while simultaneously demanding that we bend to its will. At times, it seems the odds are stacked against us and the challenges are great. Our opponents are many and resourceful. We are a force of nature, advocates for our cause. We educate, debate, and set straight friends and foes because we know something that few have caught on to. Energy independence is not for the elite. It's for everyone, because anyone can be a world changer, an off-gridder, or a freedom chaser. In 2021, we made great strides to bring clean energy to more Americans than ever before through best-in-class products, technology, and service, while also walking the walk. To those of you who work day in and day out to fight for energy independence, pounding pavement, scaling roofs, moving mountains, we see you. We can't wait to show you what we have planned for 2022 and how we're putting a spotlight on the needs of our customers. This is our rally cry, to ensure that all who crave the power of the sun can access it, and in the end, we all live brighter. Good morning, everybody. I'm Mike Weinstein, Vice President of Investor Relations, a lot of you already know me for SunPower. Welcome to our 2022 Analyst Day. At today's event, we will have Peter Faricy, CEO of SunPower, and Manu Sial, CFO of SunPower, as well as several members of the executive leadership team that Peter will introduce in a moment. Now, we'll make forward-looking statements that are subject to various risks and uncertainties that are described in the safe harbor slide of today's presentation, which I can click to, maybe. We can go to the slide for the safe harbor statement if you guys want. They are in the safe harbor slide of today's presentation, our 2021 10-K and our quarterly reports Form 10-Q. Now, please see those documents for additional information regarding factors that may affect these forward-looking statements. We have also posted a set of PowerPoint slides, which we will reference today, on the Events and Presentations page of the Investor Relations website. At the conclusion of the presentations, we have a Q&A session for attendees. For those of you attending virtually, welcome. You will be able to submit your questions through the chat function of the webcast, and I will read them for you. A replay of the event will be available later today on the Investor Relations page of the website. Finally, a brief safety notice, emergency exits are located in the back of the room, and also in the front of the room behind the curtains, on both sides of the stage. With that, let me introduce Peter Faricy, CEO of SunPower, who will kick off our Analyst Day for 2022. Welcome. Thank you, and a warm welcome to everybody. We're so happy to be here. For those of you who traveled to San Diego, thank you for joining us in person. This is the first week we've really had, like, a full week of in-person business meetings. It feels so good to be here, not wearing a mask, not socially distant, like, we're shaking hands. It's kind of fun again. I remember this. I remember this part of the business world. For those of us who are joining by webcast, we appreciate you tuning in, and we're so excited to be here with you today. I think I've met a bunch of you, but let me give you a quick bit of my background. I joined SunPower last April as our CEO, and my experience was very different than many of the other CEOs in the solar industry. I don't have a traditional energy background, I don't have a utility background, and we really believe that we can blend the background that I do have, which is much more focused on consumer growth, digital and technology, with the incredible innovation history we've had at SunPower together to create this very, very powerful company. I'm thrilled to be here. I'm also thrilled to be in this role for another reason, which is I'm very focused on our mission. I really, really love the fact that we're not just building a very strong company and a company that we think will be very valuable, but we really care about the damage that's being done to the planet and the report that came out from the UN about how to make a big difference in the world. When you meet the executives today, you're gonna see a team of people who are here because they're committed to build a strong company, but they're also committed to this mission and to make a big difference in the world, and I can't wait for you to meet them. With that in mind, let me walk you through our agenda today. I'm gonna talk a little bit about how we view the marketplace, our strategy, and why we think that our company is a great investment, and then I'm gonna bring up a number of our executives that you're gonna get a chance to meet for the first time. Leading customer care, you're gonna get a chance to meet Nuala Murphy and hear more about our efforts to become the world-class customer company that we wanna be. You're gonna get a chance to hear a number of exciting announcements from Nate Coleman, who's our Chief Products Officer. You're gonna get a chance to hear from June Sauvaget about our growth plans, how are we gonna invest in sales and marketing and really grow our business. Then you're gonna get the chance to hear about SunPower Financial from Jason MacRae. Then finally from our wonderful CFO, Manu Sial, he'll be our closer, and then we'd be happy to take your questions here in the audience and over webcast as well. We're really looking forward to spending time with you today. Let me start off by talking a little bit about the market landscape. I think our view of the market is distinct and it's different than others, and I think that will lead you to naturally understand how we're viewing our strategy, and I'm going to walk you through our strategy in some detail. Then you're going to get a chance to hear from all of our executives about how our plans for our strategy will play out this year and in the years coming. First of all, the page I always love to start on because I just think it's incredible is we really believe the opportunity in residential solar is enormous, you know. Depending on what data that you want to tie to, we believe that there will be 100 million households in the U.S. that would benefit from adding solar on their rooftop, benefit by saving money financially net of their solar costs. To me, working over 35 years in the business world, it's an incredible value proposition for consumers. We can save people money, we can help them maintain their power, and we can help them make a big difference in the world. It's really, really incredible. The interesting thing to me is just how much of the opportunity is still left. For as long as these companies have been around, and we've been around for 35 years, 4% of the people in the U.S. have solar. You'll see I often say to my team, we got 96 million more people to go. We just have an enormous opportunity out there. That frames how we kinda think about what our strategy is. There's a number of tailwinds that we think are gonna be sustainable. Let me walk you through three in particular that we are quite confident will be true for a period of time. The first one is, I think many of you are enduring this yourselves, traditional utility costs continue to rise. This data on the screen shows 37 states where utility prices rose much faster than the consumer price index. This data is 2000 through 2020. All of you have had the recent experience of seeing the even more rapid increases that have happened over the last six, nine, 12 months with our utility prices. Gas prices, oil prices, 8% increases, 10% increases are not uncommon. It's really hitting consumers hard for something that they expected they would always be able to afford. This is constantly making solar more and more on top of people's minds and more and more affordable over time. The second big tailwind we see is actually on the policy front. I think you could argue this is the most favorable time from a policy point of view we've had in the history of solar power. I'll start at the federal level, and I'll kinda work my way to the right, but we're cautiously optimistic that after a lot of back and forth, that there'll be some kind of renewable energy package passed. We would hope that would happen before the summer break in August. But when you see Senator Manchin's comments that have been very favorable towards renewable energy, we would love to see, you know, this half a trillion package that's been proposed pass between sometime between now and then and grow the level of the ITC and extend the ITC over time. We think that would be very beneficial for consumers around the U.S. In California, many of you will remember last December, the initial read on NEM from CPUC was quite negative, and that would have had a very big impact on California consumers. It would have had a very big impact on our dealers and our workers all across the state. The great news from my perspective is their voices were heard. The protests were heard. People said, "We can't let renewable energy be pushed aside for higher NEM rates," and I think you've seen the CPUC and the governor to give them credit react accordingly. We've continued to push the California NEM discussion further and further down the pike this year in terms of getting on the agenda. We do believe it will be back on the agenda again sometime in Q2, and there'll probably be a decision that gets implemented later on this year. It is also our belief that the decision that gets implemented will be more favorable than what was proposed in December, and I think something that California consumers and workers can hopefully live with as we move forward. I think the other news that doesn't get reported very well is just how positive the policy tailwinds are for all the other states. There's a lot of focus on California for good reason because they've been the pioneers. In our 32 largest states, 27 of the 32 have favorable policies, or they're considering even more favorable policies. This is for stuff like PV, for battery storage, for EV chargers. When you take a look at the whole landscape across the nation, you also have to consider, like, New York, New Jersey, Massachusetts, those are extremely favorable environments right now for renewable energy, and we're beginning to see real growth outside of California across the whole country. We're quite excited about the policy tailwinds, and we expect those to remain favorable in the short and medium term. The third big tailwind that we think a lot about is actually the enormous opportunity with electric vehicles, and we're quite excited to see all of the announcements. You can't go a day without seeing a new announcement from an automotive OEM about a new vehicle they're introducing. Let me tell you why that's so important for solar. Every time a customer buys an electric vehicle, they do 80% + of their charging at home. That means their home needs about 40% more electricity than it used to before they bought the electric vehicle, and we know the grid doesn't have 40% more capacity. The more and more electric vehicles that get sold, we really believe is gonna directly translate to more and more interest in having solar and renewable energy on your rooftop. One of the things that consumers are beginning to understand is you're only as green as your charging source. When you just plug into your garage today and charge from the grid, you're still charging from fossil fuels. In addition to buying electric vehicles, more and more people are going to want to have solar and battery storage and an integrated package as part of all of that. We're quite excited about the growth of electric vehicles. We're planning on partnering aggressively across the industry to make sure we can support every one of those consumers, not just by installing an EV charger, but really helping them get a bigger ecosystem across solar and storage and beyond. When you add up all these tailwinds, where does this leave us? You know, from my perspective, it leaves us with a huge market, 96 million people, and there's not a clear front runner. There's lots of companies competing, but from my perspective, it's the business is there for the taking. As our strategy, we're viewing this market as a land grab. A land grab means we really believe the first person to serve the consumer and really make them happy will be the winner in this space. Because for consumers, this is a big-ticket item. This is an item that requires a lot of work on their part. It's not an item that has a good secondary market. We really believe high customer service and high satisfaction, those companies are going to remain the winners as we go forward. As we talk about our strategy and we talk about investing in growth, you're going to see we're behaving as if it is a land grab, and we're leaning in and we're moving forward very aggressively to serve as many consumers on residential solar as we can. Let me walk you through our strategy. For those who I've had a chance to interact with on our earnings calls, these are the same five pillars we've talked about. The five pillars I'm going to walk you through are the same five pillars we talk to our employees about. They're the same five pillars we talk to our dealers about, and they're the same five pillars we've talked to our board about. For me, strategy is really just a different way of saying, where are you going to choose to invest your incremental resources, and what is it that you hope to get from each of those areas? What I'd like to do for each of these five is I'm going to describe them quickly, and then I'm going to go through each one of the five, and I'm going to tell you a little bit about where we stand today and where our aspirations are, and then you're going to get to hear from our leadership group about a lot more detail about each of these five as we go forward. The very first strategy that we always talk about starts with our customers. Everything we do starts with our customers and works backwards. To keep it simple, we want to build a world-class customer experience that's a differentiator and puts us in a completely different league than other solar companies. Number two, we remain committed to be an innovative product company. Hardware still matters in this business. We really believe that we have an innovative future on the hardware side, and we will continue to offer the most innovative and the most affordable hardware products as we go forward. Number three, we're very committed to lean in on growth. We really see great opportunities to grow across multiple channels. We see a great opportunity to really invest in marketing and really grow the number of consumers participating in solar. Number four, I'm excited to share with you our thoughts because they're very different than I think others in the industry about the role of software. We truly believe that software will be as important as hardware someday, and we're really investing as if it will be going forward. Number five, this is a business that requires an enormous amount of financing in order for consumers to be able to participate. 80% + of people today in solar need a lease or a loan, and we want to tell you more about our plans for SunPower Financial and why we think that's a winning strategy. Let me start with the consumer piece. The part that we don't talk a lot about is, without question, SunPower is the highest-rated solar power company in the United States today. It's not even close. Every survey you check, every site you go on to, we're ranked number one. This is coming from customers. Thousands of reviews over many, many years, we're the number one company. From my perspective of someone who's worked for the last 35 years and as an investor, I like to invest in the companies that do the best job of serving the customer. When I see a company that's number one in customer satisfaction and consistently number one in customer satisfaction, that says to me, that's going to be a winning company in this industry. That's how we're thinking about the focus here. I will tell you it's very, very hard to earn a rating over 4.0 today. Customers are very discerning. Rooftop solar is very difficult to do. It's a big construction project. You know, imagine a remodel. It's a very, very difficult project. It's very hard to earn a 4.2 rating, but we're far from satisfied with a 4.2 rating. We think we can do far beyond that, and that's what you're going to hear more about today. We think differently about the customer experience. We start with the customer. We want to know what's important to them. We measure what's important to them, and we hold ourselves at much higher standards than others do in this industry and many other industries. I'm giving you one example up here on resolution time. It's, you know, we could take it as an article of faith that every customer, if they have a question or they have an issue, they want it resolved quickly. We're all the same. If you have to call someone, you want it resolved quickly. We not only hold ourselves on improving it, and you can see in 2021, we improved it from the beginning to the end by quite a bit. We actually are focused on how do we achieve world-class levels for consumer companies? That's far higher standard than what you see in a residential solar today. In this particular case on resolution time, we don't just measure the average customer experience. For those of you who are, you know, very analytic, you'll know that averages are misleading. You know, those averages sometimes mislead you to think that the average experience is just fine. We also judge ourselves on the extreme hardest experiences to solve, and Nuala will walk you through more about this, but we really hold ourselves accountable for constantly innovating on behalf of customers. Our goal, without question, is to build the highest customer loyalty, because we believe our current customers want to buy more from us if we do that, and also have the highest positive word of mouth. We want our customers to be so happy that they tell many other customers about the service and the experience they've had with SunPower. We think that's a winning formula and that's the approach we're taking as we go forward. We're very excited to share our plans with you today, and I can't wait for you to meet Nuala in a few minutes. The second part of our strategy is about our products. I think many of you know we have this incredible heritage at SunPower. I'm really just so honored to be a part of this company. I mean, this is the original Silicon Valley startup in solar. We did all these incredible things with making the first solar-powered plane with NASA and winning the first car race with Honda. We have an incredible hardware history. We're not letting that history go. We will remain the most innovative hardware company in the solar business, particularly in residential solar. The big change we've made, however, we started to make last year shortly after I joined the company, and that's around we've really pivoted our strategy to be focused very differently than before. We're not a company that sells one product and has a one-time sale with the consumer. That's our history. We primarily sold panels that we made. We sold them to dealers, sometimes to customers, and we were one and done. That's changed. Last year, we introduced our first battery storage product, SunVault, which has gotten off to a terrific start. We announced our partnership with Wallbox, and we're just getting started. We plan to have a suite of products and services that will delight consumers all over the U.S. We also have a very different philosophy about how we feel about interacting with consumers, which is we want to have a lifetime relationship with them. That changes the dynamic completely. That means you actually do wanna interact with them. It means you do want to invest in things like the mySunPower app to give them features that they can use to make their life better. It means you do care about financing because you know that that's gonna be an important part of their experience every month for the next 20 or 30 years. We're really doubling down on not just offering a broader array of products and services, but having the kind of relationship with our customers that makes them loyal to us and wanna buy our products and services over time. Now, I'm particularly excited to make one of our first big announcements today. If I could have a couple colleagues come up here and help me do our first reveal. I would like to show you something very, very exciting. Please, please work on our first reveal. Yes. Thank you very much. Ladies, and gentlemen, I would like to show you what we believe will be the most technically advanced residential solar panel in history. We are in late-stage discussions with our friends at First Solar, and our goal is to develop a partnership around a residential solar panel that will change the world. Now, for those of you who are here in the room, you might have mistaken this panel for a flat-screen TV. It looks beautiful. It looks shiny. It's gorgeous. But the aesthetics are just the beginning. Underneath the surface of this panel, for the first time in history, we've actually combined two different types of technologies to help us maximize the amount of sun penetration that we can get into our panels. The first technology is the one that First Solar is so well known for, and that's the thin-film technology. Right below the surface of this panel is this thin film that First Solar has done so well on the commercial applications and now for the first time ever will be available to residential consumers. The big difference maker is we didn't stop there. We're working in partnership with them, and we've been working for months on having a layer of silicon cells below the thin film layer that gives us this dual technology and allows us to capture a greater share of the sun's rays. We think this is gonna be an incredible innovation in the consumer world. This is, for us, a game changer on the panel side. We really believe that, if we're able to complete this partnership together, that we will have an opportunity to really make a big difference in efficiency, durability, and value for consumers. We're very, very excited about the opportunity here, and we're continuing to work together to complete a deal. We're in late-stage discussions now, as I said earlier. When Nate Coleman comes up here in a few minutes, we'll do our second reveal, and Nate will tell you more about, some more details about our panel strategy. We're excited to share that with you. All right. I talked about growth earlier, and in this same room and on this same stage, we had 150 of our biggest and best world-class dealers. It was so inspiring this week. I love meeting with our dealers. I love meeting with our installers. The people who are on the front line, who are actually talking to consumers and installing our product, it's fun, it's inspiring. One of the things that we're doing that's different is in a land grab strategy, we don't have to make choices between channels. I sometimes get asked, you know, are you trying to grow one channel over another? Are you trying to favor one state over another? No. There's 96 more million people to go. We're investing heavily across all channels. We're investing heavily across all states where we see consumer demand. Let me give you a couple call-outs on our channel strategy here. I'm gonna work on the left-hand side. From the SunPower Direct point of view, I think all of you know we're super pleased with the partnership, the acquisition we made last year of Blue Raven. Ben Peterson and his team have built an incredible business. It's been great to welcome them as part of the SunPower family. I think many of you knew Ben when they were an independent company. It's made a very big difference. Both companies have learned from each other. It's really helped us accelerate our growth. I'll tell you something you probably wouldn't expect, which is as fast as Blue Raven is growing, and we're very pleased with their growth, our SunPower Direct business is growing at twice that growth rate. I saw a note recently that speculated that a lot of our direct growth must be because of Blue Raven, and Blue Raven's been terrific. Our SunPower Direct business is as terrific or more, and we're really excited to see it take off this year. It's quite exciting. The second big area is we're still doubling down on our dealer network. We were the company that pioneered the dealer network, and now we announced this morning that we're pioneering something different, something new, something that we believe will really help us invest in our dealers and help them invest in their growth. It's called the SunPower Dealer Accelerator Program. Inspired from our Blue Raven acquisition, the question we asked ourselves is, if we're able to achieve incremental growth by buying new residential solar companies, what would happen if we also invested for growth with our existing dealer network? That's exactly the program we've put together. It's a program that our dealers love and there's a lot of interest in. The program kind of works like this. We're making a capital investment in these businesses that's helping them expand to new territories and expand their teams much faster than they could have otherwise. Many of these small and medium-sized businesses need capital to grow, and we can provide them capital to grow. In exchange for that capital, they are exclusively working with SunPower across all products and services. They're selling our panels, they're selling our batteries, they're selling our EV chargers, and they're using our SunPower financial products. It's really a bringing together of two groups that work well together and now kind of strengthening that bond. In addition to hearing how exciting it is for me, I'd love to tell you we have two investments that we announced this week. One of them is with Sea Bright Solar, Brian Kelly out of New Jersey, one of our most wonderful dealers. I think they were Dealer of the Year two years ago. They have a fantastic business. We're really excited to invest in them. As I mentioned, we're investing heavily outside of California as well, and that New Jersey area has really got great potential and we're very excited to become even closer partners with Brian. Many of you know Freedom Solar. Bret Biggart down in Austin, Texas. Very large, very successful, very fast-growing dealer. We're very excited to become partners with Bret. Let me let you hear a few words from Bret on his thoughts on the partnership. Hi, I'm Bret Biggart, CEO of Freedom Solar. 2021 was a record-breaking year for us here at Freedom Solar. The opportunity for both solar and storage in Texas is large and continues to grow. With an investment from SunPower, we expect to both focus on our organic growth as well as expand into new markets quicker. SunPower and Freedom Solar both share the common goal of leading the solar revolution, and we believe very confidently that this is a 2 + 2 = 5 kind of partnership. That's awesome. Thanks to Brett for doing a video and for being such a great partner. We're looking forward to help them grow their business in Texas and beyond. Let me cover the fourth part of our strategy, which is really around software innovation. As I mentioned earlier, I think we have a distinctive point of view here that's very different. I think forward-looking, if I were to look 10 years down the road, I see many of the parts of the hardware in this business becoming more and more commoditized over time. I think the difference maker will increasingly be software. When you think about the importance of software, you know, for those of you who are excited about virtual power plants, there's some hardware involved, but a lot of it's gonna depend on how good do we make the customer experience? How compelling can we make it for them to give some of their battery storage back to the grid, which is kind of an unusual event that doesn't happen normally today. Same thing for the solar process. You know, what we hear from customers today is, "Why is it so challenging to buy solar?" You know, depending on what industry studies you read, it's taking customers three months, six months, nine months from being interested in solar to being activated. The process is slow and bureaucratic and long, and it's perfect for software innovation. We are doubling down on taking away those things called soft costs, and we're doubling down on making it simple and easy for consumers. Yes, I think that will result in some efficiency for us over time. Honestly, I think the bigger lever here is customers are gonna love the fact that it becomes easier and easier to get solar and get battery storage and get it done faster. We're very excited in our future discussions with you to share more details there. Fifth and finally, let me tell you a little bit about SunPower Financial. When I joined the company, I think the thing that startled me the most was really this middle column. When you talk to the consumers who considered solar, so they're in the market, and they thought it was a good idea, and you ask them why do they not buy, the top two reasons have to do with financing. They're not sure they can afford the upfront cost or the down payment, and they're not sure they can get qualified for financing. When you actually dig into the reality of it, those are perceptions. They aren't the reality. We really have an opportunity to offer leases and loans to millions of consumers across the U.S. Being really good at financial products isn't just meant to be a one-off moneymaker. It's because it's actually really important to our customers. Our customers need innovative solutions on leases and loans, and I'm very excited for you to meet Jason MacRae, who's our leader in this business, in a few minutes. The part that we truly believe is that we really believe we have some distinct advantages with SunPower Financial. We have a large dealer network that makes our serving customer costs very efficient. We have 10+ years of data on how our leases and loans have performed. We have this software bent that other companies don't have that will allow us to make this process simple and easy, and we really feel like we're gonna end up growing a business here that will be great for our customers, but also a very big part of SunPower as we move forward. If I were to bring this all together, what does this deliver? Why does this make this company more valuable? Here's how we think about it. First of all, we really think this strategy will result in outsized growth. You know, depending on whether you wanna believe the Bloomberg study or the Wood Mackenzie study, people have forward-looking estimates of 7%-12% growth as we go forward. I frankly think those probably are a little bit conservative, but it's our commitment to achieve 2x market growth by 2025. We really believe that when we implement our strategy and we continue to make progress, that we're gonna begin to far outpace the growth of the industry. The second part of this is possibly even more exciting, which is that for every customer we have, and on the left-hand side of this page you'll see that by the end of this year we'll have 550,000 customers roughly, we believe there's an opportunity to sell them more products. Most of these customers only bought PV from us. There's an opportunity to sell them storage and EV chargers and smart home products. Along with, on the right-hand side, every new customer we sign up, we believe over the next three years will be twice as valuable as they've been historically. That's because they'll be interested, as they buy EVs, in upgrading their PV panels, adding storage, adding an EV charger, virtual power plant services, and beyond. In the end, this is supported in the foundation of over $1 billion of potential investment capacity over the next few years. We have a strong balance sheet. We have $1 billion we can invest. We've got the right strategy. We've got the right leadership team, and we really think this is a very compelling investment as we move forward. I'm very excited now to move on to our first speaker from our executive team. I had a chance to work with Nuala at Amazon, and I saw her face some of the most difficult customer care challenges imaginable and quickly make enormous progress in surprising the customers. The very first thing I did when I took over SunPower was I called Nuala. She at the time was working for an e-commerce company that sold furniture. I said to Nuala, "That sounds great. Furniture is awesome. But you know, you could spend the next 10 years shipping furniture across the company, or you can come here and change the world." I'm happy to say Nuala didn't hang up on me, and she's here to talk all about customer care and beyond. Please give a warm welcome to Nuala Murphy please. Hello, everybody. Thank you so much, Peter, for the warm welcome. Yes, I am here, and furniture is no longer a part of my career. I am so psyched to be part of SunPower and be able to make such a contribution to the solar industry and help those millions of consumers that Peter mentioned earlier. This is my first gig in solar. It's my first gig in renewable energy. It's my first gig in anything remotely to do with construction. What qualifies me to be part of the SunPower Power story today? Well, in fact, it's my experience in customer care. I have over 20 years of experience in sales, customer service. I've worked for Oracle, Bank of America, Amazon Web Services, and as you now know, Wayfair. Throughout my journey, I've had the privilege of getting to know, learn about, understand multiple types of consumers, be that in business, technology, insurance, credit cards, everything. It has been a wonderful ride, and I've learned a ton. When I was asked to consider joining SunPower, that was an easy choice for me to make. I met Peter back at Amazon, where one of my biggest tasks was to centralize our vendor support back then in those days worldwide. That consisted of taking 25 consumer goods categories over eight physical locations, over three channels, 24/7 contact to customers, and to top it all, in almost 10 languages. That was fun, but this is even more fun. I'm delighted to be here, and let me start on the journey and share with you why customer experience at SunPower is different. Peter mentioned we are best in class in solar, something we are extremely proud of. 4+ star ratings don't come easy, especially in an industry that is so complex and one that consumers fear. On top of the 4-star rating, we also manage something that I'm sure most of you are familiar with, a very common measure in the industry today, in any industry today, is Net Promoter Score. Net Promoter Score really attempts to understand how likely the customer is to recommend us going forward. We measure this, and we ask our customers, "How likely are you to recommend SunPower?" Why do we do that? We do that because every time a customer recommends us, that is the biggest praise we can get. It is our best way to acquire customers. In fact, a dealer at our conference this week shared with me that her business relies on 80% referrals. It's incredibly important, particularly again, when the process is so complex. I'm delighted to share with you today that the SunPower Net Promoter Score, bear in mind, we've already got the 4+ star rating, we're at a 49 NPS, and I'll take that as excellent. The creators of NPS actually say that 50 is an excellent score and 80 is world-class. 80 is the goal. You heard Peter say, "We don't just want to be best in solar. We will be world-class across all consumer industries." How do we know that? Well, our progress from 2021 to today is actually a 32% increase in NPS already. We know we can do this. We will not stop at 4- stars and 49 NPS. We are going for the 80, and I'm excited to share with you now how we're going to do that. I want to take you on a little trip, which is about customer trust, 'cause we can talk about price, we can talk about product, but when we talk about our customers, ultimately what customers wish to do is they wish to do business with a company that they trust. If I can ask you to think about your own personal life, who do you speak to? You speak to people you trust. Who do you go to for advice? You go to people you trust. Who do you confide in? Those you trust. It's no different in business. We aim to really focus on our customers to build that trust to drive long-lasting relationships. In fact, Forrester states that customer-focused companies increase their revenue 1.4 x faster than companies who don't focus on the customer. Little challenge for everybody today, if you can write down how many times I say customer. Every single thing that we do starts and ends with the customer. Why is our approach to customer care different at SunPower? Peter mentioned it early on in the presentation. One of the things that we do is we measure what matters most to customers. For any of you familiar with traditional customer service, there are a plethora of metrics to choose from to measure the efficiency, customer satisfaction, everything internally. For example, we could choose to measure handle time. We don't do that at SunPower. We use handle time to understand our staffing, our capacity planning, as you would expect. That's important. We do not ask our frontline teams to use handle time targets, talk time, writing time. Why is that? Because we know that customer interactions take time. We measure the things that matter most to customers, and the first thing I'm gonna point out here on the bottom left of the slide is our response times. We measure our response times. This indicates that the percentage of calls, emails, chats, everything that we get that we answer within our service level is steadily increasing. In the second graph, we talk about first contact resolution. First contact resolution is our ability to resolve the issue, not handle the contact and put the phone down, but actually resolve the customer issue in one interaction with that customer. That's what we all want, right? Who wants a back and forth with a company? Thirdly, we measure resolution time, and that resolution time we measure in days. As you can see on the graph, it's actually coming down. Again, all of these are 2021 numbers. We believe we have the right metrics because they matter to customers. What is it that we're measuring? All of you, I'm sure, in your field understand that averages cloud the true visibility of the performance of the number. We measure percentiles. We measure the 50th percentile. More importantly, we measure the 90th percentile. We measure the 90th percentile because that gives us an indication of where our biggest opportunities are to improve the experience for our customers. Finally, in customer care, before we implement a change or when we're analyzing a problem that our customers have, when we look at the solution that is being proposed, we ask ourselves, "Why is this important for customers? Is this really going to change an outcome for the better for our customers?" If the answer is no, we simply don't do it. Now I want to share a concept with you that may come to you as news, maybe some not. At SunPower, we propose that contacts from our customers are defects. Defect is a harsh word, right? I know from my product owner colleagues, and you'll meet Nate later, who wants to hear that the product is defective or the process is defective. Using a word like defect actually challenges us to seek the real reason for that customer contacting us. Let's be honest. Customers don't wake up every morning wanting to contact SunPower. I think if they did, that would be pretty strange. Maybe they'd like a friendly phone call. At the end of the day, it is up to us to understand why the customer is contacting us because only when we truly understand the reason for that contact, that's when we can improve and innovate and reduce customer effort and reducing customer effort increases customer trust, and increasing trust drives satisfaction, drives referrals, and so on. What we do is, in customer care, we do our, as I call it, bread and butter job of making sure that we're helping the customer when they do reach out. The bigger task is understanding the why behind it. We identify the root cause, and then we go through the following steps. Number two, we attempt to eliminate the defect. Number two, if we can't get rid of it for all customers, let's see if we can automate it somehow so customers don't have to reach out to us. Thirdly, if we can't automate it, why don't we have a good self-service solution for our customers? This is really important because if you think about the numbers that Peter mentioned, the 96 million consumers across the U.S., we're growing our business. For sure, we don't wish to grow our customer service at the same rate. We are not looking to scale one-on-one as our customer base grows. Best-in-class companies don't do that. Best-in-class companies seek to improve for customers on that journey. Self-service solutions become incredibly important for our customers. We all want to be able to resolve issues ourselves. We all go on the internet. We all try and figure it out before we actually have to reach out to that company. Finally, we do understand that customers do need to talk to us and will want to speak to us. Rather than having a contact center agent who has blurbs and compliance scripts, don't get me wrong, of course, we will comply, but what we have to enable is good, intelligent, mature, knowledgeable conversations between our customers and our employees. That is the journey that we're on, and hence why we say experts. Let's look at some examples of that strategy. Back in September, we had a homeowner contact us who reached out because the data on their monitoring application looked a bit funky, and it actually looked like this. On the left, you can see this incorrect picture, and what this incorrect graph is actually showing is that solar power was being produced at night. That's news to me that the moon can produce solar power. What actually happened was that there was an install mistake. The site metering was installed incorrectly, and so our team looked at that in more depth and were able to remotely flip that. Once they figured that out, they then went and examined all of our customer sites, and since September, we've corrected 12,000 homes where customers have not had to reach out to us and have not noticed that this is even an issue. Secondly, our automation. Our SunVault systems, 100% of SunVaults that are out there today with our customers are scanned for conditions, 120+ conditions. When we notice any one or a combination of these conditions that is endangering the battery, we send it into automatic recovery without the customer knowing. Secondly, again related to SunVault, particularly important when we have power outages. When customers are running on their battery, some continue to use power in the same way that they would, and so they should, right? It is sometimes very important to understand how long is that power outage going to be for. Sometimes we just don't know. We send automated alerts to our customers to actually tell them when their battery is depleting too fast, and that enables them to go look at their consumption and maybe scale it back a little bit to get through that power outage. Finally, our PVS monitoring system. It's very important that our PVS is always running on the most up-to-date firmware, so we install over-the-air firmware upgrades to make sure that service is superior for our customers, again, without customers knowing. Finally, self-service. One of the most common reasons that customers actually contact us is because their Wi-Fi has gone down. All of us know that Wi-Fi, we forget our password, maybe there's an outage, and the solar system also suffers in that situation. We need to alert our customers, and we need to help them understand that they need to go back and reconnect to Wi-Fi. We provide this on the mySunPower app, we also provide it on the desktop, and we enable them to reconnect without even having to contact SunPower, and we also provide them with a short tutorial. Why is all of this important? I talked about customer trust. Every time that we can identify the root cause of a customer contacting us, it means that we have the opportunity to eliminate that situation for all of our customers in the future. In doing so, we increase customer trust. Not only do we increase customer trust, we also are able to scale, back to my point earlier, with our customer base growing, it's important that we continue to innovate. What this graph is representing in the blue bars is that over time, year-over-year, we will see an 8% reduction in our cost to serve our customers as we continue on our strategy of root cause identification and defect elimination. This also has the side effect that it increases our productivity and efficiency. I'm delighted to share with you today that we are working with Amazon Web Services to enable a technology platform that is going to support the strategy that I just outlined. In working with Amazon Web Services, we will be able to build customer engagement by using our customer contact capabilities with deep data analytics and artificial intelligence that will help us meet the customer where they are. That is incredibly important, and the visual here, I'll just step to the side, the visual here shows us that when we focus on growth in the middle and we engage with customers in a meaningful way, it allows us to build trust. It allows us to meet customer expectations. It allows us to better understand our customers. But also, it allows us to improve our operations, it allows us to improve efficiencies, and it also drives innovation. It allows us that space to think about innovation and build new and better products and services for our customers that then again come back to meeting customer expectations, building trust, and so the flywheel continues. I want to leave you with this. As I think about solar and I think about that complex process, it is incumbent upon us at SunPower to understand the issues that customers face, because only then can we truly make solar easy and accessible for all consumers. Thank you very much for listening. I'm delighted to welcome Nate Coleman on stage now, our Chief Products Officer, to share more about this wonderful product. Hello, everybody. My name is Nate Coleman, and I'm here to talk about our products. I wanna start off with a little bit on my background, on that I started at this role in SunPower back in October, but I'm actually a boomerang. I was here previously from 2007- 2009 when I was working on PV tracking systems for utility scale applications. A lot has changed over the past 13 years, both here at SunPower and within the industry as a whole. I've actually been in solar since 1999 when I first started testing solar modules at a research lab, and I have seen a lot of changes over the past 2+ decades. I've watched the solar industry grow tremendously while having prior leadership roles at SolarCity, Tesla, and Sunrun, and I've really had a unique opportunity to see what works and what doesn't work from a product strategy perspective. I've also watched our grid continue to degrade and home batteries become more and more common. I've seen the EV adoption grow as well as electrification. With all this in mind, I'm very excited to be here today to talk through the products that we're offering to our customers. This image right here, this really illustrates our product vision. As Peter already stated earlier, we offer much more than just premium solar panels and systems. As shown here, we have our Equinox system that provides power from the rooftop. We have our SunVault batteries that allow customers the option to store solar energy so they can use it when the sun goes down or during an outage. We also offer EV charging, which allows customers to fuel their vehicle with clean energy. Now we have the ability to provide virtual power plant and grid services, which allow us to provide additional value to customers and lower the cost of ownership of storage. Connecting all these hardware products is our mySunPower app, which gives us a daily and lasting relationship with our customers. As Peter already mentioned, these combined ecosystem of offerings increases our total addressable market by 4x to $74 billion. Peter already gave a sneak preview of something we're very excited about, and he showed you the front of our module. What I'd like to now show is what's inside of this thing that makes it so special. As shown here, underneath this top layer of First Solar's proprietary thin-film technology, we've also embedded silicon solar cells. What this allows us to do is capture more energy from sunlight's wavelengths. The top photovoltaic layer captures high-energy photons, where this bottom layer captures low-energy photons that would normally just pass through and not be captured. By having this stacked tandem architecture, we can capture more of the sun's energy and provide a better value to our customers. This technology is something that I remember learning about in grad school over 10 years ago, and here it is now in front of us. This is amazing. We think when this product becomes available in 18-24 months from now, when we start putting it on our customers' roofs, there's not gonna be anything like this on the market, and we really are raising the bar in terms of efficiency and aesthetics. As we look at the solar market as a whole, really the next frontier for us is to address not just the premium market, but also this 56% shown right here that our current offerings don't currently appeal to. By working with First Solar, we're exploring options to provide both premium and mainstream products that will allow us to provide an amazing solar technology and offering at a much more appealing price. Now, if we move on to energy storage offerings, I think it's becoming more and more apparent that our grid is not very reliable. Where I live in the Bay Area, unfortunately, every year, wildfire season, and the associated grid outages is becoming more and more common and more and more expected. Even in areas where customers don't currently experience grid outages, they still see this on the news all the time, and they're wondering, "Is this gonna be me next?" They wanna have peace of mind, and we're very excited that we now provide whole-home backup opportunity for our customers that gives them the peace of mind and resiliency that they're looking for. With our whole-home backup solution, which is available this summer, we can now provide the ability to run both essential and comfort loads for customers. This means when you're having a conversation with a customer, they don't need to make the decision as to what they wanna back up and what they don't wanna back up. They can now back up their entire home. This allows them to run heavy loads like air conditioning, pumps, even EV chargers, in addition to their essential loads like the refrigerator, lights, and Wi-Fi. Having more batteries provides the ability to go off grid for longer. In fact, we recently heard of one customer in Northern California that was able to successfully power their home on just solar and storage for nine days straight. This is the kind of product we wanna make widespreadly available to customers across the country. Now, as we look at our storage supply chain, you know, like everyone else, we are definitely having to manage some of the things that are going on in the world in terms of what components are available. But we've been successful in being able to mitigate these challenges by having partnerships with our suppliers and expediting shipping as required. We expect gross margins for our storage products to increase in the second half of this year as a number of the cost-saving initiatives we've put in place are realized. As we look at our next generation of storage, cost is definitely at the top of our mind, and we think we have a lot of opportunity to not only reduce hardware costs, but also the associated installation and commissioning labor costs. If we look at this really at a whole system-level perspective, we think we have a lot of levers for cost reduction. As Peter already mentioned, there is tons of synergy with EV adoption and solar and storage. As we look at our next generation of SunVault, we wanna make sure we're incorporating the ability to provide EV charging. The way we're getting a head start on that is with our partnership with Wallbox, which gives us the opportunity to offer charging to our customers as a perfect add-on to solar if they wanna power their cars from the sun. Really, as we look ahead, we're excited about bi-directional charging and having this integrated into our future offering. If you look at this schematic here, we have a home hub, which is really the brains of this system that allows smart connectivity and load control. We have a SunPower base that has a bidirectional inverter that converts DC to AC and back again. We have an EV charging module that will allow direct DC charging for faster fill-ups on electric vehicles. All this also obviously comes with our standard solar and battery offerings that continue to generate electricity to offset usage and provide storage for the home and for grid services. We've introduced our Wallbox offering now, and we're expecting attach rates to increase substantially over the next upcoming months. As we look at grid services in VPP, this is an area where we see a huge amount of growth, and we've recently made some very exciting hires in terms of our business development and products organization to lead our grid services initiatives. We'll also be coordinating very closely with our technology and digital technology teams to help us realize this. We think that there's a lot of value that customers can obtain through VPP, and one of the biggest ones is the ability to offset the cost of ownership of storage. The incentives that customers get from VPP is not the only benefit here, and it's not the most important thing to us, actually. It's really the experience, because with these types of programs, there's a lot of trust involved. We're asking customers to allow us to control loads in their house, so we wanna make sure that we do this right. Right now, we're participating in a number of existing programs which are very variable in terms of what the rules are from utilities as to how you participate and how you're compensated. This is still very early days for us, and we're working with all stakeholders to ensure that we bring the most value to our customers. One way that we're really gonna accelerate our efforts, and you may have seen in this announcement this morning, is through our investment in OhmConnect. Now, OhmConnect is a very interesting company, and they've, the way they've gone about this is very unique. They have gamified energy use, and they have incentivized customers to reduce energy use at certain times of the day when the grid is failing or the grid is not able to provide the power that's required. This capacity that they free up can then be monetized and sold to utilities. This isn't something that's, you know, an experiment. They're already doing this. They already have 200,000 customers. They have 250,000 devices already enrolled in these programs. Some of these numbers you see up here are from recent pilots in California, where we're now integrating our SunVault battery into the OhmConnect platform and actually reinjecting stored solar energy into the grid when it needs it the most. We see a lot of opportunity to collaborate with OhmConnect. Those 200,000 customers that they have are all customers that are eventually, if not now, gonna be looking for solar, storage, and EV. We also wanna work with our existing customers and OhmConnect to have a VPP program that has services provided through OhmConnect. I'm now gonna play a short video that gives a lot more detail on how this partnership is gonna benefit both our customers and the grid. The electric grid is one of the great modern marvels, but it is very complicated, and it is very fragile, and it is starting to break down. It became very real for me last year. Everyone in Texas' power was out. For some people, that was a deal breaker. People lost their lives not having energy. One of the most important things that we can do to fight climate change right now is to get people to use energy when the energy is clean and cheap. When I started OhmConnect with my co-founders nearly a decade ago, we were really looking at, how do we get to 100% decarbonized grid? When the grid needs power, you can either turn on a power plant, or you can have people reduce their consumption. The most important thing that OhmConnect does is it connects anybody in any home to the clean energy future. For us to do that, we need a broad set of partners. Going to users with trusted brands, with partners, allowed us to produce their electricity a couple times a week. OhmConnect connects today to over 30 different manufacturers, devices, and appliances in homes. SunPower has a 35-year history of making the most powerful and efficient solar systems. We're really impressed with OhmConnect and their technology, and we really felt like we had a shared mission to combat global climate change and help customers save money on their electricity bills. The ultimate experience with the SunPower and OhmConnect user is they have solar, and they have storage, and that they are responding in real time to grid signals. HVAC represents a significant portion of energy usage for residential homes. Through our connected HVAC devices, we're gonna be able to expand energy savings by allowing homeowners to reduce their cooling in response to stress on the grid. If we are gonna tackle climate change, if we are going to make the green grid a reality and make it a stable reality for the whole country, everybody has to participate. Yeah, hopefully that helps give a better indication of the opportunity here and why we're so excited about it. I would like to close out my section with a very exciting project that we're doing right now that really shows this vision that we've laid out. This isn't some far distant future. This is happening now. We've already broken ground on a 219 new homes community by KB Home that's located here in Southern California. This connected community's home, it's funded through the DOE. This is gonna have everything we just laid out in the product vision: solar, storage, EV chargers, electrification, grid services. These are all standard offerings. Although, you know, this is not just a single home too, this is a connected community. This is gonna really allow us to see what happens when you connect all these homes together and how they can orchestrate to provide better resiliency in a microgrid scenario. I think even though this is our first project, this really is a blueprint of what, you know, renewably powered, resilient communities across the country can look like as we move forward. Thank you very much, everyone. It's been great talking with you. Look forward to talking to you more. Good job. All right. Thank you very much, everybody. We're gonna take a quick 10-minute break, and then we'll be back for the next three presentations in a row, and then we'll do Q&A right after that. Okay? Thank you for being here and being so actively engaged with all of us. Our next presenter is gonna tell our story about growth. To me, the fact that there's 96 million people who need solar, but the penetration levels are so small, it's an enormous opportunity for a great CMO. How do we create a distinctive consumer brand, and how do we really lower our customer acquisition costs so we can grow faster? We found someone with incredible experience across the world and across many very successful consumer companies. Please give a warm welcome to June Sauvaget. Good morning. It's an honor to be here. I wanted to first thank Peter for the warm welcome. It's been about three and a half months since I've joined SunPower, and in the three and a half months, I've learned so much about solar, and like Nuala, I am brand new to the space. What makes me qualified? Well, over the course of my career, I've worked on global consumer brands and introduced those brands into new markets, new emerging markets, and new audiences. My experience spans across leading global consumer marketing for Spotify and also working across brands for Gap Inc and Shiseido Corporation. The through line in all of those experiences has been that I've been building up a brand, introducing brands, also building value and equity to the customer with a laser focus on building customer trust. This is why my role and Nuala's role have to work very much hand in hand. I'm looking forward to leveraging the experience that I've had in my past experience into the work that I do at SunPower. As Peter mentioned, there's a huge amount of households that have not yet even considered the possibility of going solar. This is a different situation than just competing with competitors. We are competing with utilities, and we need to inform our customers why it is beneficial to move to solar and why it is beneficial to move to clean energy. Not only will you save money, you will save the planet, and you will also have energy resilience that will help protect you and your family. This is the story that we have not yet been able to tell, and in fact, no other brand has been able to tell that either. Today, I'm excited to share with you what the growth strategy is and how we're thinking about applying our strategic rigor to areas of growth at SunPower. I first want to talk about how we are going to serve every single U.S. household across America. We've had a decent track record so far. Last year, we've added 222 new dealers into our dealer network. This allows us to expand our territory coverage. That coupled with what Peter mentioned earlier with SunPower Direct, we are a powerhouse and able to cover many, many households. Today, we cover more territory than any other U.S. solar provider or any affiliate network. That puts us at the number one spot. We are not satisfied because we ended 2021 at 63% coverage of all eligible U.S. households. We are going to aim for 100%. In 2022, we are going to go from 63% territory coverage to 83%. Of course, we're not going to stop there. In 2023, we will continue to evolve and enter into new markets. What makes me so confident that we can achieve that? SunPower has a unique ability to expand our footprint and meet consumer demand, and it's something that Peter mentioned earlier. It's because we have a multi-channel strategy. We are not reliant on one single channel. We have multiple channels so that we can meet that consumer demand. The first thing I want to talk about is the tremendous growth that we've seen through our direct sales team. We call this SunPower Direct. SunPower Direct has expanded tremendously over the course of the last year. In fact, we see this as an opportunity both to cover territories where we don't have coverage, but also to complement where we do have coverage with our dealer network. In some of our hottest solar markets, there's so much demand that just the dealer network alone cannot fulfill the demand. As Peter mentioned, as consumer demand rises, many, many channels can coexist without any conflict. We love our dealer network. We mentioned, we have 700+ dealers. We will continue to expand our dealer network. The idea is SunPower Direct and our dealer network will together bolster our total growth for the business. Peter also mentioned earlier about Blue Raven. Blue Raven entered our family last year, and now that they are fully integrated into our business, we are able to pass leads to Blue Raven in markets like Idaho, Oregon, and the Carolinas. In the first half of this year, SunPower Direct is also expanding into six new territories, sorry. That will be Houston, El Paso, Dallas, Columbus, Las Vegas, and Long Island. You can see, we are leveraging our two channels, the dealer network and our SunPower Direct, to ensure that we cover the entirety of the U.S. Another very important channel to us is new homes. I'm going to dive deeper into this, but what I will say about new homes, and when you think about the customer journey of solar, meeting the customer as they are thinking about purchasing a home is the perfect moment to be introducing solar. To be able to move into a home that is solar ready is incrementally better than moving into a home and later deciding to do construction on your roof. We see this as a prime moment to interact with the customer, and it goes beyond just panels, and I'll speak to that shortly. Finally, strategic brand partnerships are also incredibly important for our growth story. As we tie partnerships like the one that Nate just mentioned with OhmConnect, these are adjacent category partnerships where we share customers, but we also have customer bases that do not yet overlap. We are able to be each other's lead flow and together grow as a business. We will be entering into more strategic partnerships in the coming months and years because we see this as a channel for growth. Moving on to new homes. I mentioned the importance of this. In case you don't know, we've been in this business since 2004. We've built a lot of rigor, and we have operational excellence when it comes to new homes. Our focus primarily has been in California, and it shows in the numbers. We have 41% market share, and we're continuing to grow in California. But that's not the big story I want to share today. We are moving into national exposure in the new homes category. The new homes team has done an incredible job. They've signed five national agreements with some of the top 20 builders, including KB Home, Toll Brothers, and Richmond American. These opportunities present our SunPower products to be in front of new home buyers across the U.S. We already have some proof points. We have 151 optional communities activated in 12 states already, and we also have new bookings in six states, including Florida, Arizona, Nevada, North Carolina, Texas, and Tennessee. The story doesn't stop there. We have two more exciting initiatives to further expand our leadership position in new homes. The first is to deepen our presence in communities by adding multi-product installations. This means that we are now installing storage and solar into new homes, and in some cases, storage, solar, and EV. Nate also mentioned this in his presentation. We already have 900+ SunVault standard community bookings in place, and we will continue to expand that further. We're also very excited to be expanding into multifamily new construction. This is going to be a huge opportunity, and already the size of the opportunity is 60,000 multifamily units built in California annually. In the short and medium and long term, the multifamily construction will also bolster our growth. We already have 25 MW-30 MW of sales in pipelines from a multifamily sale in 2022. Okay. We talked about how we're going to grow the business through our channels and leveraging our channels and expanding our channels. Of course, being the CMO, I have to talk about marketing as well. Lead generation is incredibly important for us to achieve our goals. In 2022, we have more aggressive goals than ever before. We are actually seeing demand come through the funnel that is outpacing the market pace. What's even more exciting to us right now is we are seeing 67% of our bookings occur outside of California. We are really focused on expanding our business, of course, inside California and continue to grow there, but even more so outside of California. I do want to take a moment to talk about our lead generation efforts because we not only generate leads for SunPower Direct, we also generate leads for Blue Raven and our dealer network. This is a value proposition that not all solar providers can say they have. This allows us to intake customers and route them to our best dealers around the country to ensure a stellar customer experience and installation experience. Another area I want to talk about is the funnel. Solar has many, many, many touch points. I think Nuala touched on that. With many, many touch points in place and many of them being quite manual and requiring a human interaction, there's a lot of patience that we are asking of our customer. Through the entire funnel, we wanna make sure that we're measuring every single point and making sure that we're keeping the customer within the funnel. The more leads that we can take all the way down to contract, of course, that will increase our volume, but it will also decrease our customer acquisition cost. We see a tremendous opportunity in evaluating this with a fine-tooth comb, and we are already beginning to do that. I talked a little bit about paid acquisition, but the best scenario for us is to reduce the amount of paid acquisition we do and rely more on organic growth for the business. There are three pillars for us that we will be including in our strategy moving forward, and some of this has already been implemented. The first area I want to talk about is referrals. As a marketer, I'm also going to put myself out of business, but the best kind of marketing is when a satisfied customer talks to their family or friend about a service or product. You're always going to trust what your friend or family tells you over what a company tells you. With Nuala's team focused on customer satisfaction and knowing that we will have the best innovative products in the marketplace, we have an opportunity to tap into our already 500,000 customer base by the end of this year, as well as tapping into our future customers that come into our funnel and enabling that word of mouth and enabling that to tell the SunPower story. Second, we have a huge opportunity in upselling. As Nate mentioned, we're moving from a single product to multiple products, an ecosystem of home energy solutions. This presents a great opportunity for us. Again, we have 500,000 customers that we will have by the end of this year. We have an opportunity to go back to them, most of which only have panels on their home. We can talk to them about our ecosystem and upsell them into new categories. Additionally, we have new customers coming into the funnel in the future. We foresee a future where customers don't necessarily come in panel first. They will buy an EV, for example. The first need out of that is getting an EV charger. A couple of months down the road, you may realize, wow, my electric bill is so high. You might realize, to Peter's point, I bought this clean machine, and I'm actually powering it not with clean energy. The reality is there's an opportunity to upsell into those customers as well. I think the idea is the point of entry into solar is going to look very different than how it's looked historically. We're already beginning to do upsells into our new home audiences, and we're seeing some success upselling them into SunVault and EV chargers. Lastly, retention and relationships are critical in making sure that we continue to drive growth, and we have a lifetime relationship with customers. For example, when a customer leaves their home, the reality is most people do not live in one home their entire life. When a customer is leaving their home and moving to a new home, we want to make sure that there is continuity with that customer. As they move into their new home, the first thing they should be considering is, again, to install SunPower systems into their home. Additionally, there is a newcomer into that home that already has SunPower. Maybe this new family that moves into this house has more energy needs, so we need to increase the rooftop capacity. Maybe they want storage, and they don't already have storage. There's an opportunity to also welcome this new homebuyer that is buying a home with SunPower systems in place. These are the areas that we'll be focused on to drive organic growth and to reduce the amount of paid acquisition we do. Speaking of paid acquisition, we work in an industry where the cost of acquiring a customer is extremely high. I can tell you from my experience working in streaming music, fashion, retail, and beauty, the customer acquisition cost is not as high as it is here. However, in all instances, no matter where you work, you're always looking at ways to lower your customer acquisition costs. I am going to apply what I have done in my past and do that exactly here. When we look at the customer acquisition cost, we do foresee that to go up in the coming months and years. The reason for that is there will be more audiences coming into this marketplace, and more importantly, there will be more competition coming into this marketplace. How do we combat the fact that there is an inevitable situation of customer acquisition going up? There's four key levers that we will pull, but the most important one is the application of software, digital tools, marketing technology, and constantly leveraging data to drive efficiency. Many companies already do this, but we have not historically done this, and we are doing it now. What this means is we are able to look at real-time results and match the audience with the right message and evaluating the right media mix to reach that audience. It also means that we're constantly A/B testing messages because as I said earlier, the reasons for people to come into the funnel are different. Some care about the cost, some care about sustainability, and some care about energy resilience. In either case, being able to have the right message in front of the customer is extremely critical in the optimization of our efforts. Second is the full funnel optimization, which I briefly spoke about earlier. Again, when you look at a funnel, you want to contain the leads that you bring in as much as possible. So evaluating every point of the funnel and making sure that we're optimizing those certain points so that we can contain the customer from lead to conversion is going to be very critical in driving down our acquisition cost. Thirdly, as I said, we are going to have nationwide coverage. This means that our marketing efforts are going to shift away from geo-specific to nationwide. As soon as you go nationwide, you have scale, and scale allows you to optimize much more efficiently. It is extremely expensive to target customers on a geo basis. It is much less expensive when you have nationwide coverage. This will be a critical part of how we lower customer acquisition cost. Lastly, I touched on this already, but partnerships, again, are very, very important. In my past life, I have formed some very strong strategic partnerships that have enabled a funnel of customers into our business. I know for a fact that if we line up with some automotive industries, real estate, or even retail, there will be opportunities for us to tap into each other's audiences. I shared with you today on how we are going to drive growth through our channel strategy, how we are going to drive growth through our marketing efforts, but most importantly, how we are going to lower our customer acquisition cost. Our plan is to reduce our customer acquisition cost by 20% by the end of 2023. This application of data, software, and analytics into our lead gen efforts will be industry breaking, and we're very excited to share those results in the near future. With that, I conclude my presentation, and I would like to welcome Jason MacRae, who will speak to you about SunPower Financial. Thank you very much. Hello. Good morning. Thank you so much for traveling all the way to see us. I'm Jason MacRae. I'm very excited to speak with you. I joined SunPower seven months ago, and my career has been kind of half in banking. I've been at Morgan Stanley, also on the asset management side at Capital Group and some hedge funds. I've also been in the technology business. I've been at startups, venture-backed startups, and most recently at Amazon, where I led Amazon Lending. Amazon Lending is an analogous business to SunPower Financial, which is what I'm gonna talk to you about today. Basically a captive owned by a larger company that's selling things to consumers and small businesses. Like everyone else you've talked to or you've met today who's joined recently, who's not from the solar industry, I am passionate about our mission. It's really why I'm here. I think this is a great business, but it's also a wonderful feeling to work in an industry like this, and I think we have only just started. As Peter mentioned, financing is really important in solar, and I guess this is sort of obvious. I mean, the sale is a $35,000-$40,000 sale, a little bit like a new car. You know, it's a very expensive purchase, and just like new cars, about 80% of it is financed. So people, you know, don't have $40,000 in their checking account, and even if they do, they don't wanna use that for a purchase like this. Financing is critical, and financing is way too hard, and there's much too much anxiety associated with it. People are not sure they can get it. People are not sure what it's gonna cost. It's too complicated. There's a lot of friction. SunPower Financial exists to solve those problems. Okay, why do we wanna do this? There's really four reasons. The first is we think it's gonna increase sales. You're gonna do more equipment sales if customers come to us, and it's really easy to pay, and, you know, it's a compelling financial product. At the end of the day, a good number of the customers who do come in are looking to save money, and that of course equates to what the monthly payment is. Making that super easy to see, have it be something that doesn't take a lot of time to apply for and get, is critical to selling more equipment. The second part is, of course, financing is a profit center in its own right. It's an opportunity for us to have higher incremental EBITDA per customer. There's a business here. It's not just a service. It's its own business. The third is as a financier, whether it's loan or lease, we can service that customer, and that creates a lifetime relationship that could extend out to 25 years. It's an opportunity for us to touch that customer and create stickiness with that customer. As they look to upsize or we look to upsell them, or we look to engage with them in other ways, they're always gonna have to finance it or look at how do they pay for it. If we're there with them every step of the way, that also creates incremental value. The final reason is, you know, these days it's possible to set up a finance company in a marketplace model that's asset light. There's a lot of capital out there in the world looking for great ESG fixed income investments, and that's exactly what we're generating here. We don't see this as something that requires us to have a balance sheet or take a lot of credit risk. It's something we can build in a very asset light, sort of modern fintech model. We know how to do that. It's what we did at Amazon and we can do here as well. You may ask yourselves, "Why do we wanna be in this business?" There are other companies who do this. There are finance companies who focused on solar. They're good companies. They've done well. Why is SunPower gonna have a competitive advantage in this space? I think there are really four reasons. First of all, if we set up a finance company, you gotta do what all the other companies need to do. They need to acquire customers. Those customers need to be captured in a CRM system. They need to have an e-commerce platform where they can transact, they can make choices, they can actually go sign the agreement, all the things that you need to do, you know, as a digital business. Well, SunPower already has that. That's already built. We have a sales force. We have a great marketing team. We have technology, which is on display next, in the next room. By bolting on financial products to that existing platform, we could, at a very low cost, offer that service. Here I've given an example. As a, you know, Sunlight is publicly traded, so we can look up their CAC. Our CAC is basically zero. You know, we don't really have to acquire this customer. We already have the systems. So that's an advantage. The more important advantage, though, is the second one here, which is when you talk to people who take risks, the people who are ultimately the permanent capital, who is buying solar, loans and leases, what they'll tell you is that when there's a delinquency in the pool, it's very often not because of ability to pay. It's often because the behavior of the dealer, the quality of the installation, or the quality of the equipment was problematic. This is a customer who's angry because their roof is leaking, or the system is not working, or they felt like they were misled during the sale. Unfortunately, in the solar industry, these things do happen. When you look at the data on a granular basis, you find that the root cause of delinquency is often those sorts of factors. This is where SunPower has a real decisive advantage. We have the best equipment, the best warranty, the highest quality dealer network, and the highest quality standards for installation, and that is borne out in the data. Our last ABS deal was in 2018. I've provided some data. This is all in Kroll. These are all public deals. Our delinquency rates are lower than our competitors and the lowest in the industry. We think that that's something that over time gives us an advantage. It gives us lower cost of capital. The third reason is our approach to the customer. Most of our competitors are one track. It's loan only or lease only or primarily one channel. In our case, we don't do that. What we try to do is talk to the customer, understand what's best for them, and offer them all the options. We expect that they'll choose the one that's best for them, but we don't push them one way or the other, and we think that that's gonna create an advantage as well. We're the only large solar finance company that extends all the way from the product suite from loan and lease and is indifferent to which one you select. Lastly, you know, a lending business, a leasing and lending business is really about taking credit risk, and taking credit risk ultimately requires data. You know, it's predicting the future, and the best way to do that is to have as much historical data as you can. We're proud of the fact that we've been doing this for over 10 years, and during that time, we've experienced the Great Recession. You know, you wanna be able to. It's like asset management. You don't trust something unless you've seen a cycle. So in our case, we've seen a cycle, and we have granular data on how consumers behave in solar, residential solar, all the way back to 2009. We think that's an advantage versus fintechs who are more recent entrants in the space. You know, they joined the party, you know, late teens. I think that will bear itself out over the long term as we have superior data we can play with. We're taking this quite seriously. We're trying to build a big business here. As part of that, we've hired a fantastic leadership team. Most of the people, except for one on this slide, are new to the company. They've joined in the last six months. Almost all of them worked with me in the past. Some of them have worked multiple times with me in the past. Many of them came from Amazon. As I mentioned before, I ran Amazon Lending, which was a successful business. We had tremendous operating leverage and a very profitable business. We have assembled a team that's cohesive and experienced. Collectively, there's 197 years of experience on this page. I won't tell you what my contribution to that was, but Peter mentioned software, and in lending, software is just as important. You know, it's a big competitive advantage to have better software. We are investing on this. This is an important part of our growth and our differentiation. We wanna have the easiest customer experience. If I'm a consumer, I should be able to go right through the process as quickly as possible, fully automated. At the moment, that's not the case for anyone in this industry. There will never be 100% automation because there are regulatory reasons why you can't do that in some cases, but we think we can get pretty close to a hundred. What you're seeing here is our progress, you know, during the course of 2021 and since I joined, and we're gonna go much further than this over time. The second, of course, is we have partners. We have, you know, our dealer network. We wanna make sure that we are easy to deal with, and we of course pay them quickly and, you know, have minimum friction in how they interact with us. That's a major focus, taking care of their needs. Finally, the servicing. You know, in the past we've had lease servicing, but we've not had loan. I'm proud to say that we launched loan servicing in late 2021, and that is now available online. We're integrating that into the mySunPower app, and that is coming later this year. Speaking of servicing, we think this is a big opportunity. You know, if you wanna have a sticky lifetime relationship with customers, you have to have a recurring touchpoint with them. You have to have contact with them. Partly that'll happen through the mySunPower app, and as we do VPP, they'll have reasons to interact with us. Servicing provides an additional reason. They're making monthly payments, they're checking the status of their loan, they're thinking about a prepayment. There's an additional touchpoint there, and if it's integrated into the mySunPower app, we think it's gonna provide incremental opportunities for upsell and positive conversations with our customers. The other thing about servicing is that the fact that we're servicing the loan gives us access to the data on the performance of that loan and as well the information about the bureau. If that customer is looking to buy a second home, we're gonna notice that as they apply for another mortgage. There's insights we get because we have a closer relationship with that customer than just if we had solar alone. We see this as a big opportunity. We're very excited by it, and stay tuned for that later this year. In the lending business, you need capital. We don't intend to run this using our own capital for lending. We're looking to create a marketplace model, and I'm very proud to say that we've raised over $3 billion of lending capital since I joined. That's lease and loan. On the lease side, we've extended our relationship with Hannon Armstrong, and we're launching very shortly, literally in a matter of days, a fund called Dorado, which is a new version of the old fund, SunStrong Two, with Hannon. This is a great accomplishment. We have better terms than we had before. You know, I think it's a testament to the fact that when you have a track record and you've shown through data that you can perform well, ultimately spreads come in, and we're seeing that here with this transaction. The mezz and equity investors are demanding a lower yield than they did before. Very excited about that. It's gonna provide greater flexibility to us and additional capital to scale our lease business, which as you guys know, is very important in new homes. We're looking to close that very shortly. On the loan side, our strategy is to have a diverse set of capital providers. We want to tap the ABS markets, and so we have a facility that ultimately will lead to that, and so we're looking for that sort of funding. We also want relationships with depository institutions, right? Because it's very important to have different sources of capital, so we can pivot to the cheapest and most flexible and advantageous in choppy markets. We've signed three transactions in the last six months. We have more coming, expect to see more there. The good news is when I look out into the market, I see tremendous demand for this asset. It's no surprise. You know, I was at Capital Group before, and I was involved in ESG, which is a big initiative for everybody in this space. One of the big challenges in ESG investing is you wanna buy something where you can show impact. You wanna be able to demonstrate that not only are you getting a good yield and it's a good risk return profile, but you're also doing something for the E, S or G part of ESG. In our case, we have granular customer-level monitoring. I can tell you exactly how much carbon we've removed from the atmosphere, and I can compute that in a very precise way and tell you what your bond is doing for the climate. That's something that very few people can do, which is why we're seeing a lot of demand for this asset. Okay, Peter mentioned our Dealer Accelerator Program, and of course, you know that we acquired Blue Raven last October. These sorts of transactions, whether they're outright acquisitions or minority investments, these are accelerants to SunPower Financial. The reason for that is it gives us an opportunity to get closer to those companies and do more of their financing business. Blue Raven had not done any financing with us in the past, and within two and a half months of the acquisition, we had built an API, integrated into their system and started lending for them. During the course of 2022, we're gonna scale that up, and by the end of the year, we'll be powering all their loans. In the case of Freedom Solar, you saw the gentleman, Bret, who is the CEO. They had been a large SunPower dealer, so selling a lot of equipment, but not using any financing from SunPower. That is now changing. We're gonna start lending for him, and we expect to do about 30% of his volume this year. Both of these are examples of very large, successful dealers who are coming into SunPower Financial fold as part of their deepening relationship with us, and we think that that's gonna continue and that will help drive our attach rates up. Where does this leave us? The basic message is SunPower Financial is growing faster than SunPower as a whole. What you're seeing here is Q4 2021 data year-on-year growth compared to Q4 2020. SunPower grew at 28%, SunPower Financial 41%. That gap is continuing and in fact may widen this year. It's really a result of the fact that people are migrating to SunPower Financial, people on our platform. When I joined the company, the percentage of SunPower equipment sales which were financed by SunPower was in the mid- to high- 30s%. Our target for 2022 is to hit 45%, and we feel very good about our trajectory there. What's particularly exciting about this is each sale we do that is financed by SunPower Financial has a higher incremental margin, right? It's a higher EBITDA sale than it would be if it was financed by somebody else. This is highly accretive to SunPower's business, and it's something we think we can grow. Our longer term strategy is to get this thing up to the 70s%, the attach rate for SunPower Financial. We think we can do that. We had the dealers in this room just a few days ago, and we had the opportunity to meet all the big ones and I think this is something that we can do. I think people are hungry for this and, we're excited to meet their needs. With that, I'm gonna introduce my friend and colleague, Manu. Thank you, Jason. It's great to see everyone. Thank you for spending the day with us today and coming over to San Diego. For those of you who I've not had the pleasure of meeting, I joined the company a little less than four years back as the CFO when we began our journey of transformation. Over the last several years, we have greatly simplified the company and believe that our transformation to a residential and consumer-focused company is now complete. Post our transformation, we have a business that has a large untapped TAM, has had high gross margins, and now has the benefit of a great balance sheet. This results in a company where we are targeting to grow our return on invested capital north of 25% with greater predictability of results. Let me now walk you through our three-year target financial model. We have a very simple financial model that is anchored around number of customers and the value we generate on a per customer basis. We are targeting to grow our annual customer adds at 2 x the market growth rate that Peter shared with you a few slides back. The Adjusted EBITDA target for 2025 is in the range of $3,000-$4,000 on a per customer basis, compared to $2,000-$2,400 in 2022. While we'll continue to invest in our platform, we will create operating leverage by investing in our platform at half the rate of our customer growth. We believe we are positioned really well to execute on our model given the market potential and the initiatives that Peter and the team shared with you so far. We are also affirming our 2022 guidance. Let's now dig into each of the elements of the model. Let's start with the number of customers first. As I mentioned earlier, we are targeting to grow our annual customer base at 2x the market growth rate. The confidence in growing our customer adds stems from the fact that we have been executing and we are pleased with the progress we've made on our initiatives in 2021, including on SunPower Financial, with momentum continuing in 2022. We are targeting to grow nationally by the end of 2022 to have a geographic coverage north of 80% in the U.S. While we'll grow California over the next three years, we are targeting California to be less than 40% of our total volume in 2025 compared to 50% in 2022. As we look at our sales mix, consistent with our strategy of selling less of pure component sales, we'll be reducing the component sales in 2025 compared to where they stand today and increase sales from our direct sales channel relative to our total volume. We are pleased with the performance of all our channels that June shared with you, including new homes that we plan to grow both nationally and into multifamily. The second element of our financial model is Adjusted EBITDA per customer. We are targeting 2025 Adjusted EBITDA per customer greater than 50% of 2022 levels. The growth in Adjusted EBITDA per customer largely comes from increasing attach rates for our storage, EV charger, and for SunPower Financial. For 2025, we are targeting SunPower Financial attach rates in the range of 65%-75%, with storage and EV charger attach rates getting up to between 30%-40% over the same period. June and Nuala talked about specific plans to lower our customer acquisition cost and our cost to serve. In addition, we've started several initiatives under the leadership of Derek Kuzak to lower our install cost on a per customer basis. With these actions, we are confident of achieving our 2025 Adjusted EBITDA per customer target. Let's shift gears to a third and final element of our model, which is our platform investment. Platform investment is defined to primarily include products, digital, and corporate OpEx. While we will continue to invest in the platform, like I mentioned earlier, we will create operating leverage by growing that investment at half the rate of our annual customer adds. Significant investment in infrastructure upgrade and talent hiring is largely complete by 2023. Investment in products and digital OpEx associated with growing our EBITDA per customer peaks on a per customer basis in 2022 and 2023, and then declines. Corporate spend is roughly 1.5% of revenue and stable. Let's now turn to the balance sheet. From a balance sheet perspective, we have an asset-light and positive operating cash generating model. We are targeting a leverage ratio of less than 2.5x net recourse debt to Adjusted EBITDA. As you can see from the chart on the left, given our growth plans and margin expansion results in an incremental debt capacity, and adding to that the pending proceeds from the sale of Enphase shares and the sale of the C&I business, we have the ability to invest over $1 billion while maintaining a healthy leverage ratio. Continuing with the balance sheet, we have a return on invested capital that is significantly better compared to our peer group, and the return on invested capital that we're targeting north of 25% gets enhanced post the sale of the C&I business. Before we set up for Q&A, I want to share with you why I believe that SunPower is an even more compelling investment today. One, we have a residential business with a large and untapped TAM with market tailwinds. Two, we are targeting to grow our customer adds annually at 2 x the market growth rate based on specific initiatives that you heard today. Three, we have an integrated suite of products and services that Nate talked about. With the growth of SunPower Financial, we are targeting to grow our Adjusted EBITDA per customer materially and also enhance our TAM. Four, we have a large and growing installed base of customers that we have the opportunity to upsell current and future products and services, and that is largely incremental to the target model I shared with you. Finally, we have the ability to invest over $1 billion to support our growth plans. With that, we'll take a break to set up for Q&A. Okay, we're back, and we're ready for your questions. Before we get started, I wanna introduce a couple folks that are here in the audience that are part of our senior leadership team. Derek Kuzak, if you could stand up and give everybody a wave here real quick. Yeah, it's okay to clap. He deserves it. He deserves a round of applause. You guys don't know what he does yet, but it's okay to applaud him anyways. I think that's fine. He's our Senior VP for Supply Chain, Quality & Field Operations. I know a number of you over our earnings calls have asked questions about how are you managing supply chain, how are you managing quality, and how are you managing this very large field force. We're grateful to have Derek on board. He had many of those same roles at Amazon. He's come join us at the beginning of the year, and Derek is a big senior part of our team. I also wanna introduce Josh Koppelman, who's our new Chief Technology Officer. You can clap for Josh. Josh has been at Amazon for over 10 years. He's just an expert in software, but he's also becoming an expert in this combination of hardware and software, and I think given the presentation we made about the importance of both, Josh, we're so great to have you here. Sorry for those who are on webcast, you may not be able to see those folks, but I wanted to do a quick introduction for those that are here. With that said, we'd love to take your questions. We're gonna rotate back and forth between the audience here and Mike Weinstein, who's got them on questions he's taking from the online audience as well. I think we have a couple microphones. I apologize. With the lights, I can't see real well, so whoever's got their hand up, just give us your name and who you're with, and we'd love to hear your question. Thank you. I think all the microphones are out. I have a microphone, but it's not working. Okay. Sorry. Can we turn the mics on in the back, please? It's on. Yeah. It's working now. Okay, terrific. Great. Philip Shen with Roth Capital Partners. Thanks for taking the questions. This First Solar SunPower module looks real exciting. Was wondering if you might be able to give some of the history on how it came to be, what the efficiencies might be with the tandem cell, as well as when you get ramped up in 18-24 months, what do you expect the annual capacity to be, how much capital might it require, and then ultimately the branding and pricing strategy, you know, relative to the potential cost structure. I think it's gonna be targeting the premium market, but was wondering if you might be able to tackle all those questions. Thanks. That sounds great. Thank you, Phil. I'll take a shot at it, and then I'll have Nate jump in for anything I miss. You know, we're in late stage discussions. We've signed a non-binding letter of agreement, but we haven't come to our final agreement yet. It's kinda premature to give out many of the details of the questions you asked. We are looking forward to getting a final agreement and having a proper forum and making a formal announcement, and we'd love to talk about all those. Let me give you a couple of pieces of color for context. As Nate mentioned, we do believe we're gonna be able to develop together the best in the world product for the premium segment. This is a product that'll set a new benchmark for efficiency, and it will be the best of the best products that exist in the solar world. We think we can actually do that at also a good value as well, which would be a game changer for us. We're in the premium segment today selling a premium product, but we're also selling it at a premium price. We think we're gonna have an opportunity with First Solar to sell the premium product at the premium segment at also a potential affordable price. We're also interested in doing the same thing for that mass market segment. Mass market's now 60% of the total solar market and growing faster than the premium segment. We don't wanna have a race to the bottom kind of a product, and we don't wanna have a me-too product. Our dealers want exclusive, best in class, world-class technology products, and that's exactly what we're gonna build for that mass market segment. Within the segment, it will have by far the best efficiency, and it will also be a great value. That's a bit of how we're thinking about it. In terms of production capacities and pricing and comparisons, that's all information we'd love to share for you. If we're able to get, you know, a formal deal done and make an announcement around that. Nate, what else would you add to. Yeah, I think you asked about the history. I mean, I'm very excited to be able to share this with you all, 'cause this is something both First Solar and my product team have been working on for months. You know, this has been a very collaborative effort. I think everything we've talked about today is really about the laminate and about having two layers of distinct photovoltaic absorbers. This really is an opportunity to rethink other parts of the system and the architecture in terms of how it attaches to the roof, electrical architecture decisions. There's a lot more opportunity here in how we can make systems more efficient and easier to install. One more piece of context on our panel supply agreements. When I joined the company, we were single-sourced, and we were contractually not permitted to work with other panel manufacturers. I don't think you'll meet a CEO who says single sourcing is a great idea. You know, there's a lot of limits to single sourcing, and when we're in a high growth market like this, where we believe consumer demand is gonna accelerate, we really wanna be able to have, you know, the ability to work with multiple partners or partners who can grow and scale to meet our needs. We're quite pleased that we have the ability to develop this partnership, and we look forward to telling you more about that in the days. Great, thank- Weeks and months to come. Thanks, Peter. Thanks, Nate. Just a quick follow-up here on your dealer accelerator strategy. Yeah. I think some of our checks with, you know, post deal, your dealer conference suggest, you know, you guys are making the investments in Freedom and the other one, and there might be more ahead. It sounds like these are more minority investments as opposed to the Blue Raven strategy of taking them out completely. Can you talk about the financial approach and the difference there? Do you expect. How many more minority investments might you make? How much total capital do you think you might spend? Maybe talk through the advantages and disadvantages of, you know, doing the minority versus the full acquisition. Thanks. Thank you. The Dealer Accelerator Program, we feel like is a huge innovation in this space. We really feel like it's an opportunity to change the game. We're locking in the highest quality installation capacity in the U.S. That's kinda how we're thinking about it. You know, there's installation capacity, and then there's the best of the best dealers in the U.S., and those are the ones that we're interested in doing the accelerator program with. It was really inspired, as I said earlier, by this notion, you know, there's more than one way to grow this business rapidly. One way is through acquisition. You know, we'll continue to be interested in looking at acquisition opportunities. We'll take a look at those constantly as we evaluate our business. There's a new model here that we feel like we've invented, which is, there's a lot of companies that are capital constrained, and if they weren't capital constrained, could grow a lot faster. If they can keep the same high quality DNA, and we increase their loyalty to SunPower, you know, it's kind of a win-win-win. We really love the investments because they're high return on investments. You know, these investments that leave us with an equity share, you know, we think will pay back in two years, three years, because we get the immediate benefit of them selling our full product and financial services line. It's great for the dealers because it gives them influx of capital to allow them to grow much faster, and therefore, they're actually building a larger and more valuable business. Because we're a shareholder of theirs, you know, we both benefit together. We really think it's quite an innovative model. I will tell you that, we don't have a number in mind for number of dealers. As Manu talked about, we're not capital constrained, you know. We're gonna make rational decisions based on who meets the criteria, who would be our best growth partners as we go forward. We probably will over-index on people who are outside of California and people who are not using our full suite of products today, and we'll probably focus more on those. Manu, what else would you add to- I think, Peter, you covered it well. Okay. Thank you. Thank you, Phil, for the questions. Hey, everyone, Brian Lee with Goldman Sachs. Hi, Brian. Maybe just following up on that, Peter. A little bit more around the scope of the Dealer Accelerator Program. Are they fully exclusive to you on all products and all geos when you make this minority investment? Is there sort of a duration to that exclusivity, if that is the case? With the way we're thinking about it is that we would like to have those deals result in full exclusivity over time. As Jason mentioned, you know, for example, with financial products, there is some integration work that needs to take time, and, you know, this may take place over the first couple of months or quarters or years as it plays out. It's our intent when we make these investments that it really is kind of a we're all in together on both parties. They're all in with us, and we're all in with them. We do have other places we could invest our capital. This is a high payback. You know, from our point of view, it's a great investment for us. I think on the scope side, I think this program, should these first two investments be successful, you know, I think will inspire us to wanna do many more. As June talked about, we have a multi-channel strategy, and this is just one of our many levers that I think we can pull, you know, to grow the business more effectively. Okay. Makes sense. Manu, anything else you wanna add to that? No, Peter. I think, you know, the elements of how we think about is geographic coverage, full suite of products, shorter payback. Those would be the top three selection criteria. Okay. Manu, during your presentation, you showed the kinda 2025 targets, doubling the market growth rate. I know you didn't quantify that, but, you know, most folks who cover the vertical would think, you know, at least 10% annual growth. If we use that as a baseline, you know, you're implying kinda 20% growth out in 2025, doubling the market growth. $3,000-$4,000 of EBITDA per customer, I mean, implies you're gonna get to something like $400 million-$500 million of EBITDA out into the middle part of the decade. Is that the right message? Or what would make that math not play out the way that some of those parameters you rolled out would suggest? Let me take all your questions and comments, one by one. I think you're thinking about it the right way. Take the market, take an assumption that we'll double the market, and then, fairly straightforward model, multiply it by the number of, EBITDA per customer, and then you get to an answer. That's one. That's, I think you're modeling about it correctly. Second, you asked about why we are confident in our ability to achieve. As I take a step back. We've gone from a single product to a set of integrated products. Layer on top of that SunPower Financial, which gives us incremental margin on a per customer basis. And I think the early signs are really powerful as to what Jason showed you. The last element is around investment. We've been very disciplined about our investment over the last several years that you've seen, including corporate investment and then the growth of the platform investment is at half the rate of our customer growth. I think it gets you into the zip code from how to model it. Okay, thank you. Mike, do you have a question online you wanna give? Then we'll go back to the audience here. Yeah. Could somebody run a microphone over to Mike just so everyone can hear on the webcast? Sorry. So the- Hang on, Mike. I wanna make sure the folks in the webcast can hear you. Okay, thanks. Oh, on it. All right, this is good. One question coming in from Ben Kallo. We have, do you plan on adding additional panel suppliers, and yeah, can you talk about the mass market strategy going forward as well? Yeah. No further comments yet on our panel strategy other than the you know the announcement we made today that we're in late discussions with First Solar. I think many of you know our current panel supply arrangement takes us through 2022 and 2023. We'll have at least a couple of panel providers during that window, and then we'll see where we go from there. I think on the mass market segment, Nate, what else would you add to what I mentioned earlier on how we're thinking about serving there? Yeah. I think, there's a lot of opportunity actually with First Solar to satisfy both those markets, so we're having active discussions with them on that topic as well. Yeah. If I go back to the dealer conference, I think from our dealers' perspective, one of the things that we've built with this company is exclusivity and distinctive product. That's not gonna change. This in no way, as we move into the mass market, changes that equation. I think we're gonna have something that for the mass market looks very different, and it's very unique for our dealers and for our SunPower Direct channel, and that gives us the confidence that we could achieve the same kind of market share in the mass segment that we've achieved in the premium segment today. Also a follow-up, just one follow-up from Ben also on cells, on battery cells. Can you talk about cell, you know, the supply chain for batteries right now, how that's shaping up for the second half of the year, and how we will get higher margins on SunVault as we progress with new batteries? We're pretty pleased with our supply chain performance. I think Nate did a great job of pointing this out. It is daily, you know, hand-to-hand combat of the supply chain. I think anyone who gives you a view longer than a couple months ahead of time is in a different business than we're in because we're constantly trying to figure out creative ways to stay in stock and get all the components we need and work with our suppliers. I think on the battery space, we feel very, very good about 2022. Yeah. Nate, do you wanna talk a little bit about some of the cost improvements that we're making? Yeah that will flow through later this year? I think it's important to note too, we use LFP, so nickel shortages are not impacting us like they do impact our competitors. We've put in place a number of cost reduction initiatives. As I mentioned, it's not only on the hardware side, it's also on installation, commissioning. I think we wanna take a system level approach and realize these cost savings over time. Let's take some more questions from the room. I know I saw some hands up in the room. Hi, Julien. Hey. Good morning, everyone. Thanks for the time. Congratulations again, Peter. So, Manu, I wanna go back to your presentation and the last question just to clarify things a little bit because, again, if you use that 20% growth rate and you cascade it forward, seems like you end up in the $460-ish million ballpark again, consistent. Just to clarify that, on the platform investments, that nets against it, right? So the $70 million from 2022, you cascade that forward, kinda nets against that mid-$400 million number to end up in a mid-$300 million number. Is that fair? That's like a formal Adjusted EBITDA? I'm not trying to nitpick. I'm just trying to make sure- No, no. I'm right. Let me give you the framework, and then. Go for it, please. You have our comments, and you'll have your own perspective from an assumption perspective. The math to get Adjusted EBITDA is number of customers times Adjusted EBITDA per customer and then you subtract the platform investment, and that gets you to Adjusted EBITDA. We talked about growing the top line or the number of customers at 2 x the market growth rate. We gave you a range for the Adjusted EBITDA per customer. We are intending to invest in our platform and grow our $70 million rough number that we have for 2022 at a rate half the market growth rate, and that should help you model the platform investment and then gets you to the... Right adjusted. Right. The platform investment goes from, like, roughly $70 million-$90 million-something or $90 million-$100 million. Yeah. Right, exactly. Based on the assumptions you make. Right. Yeah, you end up at, like, $360 million-$370 million or something like that. I think you're thinking about the model correctly. Okay, excellent. Thank you. Sorry, I know that's soft guidance. No problem. The one thing I'll say real quick, Julien, and we'll take your follow-up question is- Yeah, please. This business leverage to me is the biggest compliment you could do as a business leader, you know? One of the reasons we brought in the talent we did at these certain positions is that I see a world where we're gonna go from 500,000 customers to millions of customers. We don't wanna scale our business one for one. We don't wanna scale costs for revenue one for one and keep the same margin model we have today. We want to expand it. We want to increase that leverage as Manu talked about. These guys up on this stage know how to run a business going forward that has more and more leverage. If we can keep our platform investment at half our customer growth, that's gonna be a really terrific company that we're building. Excellent. In fact, two clarifying questions on that. Given that sort of compounding nature that you just described, Peter- Yeah ... is it fairly linear, or is it sort of back-ended weighted as you think about this sort of like accelerating? Or have you figured out a way to kinda ease into that, if you will, in kind of a straight line fashion on EBITDA? I think of it this way. We begin to see already this year some scaling, but it's like an annuity. You know, it builds and builds and builds and builds. If you use the examples that Nuala gave, every time we fix something at the root cause, that never happens again. The benefit of it in 2023 is small. It's really the compounding benefit of 2023 and 2024 and 2025, it never happens again, you know? That's exactly the experience I had leading the Amazon Marketplace, is that we really began to get more leverage in the business. The thing I don't know is, you know, where does the business go five or 10 years from now? How do we choose to reinvest it, and is there a different model we'd consider after this initial five-year period? I can clearly see a path because anytime you see manual work and slow processes, it's an opportunity for great innovation, and it's a great application for software. That's the primary way we feel like we can get a lot of leverage in the business. If I can, just a final clarification here. As you think about that model that you guys have built out here, how much of that, shall we call it billion plus, right, almost seems like there's a plus on that, of latitude, shall we say, is assumed to get there, right? How much are you taking of that and reinvesting in the business to end up in that 25 metrics? Or said differently, how much is remaining that, you know, you can, again, reinvest and accelerate, right? I'm just trying to understand how much, quote unquote, dry powder you might have. Yeah Assumed through that period. Yeah. Manu, do you wanna comment on that? Yeah I'll comment. I mean, the way to think about it is we will be thoughtful about how we think about capital deployment of $1 billion. I would think of that much more in terms of the flexibility that we have to go get to our numbers. The numbers we shared or the model we shared with you is primarily organic. The one other comment I'd add to that is on this $1 billion we have. We're looking for two types of investments that help accelerate our customer growth and investments that help us accelerate lifetime value per customer, you know. That's our mindset. OhmConnect is a great investment because it's gonna allow us to do both. Blue Raven, we believe, is a great investment 'cause it's allowing us to do both. We're, you know, we're gonna look across our portfolio of opportunities, but we're really looking to invest there if we can find opportunities that help us accelerate beyond our platform investments, both of those metrics. Thank you. I think I saw another question here in the middle. Yes, sir. Yes. Kashy Harrison, Piper Sandler. My first question may be a little bit more policy related. Can you speak to the impact of the Department of Commerce's recent announcement that they're gonna be investigating the AD/CVD, anti-dumping and countervailing duties? How does that impact SunPower, if at all? How does that impact the mass market strategy? Just any sort of commentary around the risk of that. Mm-hmm would be greatly appreciated. Sure. I have a follow-up. Sure. It's hot off the press, as you mentioned, so we're still digesting and learning and it sounds like it's gonna take a little while for it to play out. The quick answer I'd give you is it doesn't look today like our current panel supplier is part of that process at all, so we don't expect any impact on our current business. The potential arrangement that we talked about with First Solar, obviously First Solar has onshore domestic production, so we don't anticipate that they would be impacted by that at all. Right now, our belief is this isn't an issue for us in 2022 and 2023, but I will say it's early days, and we need to learn more and see how this plays out. We don't expect any impact today. That's helpful. Thanks. My follow-up question is, you know, one of the interesting things just looking at this presentation is, you know, right now you have a team up there, and there's like one solar guy really, and everyone else is an outsider. It's a, you know, a solar company that's run by non-solar people. My question is, as outsiders looking in, just qualitatively speaking, you know, what do you see that's, you know, basically broken about the way, the residential solar industry is being run right now? You know, what are some easy ways you think you can fix it? Just any color at all as an outsider. Yeah Looking in would be greatly appreciated. Well, let me give you a little bit of color to begin with. I know it probably seems that way because a bunch of folks announced they've only been here less than four months and five months, and I know some of you, this is gonna make you laugh. Manu's been here four years. He's a veteran up here now. Let me assure you know, we have 2,499 people behind us that are solar veterans. They're industry veterans. They understand this business very well. It's, I don't wanna mislead anybody. We're still heavily engaged and still heavily run by people who are experts in solar, if you will. I think the opportunity that I saw is the opportunity for innovation in addition to hardware innovation. For all of the leaders that you see up here. They have demonstrated the ability to innovate in their domain of expertise, whether it's customer care or marketing or financial products that's distinctive and unique that I think would benefit the solar business very well. Some of you, I don't know if I've told you this story before, but, I signed up for SunPower, and I was a solar customer before SunPower with a different brand. I've gone through the experience twice. I agree with the customer feedback that people say in the industry. It's slow, it's manual, it's cumbersome. You know, it isn't like buying something in e-commerce on the internet. It isn't quite the same analogy of, you know, it's not quite as easy as buying a book. It is a construction project. I think there's an enormous amount of innovation that we could make here that I think could make a big difference in the company. How about any other comments from the panelists on where you see big innovation? Jason, you talked about software a little bit. What do you see on the financial product side? 'Cause there's a great opportunity there for innovation. Yeah. I would echo, it's just too hard to pay for it, you know? I think we can make it a lot easier. The irony is the default rates are super low in solar, and there's a good reason for that. You're improving your home. You're saving money. You know, it's not rational to default on a solar loan. It's odd there's that much friction on the front end for a product that's that safe. I think there's a big opportunity to fix that. I think, Nuala, you talked about your observations coming here. I mean, there's just enormous opportunity. You went through, we're gonna eliminate the root cause of why people have to call us. We're gonna automate. That's gonna lead to, I think, a lot fewer contacts and a lot of big innovation and time. I think, regarding the solar industry, what I can see is that our opportunity is really to understand what our customers are experiencing, and because the process is so complex, you know, you've got the sale, you've got the install, you've got everything going up on the roof, we tend to overly focus on that as an industry. What we don't focus on is helping the customer really get the best out of their system and truly understanding the benefits of solar. I think there is a huge opportunity for the solar industry, for any businesses in solar, to actually understand, first of all, let's just service the contact when it comes in. That's great. Let's create a great experience. That's why we have a 4+ star rating. The next level of customer care is really removing that so that it is easier and simpler for customers going forward, and that's what I'm most excited about. Well said. I think we've been very hardware engineering centric company and industry. Some of that's very positive 'cause we've come up with, you know, really innovative, wonderful products. The question now is, can you blend that with these new skills, you know? Can we be more customer centric? Can we be more software centric? Can we really change this business in a very positive way? That's our goal. I'm gonna ask another question. Sorry, Mike. Yeah from the virtual audience. This is a good question from Jonathan Hart, saying you didn't mention anything about 25 by 25 in the presentation. Maybe you could make a comment about that. Oh, terrific. Thank you for the nice question. Yeah. We took a bold stance last year. We announced an initiative called 25 by 25, and it's our intent to greatly improve the accessibility and the availability of solar across the country. Many companies have diversity goals, so the first 25% is really about the diversity within our leadership team and our company. The two parts of it that are distinctive are the following: We're committed to have 25% of our dealers and partners be from minorities and underrepresented communities. No other companies in this space have made that commitment. We secondly have made a big commitment that 25% of our customer base will be from minority and underrepresented communities. This whole dialogue around people can't afford solar, we're flipping it on its head, in the other direction. We're gonna ensure that we build financial products, and we build solutions that are accessible to all. When you guys see. You know, I think I read the number. There's something like 50 million, 60 million, 70 million people that live paycheck to paycheck, and then you see what's happening to their utility bills, it's shocking. It's hard. I saw a story recently. People are making trade-offs between utility bill payments and, like, basic necessities. You know, it's really important as an industry, and it's very important for us as a company to make sure that solar is accessible, and you could argue solar's most important for the people that are living paycheck to paycheck and who are in underrepresented minority areas and underrepresented minority communities. We're committed as a company to make a big difference there. We've tried to take a leadership position, and we've really encouraged our peers and our competitors to take similar positions 'cause I think, as an industry, it's really, really important we improve the availability of solar and make it something that's more broadly available. Jon has another question. This has to do with the inverter strategy, as we go forward. As we're looking at mass market panels, are we gonna stick with an AC inverter strategy, or are we contemplating maybe branching out into DC, a DC strategy? Which he thinks will be simpler and more efficient. Maybe you can comment on that too. Thank you. Yeah, I'd say it's premature to comment on microinverters. I think we have a good supplier arrangement today. We're quite pleased with how that's working. I think that goes through the first quarter, first half of 2024. There's really no change in our strategy as far as we're concerned for 2022 and 2023, and we'll see where those discussions go from there and beyond. But I would agree with the premise of the question. I think, you know, although customers never ask us about what microinverter's on and, they don't ask about these more engineering pieces of the world, I do think it's intriguing to look forward and say, "What's the next set of innovations across all of our hardware products?" Nate and I and many others on our team are thinking about what's the next generation of microinverters and AC/DC conversion that would make sense. Thank you for the question. I guess I'll take the question from the very back there for those- Yeah. Thank you. Hi. Mark Strouse with JP Morgan. Thanks for having us today. Hi, Mark. I just wanted to follow- up on your response to Kashy's question earlier. So you talked about you're protected from the risks you think of the anti-circumvention case. Taking the other side of that coin, though, what do you think the opportunities are to the extent that you have supply and some of your competitors may not? I'm just thinking back to the slide that you showed about how important the land grab is. Yeah ... obtaining the customers now. What is your willingness and your ability to kinda lean into that to secure those customers in this kind of uncertain time? How do you weigh the near term versus the longer term profitability? I think it's a great question. Our willingness is high, as you heard from our presentation. We're leaning forward, we're leaning in. You know, if we could accelerate our customer acquisition 10x this year, we would go do it. We're quite excited to go do that. I think the supply chain challenges are real. You know, they're not just for our industry, they're across all industries. I'm not telling you guys stuff that you don't already know. I think there are critical shortages of things like chips, and it's our understanding that it may take us a year or two to work through that. I have a feeling our land grab, although we may be in a much better position than our competitors from a panel point of view, what I don't know yet is, you know, will some other part of our ecosystem become a constraint and become a bottleneck for that? I will tell you, one of the reasons we brought Derek on board and one of the incredible things that Nate has done is that we're trying to innovate in our supply chain like we've never had before. We really wanna have our own IP ownership, we wanna have multiple supply partners, and we really wanna have the ability to flex up more quickly. You know, this is the true test of a true consumer company. You never wanna keep customers waiting. You don't wanna have any out of stocks. I feel like as an industry we're not quite there yet, but we're working aggressively so that if that opportunity that you describe comes apart, then we're ready for it. Okay. Just as a follow-up on the EV charging business, you know, one of your larger competitors has announced this relationship with an auto OEM. Does that become part of your strategy going forward as well? I think so. I think we would find those partnerships attractive. I think they're attractive for both parties, frankly. I will say, we've been actively engaged with multiple OEMs, and we have been since my arrival. I think the bi-directional charging opportunity that Nate talked about earlier is a potential game changer, because being able to leverage your vehicle battery and your SunVault battery to back up your home is just an incredible opportunity. The part that we really believe we're gonna be distinctive at is a couple. One is, someone's gotta figure out how to make this customer experience work, and we think we're the ones with the software expertise to build that experience holistically in the mySunPower app. Two, most bi-directional chargers require either a new main panel upgrade, which is disruptive and very expensive, or the implementation of a product that we already have called Hub+. For the autom akers, they take a look at someone like SunPower and they say, "Wow, you guys already have Hub+. Our customers want bi-directional chargers. They want high-speed chargers. We need someone who can actually execute that in the field." I think there's gonna end up being, you know, the opportunity for good partnerships here. On the OEM front, I would probably say, you know, stay tuned. I don't have anything to announce today, but that's something that we're certainly interested in. Nate, anything else you wanna add on the opportunity? That was a great summary. I think just what's exciting is you layer VPP and grid services over all this, and the opportunities are immense. Yeah. I think from a consumer standpoint, we see it just being so exciting as we go forward. You know, the opportunity for you to contribute more to the grid, to make money from that. Yep ... to power your life through clean and renewable energy, it's quite exciting. More questions from the audience? I'm sorry, we can't see very well. Kashy, yeah. I'm over here. Oh, sorry. Yeah. Apologies. Joe Osha at Guggenheim Partners. Two totally unrelated questions. The first, Peter, you alluded to some of the shifts in net metering policy that we're seeing, and obviously it's not gonna be as bad as that initial PD. That said, the general trajectory, I think, in net metering policy in this country is towards somewhat less generous rules. I'm just curious how you thought about that in putting together some of these longer term financial targets. I have a completely unrelated follow-up. Okay. Yeah, on the policy front, you know, gosh, if as a, as a business owner, you're constantly pivoting back and forth between thinking 10 and 20 years out and 10 and 20 hours out. On the policy side, you know, it makes sense to me at some point that renewable energy will be so self-evident and so positive for consumers that, you know, I would think policy incentives will be less necessary and less required over time. That's fine. I think that's our opportunity as an industry to kinda earn our way, and we're making investments that would allow us to position ourselves very well in that environment. However, having said all that, when you read the UN report about the damage we will do to the planet by 2030, it's urgent. The clock is running. We gotta get going. The policy incentives make sense. The government should be trying to help accelerate renewable energy in this country for thousands of reasons, and so we're very comfortable with the fact that they exist today. I think longer term, should they disappear or diminish in size, we feel like we're gonna build a strong, sustainable business with very loyal customers because we're treating them well, that will be able to survive the test of that change should that happen, you know, in five or 10 years down the road. It'd be fair to say, just to amplify that a bit, that, you know, once we do see NEM 3.0 in California, that's not gonna have you tearing up your business plan? Well, listen, until I actually see what it says in writing, I would like to reserve the right to tear up any paper that I would like to, if you're okay with that. You know, I really feel like the voices of people were heard, and I think to give the CPUC credit and the Governor credit, they're listening, and they're trying to find a solution that I think works for all people in California, and that's the right thing to do. I will tell you that, you know, the number of people who have residential solar in California is large and growing, and they're very engaged, and they're very active, but the number of people employed by renewable energy in California is huge, you know. In addition to SunPower, there are many other companies involved in this space that feel very, very passionately about this issue. Those voices were heard, and I think, you know, my guess is that the California NEM changes will reflect those voices and those points of view as well. We do feel like the next generation that gets announced will be an improvement over certainly what was announced in December. What was announced in December would have been, in my opinion, you know, reckless for consumers and certainly harmful for employers in renewable energy. Thanks. Just the second question, I think we'll all agree you've got a good thing going with your inverter supplier relationship. When you listen to them talk, though, their long-term vision seems to position them more as an emerging competitor to you, if you look at what they're talking about. I'm wondering how you handle that relationship over time. Yeah, I think that's a great question for us to explore as we go forward. I think, you know, from a customer standpoint, as I said earlier, when you take a look at the customer research of why people buy solar or don't buy solar, no one mentions, you know, things like microinverters. I don't think there's a customer-centric reason of why you'd have to use one particular product over another. I would, having said all that, I would say, you know, we're pleased with the relationship today, and I think business partnerships can continue over time. Operating in the technology space, there are many companies that are suppliers for each other and competing with each other in other parts of the business, so the business world is changing a little bit. It's evolving a little bit. You know, there are people. I think there's different words where they combine these words together, but you can both be a competitor, and you can also be, you know, a supplier-customer relationship, and both of those things can coexist together. I would say, without commenting specifically on that relationship, you know, we're interested in exploring all of our supplier relationships. One of the things I will tell you that I've enjoyed in my first solar discussions is they are not trying to be a residential solar company. They're very good at what they do, and they really wanna be, you know, I think their goal is the same as ours. How do we change the world, and how do we share a complementary role together? That sounds like a great way to have a partnership together. I'll leave it at that. Thank you. Let's see. I think there was another question. Kashy, yeah. Microphone's coming to you. Yes, thank you. Just a quick follow-up on the financial questions for Manu. You know, the guys did some quick math on, you know, where EBITDA could land. How do you think about the conversion of EBITDA to free cash flow? I know you're not gonna comment on what you might use that free cash flow to do, but just what percentage of EBITDA becomes free cash flow long term? And then- We have a positive operating cash generating model in the residential business, and that business has traditionally performed well against that model. Without getting into specifics, I would assume a high percentage of the EBITDA gets converted to operating cash flow, the delta basically being some CapEx, but mostly working capital timing. Okay. My next question is, I was wondering if your family home opportunity in California is that under the new homes mandate? Number two, broadly, as you move outside of California into all these other states, you know, how penetrated is solar within the new homes outside of California? June, do you wanna start off, and then I'll give some color commentary on that? Sure. Yeah. You're right. There is a mandate in California, which is accelerating the opportunity in California. We do see the opportunity outside of California as well, even though it is not a mandate. You know, the strategy isn't to be singularly focused on California. Of course, we will take advantage of the mandate here. One of the quick things I'll add about the new home builders that we have great partnerships with is, from the customer experience, it's so wonderful to be able to add solar storage and EV charging at the same time you do your mortgage. You know? When you think about a new home builder, the deals we've done historically have made it optional outside of California. What we're seeing is more and more attraction to it being the standard part of how you go build a home. The fact that you can roll your solar cost into your mortgage makes it very efficient for the customer. It's, you know, it's a few more dollars a month in your mortgage payment, and yet you get enormous benefit right off the bat. I think we're seeing, you know, there just being a great opportunity there. On multifamily homes, I think we're just getting started in that business, but for the reason that Nate laid out earlier, you know, about the ability to combine these technologies together and get great synergies across these communities and neighborhoods, we feel very good about the opportunity there, but I would say it's still in the early stages. Anything else, Nate or Neil or June you wanna add? Yeah. Okay. I have another one from the internet. Yeah, Mike. Sorry. This is on SunPower Financial. Ben Kallo again, asking, can you talk about how you can balance rising interest rates with lower cost and lower credit score customers while maintaining low default rates? Yeah, that's a great question. First of all, we focus on the spread, the credit spread that is charged for solar. I don't know if you remember the slide, but it's currently 270 basis points over swaps. That has compressed since the last time we announced our cost to capital. The reason for that really is our track record. What we've found is the customer base is very resilient. You know, in lending, there's this notion of a debt-to-income ratio, DTI. The debt-to-income ratio in every loan product I've ever seen goes up after you do the loan. That is to say, the total amount of debt service payments divided by the total disposable income gets worse after you take out a loan. Solar loans and leases are the only product I've ever seen where it actually improves for most people because they're saving money versus their utility bill, therefore net-net, their sort of kitchen table finances have improved after taking on additional indebtedness. That gives us the opportunity, and Peter alluded to it in the 25 by 25 question, to serve people who are lower income and lower FICO and do so safely. In fact, they're the ones who actually need the solar more, right? 'Cause a $20 a month savings for those folks is much more material than it would be for me, for example, right? It is a very interesting market. The usual rules don't apply as cleanly. Of course, FICO still matters, and of course, we are rigorous in our credit policies, but there are opportunities to expand the funnel and keep loss rates extremely low, and therefore it keeps the cost of capital, when measured in terms of credit spreads, very, very low. Mike, we'll take another question online. Yep. Another question here from Maheep Mandloi at Credit Suisse. Can you break down how much of the $1,000-$2,000 of incremental EBITDA per customer is coming from SunPower Financial? How much is from EV battery attach rates? And then also he wants to know if we can quantify what is the cost of capital at the asset level, you know, as we're thinking about that? Go ahead, Mike. We'll start with the second question first. Maheep is a good historian. We've said in 2021 that our cost of capital was 5.5%, all in, blended, and we were expecting an improvement. The number Jason showed you was less than 5.25%. We are seeing better than what we had earlier told the community, the investor community around our overall cost of capital. That's largely driven by a lot of the work Jason and his team has brought in, being new to the company but also new to the industry. This is where fresh thinking helps. As you think about our bridge from, I'll use the midpoint, $2,200 to the midpoint for 2025, $3,500, a large portion of that is driven off increasing attach rates, some for SunVault and EV charger. We've said we've typically made $1,000 per customer on SunPower Financial, and those attach rates are going from, you know, 40%-45% to 65%-75% range. That's easy math in terms of how do you get to the contribution of SunPower Financial to the doubling of the EBITDA per customer. He has a follow-up too. He wants to know more color on the pricing agreement with Maxeon, considering is this fixed, you know, for the rest of the year if the anti-circumvention case winds up pumping up prices 50%, for instance, in the next few months. Are we protected from that? Or how insulated are we in our Maxeon contract? Yeah. Our Maxeon contract locks in prices and volumes and exclusivity in various forms between now and through October 2023. On the premium product M-Series, I think we've talked about we have an exclusive with them through October 2023. On the X-Series product through the end of this calendar year. I would say, you know, we feel comfortable and confident that the agreement we signed will give us the prices and the volumes that that both parties are committed to. I think we feel good about that as we go forward. We have time for two more questions. How about if we take one more here live and we'll go one more online. Is there anything else in the room? Apologies, 'cause we can't see very well here. Mike, oh, sorry, one more. Yeah. One more quick one here, if I can squeeze it in here. Just can we talk about the breakdown of how do we get to the $3,000-$4,000 in a little bit more detail? Again, obviously, you guys put those blocks, et cetera, but can we break that down a little bit more granularly as best as we can, or at least as best you know thus far? Right. Just to be respectful of time, I'm gonna try my best now and then Mike and I can follow- up with you, right? If you take the bridge and go with the four building blocks I talked about, right? First is SunPower Financial, $1,000 more per customer times increase in attach rates. That gives you a blended average. SunVault is gonna become more meaningful, both from a overall ramp perspective, but also from a margin perspective. As the product ramps and we work through our inventory, the margin on a per sale increases. That is not as high or significantly lower today compared to the 30%-40% attach rates we talked about for 2025, both for SunVault. EV charger is de minimis today, so you get a few more bucks on that. That's kind of bucket one and two. The third bucket is reduction of CAC. I'll point you to the chart Nuala showed where we are talking about CAC reduction in 2023 relative to today's level. There are specific initiatives to that, and we've talked about a 20% CAC reduction. You can model that in as we think about going from 2022 - 2025. The last element is reduction of install cost. There is a lot of opportunity to reduce the install cost on a per-customer basis, reduction of cycle times, better supply chain management, and that kind of rounds up the pieces. There's no way, again, being respectful of time, to bucket that out as percentages. Like, I get that you're close to it, but if you were to say it's a quarter, it's not. It's clearly not that, if I hear you right. If you were to bucket it out to try to more- The large portion of the growth is being driven by increasing attach rates. The next big bucket is reduction of CAC, and then the install cost is the third. Thank you. Thank you. Mike, one last question from online. Brett Castelli at Morningstar wants to know what is the intended size of the Dealer Accelerator Program? Like how much of an investment are we planning on putting into that program, and what's the kind of the average investment we might put into individual dealers? Yeah. I think we touched on this a little bit earlier. We haven't talked about an investment level yet. I think we'll, you know, as Manu laid out, we have investment capacity, so that won't be a problem, and it'll really be, you know, how many candidates do we think are worthy investments and how well do our first investments go in terms of our payback and the benefits here. I will say, from the dealer conference the other day, after we announced the first two dealers, we probably had interest from, you know, 10, 20, 30 more dealers over the past couple days. That was just from the crowd that was here. We have a larger population of our dealers that had to participate virtually or wasn't able to be here in person. We do expect the interest to be high, and I think we laid out the criteria before of what we're interested in. It's a program that, if successful, we would be excited to make scale, and we think it gives us another unique growth lever that's very different from those in the industry. I wanna thank all of you. It's been terrific to be here in person with you again. We're very excited. I hope you got that from all of us about our future. We're very excited about the investments we're making. 2021 was really a pivotal year in SunPower history. We fully pivoted to become a residential solar company, and we were excited to share with you how we're thinking about the business for the next five years, what our strategy is, and why we think that's a great investment. I ended the dealer conference and I'm gonna end our discussion today in the same way, which is we were able to share a lot of stuff with you that's ready to be shared, but there's a whole lot more that we haven't been able to share yet, the work behind the scenes. It's only the beginning. We're very, very excited to share more with you over time. Thank you very much for all your time, and thanks for all those who webcasted as well. Really appreciate that. Thank you.