Sunrun, the nation’s leading provider of clean energy as a subscription service, today announced financial results for the quarter ended March 31, 2025.
“The first quarter was another strong quarter for Sunrun as we exceeded our volume and Cash Generation targets by significant margins in what is seasonally the slowest quarter of the year. We are focused on delivering the best product for customers, underwriting volumes with strong unit margins, optimizing our routes to market, and driving cost discipline, including leveraging AI for innovation, creating significant operating efficiencies and quality enhancement. This has allowed us to gain market share in recent periods and produce strong operating and financial results,”
“It is a dynamic environment for tax policy and tariffs. Like many companies across the country, we are controlling what we can and are ready to adapt to changes that may occur. Sunrun has faced periods of major change over the last few years, and we used it as an opportunity to become even stronger. We believe the tariff outlook is manageable, and we will still generate meaningful cash this year.”
– Mary Powell, Sunrun’s Chief Executive Officer.
“We delivered our fourth consecutive quarter of positive Cash Generation and are reiterating our Cash Generation outlook for 2025, We have a strong balance sheet with no near-term corporate debt maturities and have paid down recourse parent debt by $214 million over the last four quarters, including a $27 million paydown using excess cash in Q1. As we increase our Cash Generation, we will continue to further pay down parent recourse debt and are committed to a capital allocation strategy beyond this initial de-leveraging period that drives significant shareholder value.”
– Danny Abajian, Sunrun’s Chief Financial Officer.
First Quarter Updates
Storage Attachment Rate Reaches 69%: Customer additions with storage grew 46% during the quarter compared to the prior-year period. The storage attachment rate reached 69% in Q1, up from 50% in the prior-year period. Sunrun has installed more than 173,000 solar and storage systems, representing over 2.8 gigawatt-hours of networked storage capacity.
Continued Strong Capital Markets Execution:
In March 2025, Sunrun placed a $369 million securitization of residential solar and battery systems. The securitization was placed privately, given strong interest from large alternative asset managers in the private credit markets. The securitization was priced at a yield of 6.36%, in line with the yield of our January securitization. The weighted average spread of the notes was 225 basis points, which is approximately 28 basis points higher than our securitization in January 2025. The higher spread followed overall market movements in credit spreads for similarly rated credit. Similar to prior transactions, Sunrun raised additional capital in a subordinated non-recourse financing, which increased the cumulative advance rate to well above 80% net of all fees, as measured against the initial Contracted Subscriber Value of the portfolio.
In January 2025, Sunrun priced a $629 million securitization of residential solar and battery systems. The oversubscribed transaction was structured with three separate classes of A-rated notes, only two of which were publicly offered. The weighted average spread of the notes was 197 basis points. Similar to prior transactions, Sunrun raised additional capital in a subordinated non-recourse financing, which increased the cumulative advance rate to well above 80% net of all fees, as measured against the initial Contracted Subscriber Value of the portfolio.
Paying Down Recourse Debt: We continue to pay down parent recourse debt. During the first quarter, we repaid $27 million of recourse debt, reducing our borrowings under our Working Capital Facility and repurchasing a small amount of our 2026 Convertible Notes (as of March 31, we have $5.5 million of these notes still outstanding). Since March 31, 2024, we have paid down recourse debt by $214 million by repurchasing our 2026 Convertible Notes and reducing borrowings under our recourse Working Capital Facility. We have also increased our unrestricted cash balance by $118 million and grown net earning assets by $1.6 billion over this time period. We expect to pay down our recourse debt by $100 million or more in 2025. Aside from the $5.5 million outstanding of our 2026 Convertible Notes, we have no recourse debt maturities until March 2027.
Expanding differentiation & innovating with Sunrun Flex: We recently introduced Sunrun Flex, the first solar-plus-storage subscription designed to adapt to households’ changing energy needs. This new offering marks the most significant innovation across the solar industry since Sunrun introduced the residential Power Purchase Agreement in 2007. Flex helps families plan for their growing energy needs, whether it’s a growing household size or adopting a new electric vehicle, by installing a solar system sized above their current energy usage. Customers enjoy a low, predictable monthly minimum payment and only pay for extra energy if and when they use it. Flex households also benefit from battery backup during outages and the new feature of earning Sunrun Rollover Credits—a first in the solar industry.
Improving Grid Stability with Virtual Power Plants: Our CalReady distributed power plant has more than quadrupled in size as the summer heat begins to stress California’s energy grid. More than 56,000 Sunrun customers’ solar-plus-battery systems — totaling approximately 75,000 batteries — will provide critical energy to California’s grid during times of high energy prices, heat waves, and other grid emergency events while simultaneously lowering energy costs for all ratepayers.
Key Operating Metrics
Commencing with the first quarter 2025 reporting, Sunrun has modified how certain key operating metrics are calculated. Please refer to the appendix for the updated definitions and refer to the accompanying presentation posted to the Sunrun Investor Relations website for additional information. Prior periods have been recast to reflect the current methodology for comparison purposes.
In the first quarter of 2025, subscriber additions were 23,692, a 7% increase compared to the first quarter of 2024. As of March 31, 2025, Sunrun had 912,878 subscribers. Subscribers as of March 31, 2025, grew 14% compared to March 31, 2024.
Storage capacity installed was 334 megawatt hours in the first quarter of 2025, a 61% increase from the first quarter of 2024. Solar capacity installed was 191 megawatts, an 8% increase from the first quarter of 2024.
Subscriber value was $52,206 in the first quarter of 2025, a 15% increase compared to the first quarter of 2024. Contracted Subscriber Value was $48,727 in the first quarter of 2025, a 14% increase compared to the first quarter of 2024. Subscriber value figures for the first quarter of 2025 reflect a 7.5% discount rate based on observed project-level capital costs, compared to 7.6% in the prior year period. Subscriber value reflects an average investment tax credit of 43.6% in the first quarter of 2025 compared to 35.2% in the prior year period. The storage attachment rate was 69% in the first quarter of 2025 compared to 50% in the prior year period.
Creation costs per subscriber addition were $41,817 in the first quarter of 2025, a 7% increase compared to the first quarter of 2024.
Net Subscriber Value was $10,390 in the first quarter of 2025, a 66% increase compared to $6,247 in the first quarter of 2024. Contracted Net Subscriber Value was $6,910 in the first quarter of 2025, a 90% increase compared to $3,641 in the first quarter of 2024.
Aggregate Subscriber Value was $1.2 billion in the first quarter of 2025, a 23% increase compared to the first quarter of 2024. Aggregate creation costs were $991 million in the first quarter of 2025, a 14% increase compared to the first quarter of 2024. Contracted net value creation was $164 million in the first quarter of 2025, an increase of 104% compared to the first quarter of 2024, and representing $0.72 per weighted average basic share outstanding in the period.
Cash generation was $56 million in the first quarter of 2025. This result represents the fourth consecutive quarter of positive cash generation.
Contracted Net Earning Assets were $2.6 billion, or $11.36 per share, which included $979 million in Total Cash, as of March 31, 2025.
Outlook
Aggregate Subscriber Value is expected to be in a range of $1.3 billion to $1.375 billion in the second quarter of 2025, representing 21% growth compared to the second quarter of 2024 at the midpoint.
Contracted net value creation is expected to be in a range of $125 million to $200 million in the second quarter of 2025, representing 80% growth compared to the second quarter of 2024 at the midpoint.
Cash generation is expected to be in a range of $50 million to $60 million in the second quarter of 2025.
For the full year 2025, Aggregate Subscriber Value is expected to be in a range of $5.7 billion to $6.0 billion, representing 14% growth compared to the full year 2024 at the midpoint.
Contracted net value creation is expected to be in a range of $650 million to $850 million for the full year 2025, representing 9% growth compared to the full year 2024 at the midpoint.
Cash generation is expected to be in a range of $200 million to $500 million for the full year 2025, unchanged from the company’s prior guidance.
First Quarter 2025 GAAP Results
Total revenue was $504.3 million in the first quarter of 2025, up $46.1 million, or 10%, from the first quarter of 2024. Customer agreements and incentives revenue was $402.9 million, an increase of $80.0 million, or 25%, compared to the first quarter of 2024. Solar energy systems and product sales revenue was $101.4 million, a decrease of $33.9 million, or 25%, compared to the first quarter of 2024. The increasing mix of subscribers results in less upfront revenue recognition, as revenue is recognized over the life of the customer agreement, which is typically 20 or 25 years.
Total cost of revenue was $405.4 million, a decrease of 5% year-over-year. Total operating expenses were $619.2 million, a decrease of 3% year-over-year.
Net income attributable to common stockholders was $50.0 million, or $0.22 per basic share and $0.20 per diluted share, in the first quarter of 2025.
Financing Activities
As of May 7, 2025, closed transactions and executed term sheets provide us with expected tax equity to fund over 375 megawatts of solar energy capacity installed for subscribers beyond what was deployed through March 31, 2025. Sunrun also has $819 million in unused commitments available in its non-recourse senior revolving warehouse loan at the end of Q1 to fund approximately 286 megawatts of projects for subscribers.
About Sunrun
Sunrun Inc. revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally generated, renewable energy. Today, Sunrun is the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun’s innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value.
