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Sunrun (RUN)

Participants
Patrick Jobin VP, IR
Lynn Jurich CEO
Bob Komin CFO
Ed Fenster Co-Founder and Executive Chairman
Michael Weinstein Credit Suisse
Julien Dumoulin-Smith Bank of America Merrill Lynch
Brian Lee Goldman Sachs
Philip Shen ROTH Capital Partners
Joseph Osha JMP Securities.
Colin Rusch Oppenheimer
Call transcript
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Operator

Good afternoon, ladies and gentlemen, and welcome to the Q1 2019 Sunrun Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Jobin. Patrick ahead. go Please

Patrick Jobin

and us for today. Angela call on for joining thank you, those you the Thank

forward-looking Before remarks on constitute we begin, will we please make this note conference that certain statements. call

risks in any and reflect as that SEC our we made currently to differ inclusive for the cause adversely. a from actual these actual note, us, company’s our of we these disclaim and made to statements. of Although other any may materially refer best update more results known differ believe forward-looking statements results Please based on judgment filings factors statements obligation to factors with discussion may them. and being also Please to projections are revise or the today

Sunrun’s Jurich, call turn Co-Founder Fenster, website will on Lynn are at and and Bob use available And Sunrun’s The today me Lynn. call Co-Founder slides now, the Sunrun’s the presentation Komin, Ed our over investors.sunrun.com. Executive to CFO; and Chairman. today are CEO; which On let

Lynn Jurich

Thanks Patrick.

are quarter megawatts against year-over-year $X.XX results you customer. per In or than along Sunrun's deployments, added XX,XXX generated XX XX% We of pleased of million of value XX present and first customers the created more a progress strategic priorities. representing our with improvement. with to net watt We quarter, first we share MPV per $X,XXX

guidance margin in generation of and cash investing while unit experience leadership our over and achieved our strong target. These long-term For product growth the results reiterating differentiation. customer we year, million raising can our are for while $XXX be

installations to and systems Brightbox XXXX. Brightbox installed grow expect now in have We X,XXX to battery over over XXX% continue

the streams than offers direct and cost eight in over ability time. also through it benefit to represents have rate It into and stored unfavorable with Brightbox a XX% additional at by more of California. services. this Sunrun business changes our power We in power revenue customers using high provides and turn backup launched states overall energy XX% service

stated customer. before, of believe services we undermine attempts can value incremental residential energy also per add us It to we've against an net value incumbents As protects the solar. XX% to by

inherent become expect for growing value offering of coming will pioneering control households customer rapid helping with the base battery standard advantages and they along over building batteries in we energy clean onsite. major a to can years. preferences Consumer through Brightbox their they future competitive the get system. advancements our in energy solar mean bring, our Sunrun a work portion technology energy the the Given decarbonize distributed country rapidly and is increased and that increasingly

of solar the effort have or England megawatt this roof. your towards on success demonstrated Last capacity panels Brightbox world are systems. XXX% a to assets rest the We grid designing and provide value clean for will winning to for help not in anticipated New future energy XX us the as our whether operators we bid ISO individual Americans model footprint X,XXX and from an energy as auction initial quarter our a of well you ongoing our This customers. utilities create a

superior fuel fossil The identified to power opportunities resources. Los decommissioning This with following City quarter we've traditional of plant. two resource infrastructure has additional replace a Angeles of the needs customer-cited

the replace We have capacity. this solution proposed to

doing the to a XX compared as almost estimate as solar that provide few Our plant that could analysis power batteries We Los equivalent so new virtual lost found as gas save capacity. could with homes replace XX,XXX and plant. Angeles an and million

emergency backup lines locally power preventing help and and for aging jobs, and batteries providing add solar to lower an can expensive when city need eliminates Building into to costs, grid, move more addition quality these power cleaner direct and outages transmission distribution energy businesses. air, communities energy reliable strengthen power In savings, for blackouts clean occur. the and the

also is represents this Angeles homes. XXX Despite solar, to significant much analysis of total the of megawatts Los only expansion how only is Our X.X% million residential grow. XX,XXX installed there home This on to customers. X.X room Sunrun of for highlights residential solar

the plants City by as Operator lines in capacity XXXXs, put has is peak place and warn from couldn't The reach The early slated highlighted over solar and upstate peak are. gigawatts Island Grid where to effective region, report New billion York resource that Another won't best local the storage fossil York be $X With in grid the New renewables York of electricity the Long of for rooftop battery upwards city. local, X the energy new in the clear. operator retirement without cost that fuel City New customers for role clean transmission a more into

Change, including many review and industry on on and report women Directors Code to to Turning now turn week. commitment published Bob signing I'll our & our as this reflects year means that based Sunrun's this vendors care to pledge companies adopted pay Board only our matters culture. solar who XXX and and & we as a performance that we to both a of now part foundation Examples on sustainability the a to and guidance to quarter same two Inclusion groups, company for representation along for many more Fortune leading gender maintaining joined our and shareholders, inclusion To CEO call the Komin, share demonstrate with efforts, our QX for and workplace, include by CEO over of driving an and our ethically of issues discuss and we CFO demonstrated Inclusion Diversity in doing a diversity our detail. our suppliers of Action this work leadership the social Conduct advance Supplier commitment Catalyst leading the building about as of of will and company. recently these Diversity enduring commitment. with the Champions of achievement positive accelerating We as in the advance a with business last to ESG commitment change on parity in strong

Bob Komin

per or per QX. or watt. quarter $X.XX Project Lynn. watt Thanks approximately in approximately per in was NPV value customer $X.XX Customer the was $X,XXX $XX,XXX first

a modest and value changes project very channel mix. to in geographic equity tax As reminder, sensitive is fund

slide fluctuate $X.XX In watt. now costs creation were customer project QX, to total cost value, per Creation creation approximately year-over-year. to eight. on $X.XX can Similar costs Turning watt $XX,XXX per creation per costs or improved quarter-to-quarter.

full We year declines deploy even make more expect battery as creation to business. for to investments systems show the cost direct Brightbox XXXX grow our we and modest

$X.XX Blended installation costs channel per stack costs Sunrun per improved Install channel of comparable systems includes and directly cost cost not our as were those by because built partner of watt, by watt. year-over-year which costs watt. installation projects per QX, deployed as $X.XX systems partners Sunrun-built reminder, business. a by to peers solar the is of $X.XX well As to our cost $X.XX were sales per marketing watt. for incurred for our In our

unit direct Our by cost over will also business be of total In costs by to mix sales time from QX due were of cost period installation per lower mix watt A costs QX, marketing the costs watt. it means higher watt a total but there XXXX. per per lower G&A marketing results slight $X.XX installations watt, cost reported higher per blended at a improvement deployed. are in calculated sales of megawatts dividing in business and and higher direct the

or of Finally, cash subtract gross we realized This systems watt. when our platform we lead businesses loan. with contribution achieved solar distribution the platform margin per cost, from gross quarter, $X.XX as calculate deployed In creation services. margin for sell and we XX first third-party megawatts. We we GAAP well generation includes services our racking the as a

recent third-party Our line mix and QX, loan in XX% cash in was with levels.

to high the teens be to mid in mix the for year. this expect We

debt while $X sheet. Turning last the also $XXX now cash, first million recourse $X increase cash total quarter balance million We $XX with in a reducing the our of from million to in generating quarter. our ended million by quarter

generation beyond outlook channel upfront instead plans, rates growth we common the and the in Also plans note along our undertake. income Net more define the amortized change capitalized in cash any cash cost ITC our generation the may more. the expect total best in the XXXX. $XXX our finance due cash to can to year. we our less years in view project cash which over of opportunities on current of activities was please as based strategic of over in but to fluctuate or change inactivities direct excludes million expense our that continue We our to generation generation represents XX slightly debt. with EPS have the this recourse to cash exceeds Quarterly increase remainder for the timing growth GAAP Safe to business shareholders quarter We Harbor in negative as our in business,

may direct rates Given continue. trend faster our growth in this business,

cash focus and NPV, business growing on key to generation, building the of our valuable a is base customers. Our managing of creation value metrics

on Moving grow full nine, on deployments XX%. expect XX% to guidance to we year between to XXXX continue slide and

$X.XX. XXX We we $X.XX in XXX or deployments of second up watt greater NPV, megawatts. expect from economics are per the target the prior in increasing unit range In our to to the to of quarter, be

Ed. turn Now, over me to it let

Ed Fenster

securitization than Bob. to capital to better I that assets of we also of for XXXX will remainder have discuss runway. operating the and net transaction, mid-year, Today and strategy earning QX By expect our more for on five Thanks a XXXX to assets plan years. I terms capital review been our continue or execute

our to our generate capability This assets time. assets them as to uses are our exceed gross value value over proceeds a to with or valuation continue book that consistent quality measure. earnings We extract and from highlights of the that expect framework

at Net financing prior of earning increased XX Cash to cash, Total cash debt, year $XXX to Sunrun increase describe million the net value less of period. recourse or the was counterparties. assets was million an $XXX shareholders XX% is to $XX after assets payments the $X.X million. slide to year-over-year. Moving end, flows way billion, from earning our quarter

through I'll Turning With turn the call tax finally provide QX our over and that, to commitments equity capital XXXX. runway Lynn. debt to back pipeline, our

Lynn Jurich

Ed. Thanks

for Let's please questions. open line the

Operator

Credit first [Operator the Weinstein Instructions] Michael with question Suisse. from comes line And of our

Michael Weinstein

Hi guys.

Lynn Jurich

Michael. Hi

Michael Weinstein

Hey.

its how at what the for viability any that in of Tesla XX%. a And point matter. in talk ever mean initially reduction also quoted to you I error, an New week talk bit it maybe turned realized be about that last SolarCity. reported in that we at the for XX% to going that do the but think the be general. I little prices just process. whether was that reduced a you Just Maybe from just strategy be option else out Times to only solar news threat future start-off, the out cutting anybody sales came can much of cost really about cost York was can or there is Tesla a off

Lynn Jurich

a Yes, gets thanks, Michael. Tesla certainly of lot attention.

we boat more in industry think because that's raises the great do always for as So, the this game everyone. we've stage for at the said, awareness really

first, attention. believe terms lowering back the the like in I of But we So, specific prices in they already tactic, November. announced

just can May in see announced and our with like about you six As share competitive given that wasn't gains, ago. our we position months

very tactic strategy And customized. from wherever might there's be possible customers and of as terms standardize automate, don't In a it. trying consultation more make a this small proprietary still of nothing good we pursue they there's about and well to benefit specific and of we wherever the certainly segment can the efforts majority but that We there believe customers necessarily -- a something certainly sense. around think be where those much

answer I our $X,XXX, just to can that, positive, lifetime money the that's just taking at underscoring our acquisition mean can questions, acceleration same just the just we derivative customers value mouth strategy. our we're cost with value in put on we're year share do to present We our in we what our so support this we it unit year. and we're flow last position of your like is margin the that cost. the think reiterate our side, and and and total And looking competitive acquisition think the with quarter that over customer growth targets cash is. increasing the see we're continue cost think of believe the I net you our do At So said money so on from to strategy. I of that our time, where right making where

Michael Weinstein

for value. earning asset, slide Got value future like It first of made question on from it cash XXXX of you. regarding the that's -- looks up in asset quarter up the net portion about renewal the the of down more slightly made flows. it in A XXXX -- contracted and XX than that went

Just to that's can result contracts that's maybe to if that. signed just talk wondering the a or the of put been about you on contracts debt higher being

Ed Fenster

it's Good afternoon. Ed. Hi, Sure.

pleased for QX it cadence obviously generation that Certainly, given to So, we financing in way business seasonally And of we cash you down. that expect up the the or manage adds in we're cash in and book being with the business. to such activities any fluctuations value. light that in is turned in, particularly the the of toughest quarter, can continue see generate we such to quarter a

So, read anything cash add book to the into quarter. continue I the wouldn't balance time. particular this over results in our value to and We'll

Michael Weinstein

refinancing kind debt same more the coming back to the lens, when or ABS any for On are you market of activity.

Ed Fenster

Sure.

to And to then doing ago. more financial transaction be a the as more the that that market to executed principally are in suggested work as markets will soon we this in anticipate obviously the be service assets forward I the there will that we we'll transaction, well. expect expect have that year. is on year mid-year balance be next So, working call, it place and I five is than our looking of that ABS and still transaction over years be and that

Michael Weinstein

Are spreads this to at improve point, continuing you seeing loan-to-value?

Ed Fenster

Yes.

a since the that this year and spot. So, in financial rate We're the But a obviously good are think in for certainly has predict markets Obviously, Spreads spot. The the rate, December feel these financial base treasury so we to I favorable. is news compressed the have a execution. good markets generally think fallen. we stabilized have markets day-to-day good and been optimistic days. that are overall, difficult the

Michael Weinstein

let Thanks it. else a right. All lot. somebody I'll a have at crack

Lynn Jurich

Michael. Thanks

Operator

comes Dumoulin the Julien ahead. question next of from of Merrill Bank our go with line Lynch. America And Please

Julien Dumoulin-Smith

afternoon everyone. Hey good

Lynn Jurich

Good afternoon.

Julien Dumoulin-Smith

Hey.

of about And and confidence given layered from Is it per to bump customers? just here. just NPV total XQ to slide about year originally? kinds to early already it the obviously in is slide some when number -- would back get What that And the in go that necessarily watt, this cost? expect deck, believe sense to things perhaps as And selling? What the want you in already, terms nine. you said Is up? seasonality these XXX something this confidence raised where -- on drives So of the I your The of isn't perhaps to something confidence. you're XXX. you

Lynn Jurich

Sure.

of think see the equation. confidence we I sides both on

sides. So, that, to look our if expectation, we why got we at more confident increase it's on both

So, and -- we throughout cost year to the on slight improvement improvement value expect on improvement slight the also the project side.

So, together. in more capabilities. confidence of it's compounded really a execution And factor just those the

channel in quarter. we expect in business, also think to and in area at QX, like of thresholds confidence less our for more so constantly or profitable hit have don't the are trimming the I we businesses do trim gives think particularly we us that we're looking that in rate growth some I doesn't the confidence that next

Julien Dumoulin-Smith

curious be the Massachusetts given thoughts then in that the of year that forward before look sort the market, traditional any focusing talk of the if think just than given then three-year our of the rather. it that you've the tandem Can opportunities market evolves rack there how I'd and as BPU monetization any to over highlight some to about well market basis kind Is S And the you're too. -- any forward And of northeast in turn more Jersey about ability other New extent. to and seeing to are questions -- of a you sell in done? on that on there as rather that the this anything I'll you Excellent. value you some any changes

Ed Fenster

Good Sure Julien, its Ed. afternoon.

so our the was more So, to of in question, that rack sort S had to did quarter, continue than to we your we do we obviously, prices evaluate rack first, S transaction significantly before. designed portfolios, actually a hedge

third liability transaction rack one installed that we those S some slightly we about transaction see you'll That a of the project more states. for we against of that in retired for financial up we half, statements revenue and the as in included for have a firmed So, that half than instance with assets party. had do in have contracts maybe rack the substituted S another debt to

be With end expect best generate, not, I would XXXX. also of the and rush the the those see if or so continue expect current New markets those program will successor interconnect that program, some the around is less cost to marketplace a little a in Jersey The program program, state QX we assuming so we which a markets likely decline the next be prior grow. to will of towards but the to estimates implement a that think stop-gap in exhaustion to program

Julien Dumoulin-Smith

Sorry, just was of to size rack clarify. transaction? the the S What

Ed Fenster

I the were in the but contracts. retire of $XX -- about previously it million -- proceeds the The the was believe transaction footnote, debt used and against most to of

Julien Dumoulin-Smith

Got it, all. you excellent. Thank

Lynn Jurich

Thanks Julien.

Operator

Caller, And line question Lee the with Brian of Goldman please Sachs. ahead. from next go comes your

Brian Lee

I have you the guys implications Hey the then for medium there around strategy for and make thanks flow? taking might Harbor this, but comments cash the year. for near questions. Any term did any Safe missed to updates

Ed Fenster

afternoon. Good Harbor. Sure call comments the make Ed the regarding didn't Brian, it's Safe We again. on any

we about That would opportunity Harbor RFPs. the ongoing to subject excited also said exactly that proprietary Safe provides and Harbor view as the extent Safe to what are what We us. and materials we

to the results continue But to there well in share the as So, will moment. chat and as future. the over course evaluate it we for that details we'll technological is think political about of RFPs we year, have at of to be us the premature more the developments, as

Brian Lee

in kind way. a a I'll but I then alluded different someone And ask maybe to of enough. the little call fair earlier this think bit Right, in

net so, flattish this be if and there it like and over slide the looks the slide been Does do correlated a has you there's few basis XX, curious consistent more growth the have past past gross sequentially more on past. or quarters different the financing I'd recall you're look assets lot then balances at has If how for have earning net or consistently. XX, over the a so a to if asset? on something again been year growing been structurally in correctly, I with -- year all pretty since

Ed Fenster

Sure.

again. Ed it's Brian, So,

call, the well. generated XX% of So, net $XX we as the year in cash increased and about earning assets the million on described year was in

a to value that it some So, over generate, of extent, the period and time. certain we defer take we it in we

the there's improvements refinanced, Security markets cash flows Given the be for capital in fact Social those increasingly in debts, financing now subordinated that less trade-off the upfront. of and some called more the

with been that is playing something So, last the earning year, margin net increase the in of the been think in the kind that's company. taken with on we together over but assets of the we results that increase have the strong cash

Brian Lee

All read given right. should environment, two trend those similar be And metrics just the a it moving we will year? that into through probably that

Ed Fenster

I of metrics these in trends, based continue individual or course of on project-financed expect moment, our certainly current the I fluctuations we year. give timing the the mean at have think certainly, over take, quarterly we'll will the But transactions.

Brian Lee

lot a guys. All right. Thanks

Lynn Jurich

Thanks Brian.

Operator

the Philip Shen And line comes line your next open. Capital with ROTH question Caller, Partners. your of is from

Philip Shen

for questions. Thanks the everyone. Hi

like And like it looks much increase for at a customers. equity return looking by could on as least for three to shareholders. rates as first are there all California. request larger It looks The much utilities is XX% on

by commensurately. in increase Let's our your might And can NPV have you opportunity that it suggests as growth can like say watt an to analysis well. or invest this per raise back-of-the-envelope $X.XX you pricing your comes you seems through,

additional altogether? focus through, prioritize, this how you focus So, to Or you come want to if else guys growth? were on value? would you on NPV? Would Would the something

Lynn Jurich

much the planned. for It's a And but outages potential -- question. also are great Thanks price the question. increase also that that as the I would the increase as

expecting PG&E that million noting So they're power as that and turn to out worth customers. many as for has it's itself come off said X

we power and connection a news we how think encouraged the with with customer off of visceral be around combination -- that awareness. these would do in for people I are days, have for what that multiple increases, we will of lot price their So, do

plays something an In of customer incremental out, certainly But when acquisition that think yield the price. opportunity I look be that the we costs. terms will how decisions is could there different will business at to a that we increase make what's

-- always we about while term, increase about we've able As absorb our about we and X% to expect improving project be that values by year just longer think that our ITC per that our that we strategy, said decline, we'll costs at X%-ish. how

kind story -- I of way one in issues And to the is has so in one the zone that challenges be customers just it. urgency there a why and dimension good think the been of may with But about of acquiring now. of our this the bigger to awareness, mean this do

be factor increases around the power's is turned to of wildfires so a And because the that do the the marketing it to going powerful now the off, reason price really benefit us. plus and to of awareness

Philip Shen

Lynn. Could Thanks about what Great. New gears some you services capability talked on for talked remarks expand about as in you grid there. talk of your of timing. you talk to perhaps in And L.A. in in well -- terms York. guys as guys to Shifting prepared specifically

you if about of don't I when, it L.A. timing guys think be opportunity Thanks. missed I realized. example, could talked Sorry for but

Lynn Jurich

great Yes, question.

We are on very services. excited about made energy progress being the

time actually use that replace can we're the way and technology offering plant a proposition backup in stands rate At direct pursuing market. to we share these plus the is a pursuing up virtual One other to to our billion utility all thinking itself leverage on we're and like in about customers because trying Brightboxes the or businesses utilities open these just set the going is many many to to in going many batteries And assets so those to with as and with CapEx contracts should structures possible places power. same traditional opportunities with power we're battery of value start way is time ways. the and two we where we're platform those annual as and sharing aren't it economy, $XX these our which our program so people customers

reality is up. their them take programs terms So, these they multi the years setting of that in of

at out. that's to -- and programs look once we up set us three an you as advantage And benefit. them for the ISO be years out, setting increasing today be But that very we example specification an the share If customers scalable. our he in and it yield the very, order given think competitive for will they're a have the market to

But expect, expect your we -- that's about shared programs so multiyear because And would after here, is haven't and a guidance per these are we on have potential -- value. margin hey, specific we come with out customer we around, here XX% that incremental up. set be per what it's to

Philip Shen

perspectives volume through lower question of the NPV watt a do the from watt? Or lower willing of expect channels? this expect to that the Okay, NPV know can do I'm do cost ultimately, compare to I how you California watt you the And NPV fair customer your to Under in you kind same that other enough. per new there in Are few somewhat potential per the to you builders? channel. acquisition asking a these from be home some different Shifting mandate. there. the mandate, given channel per And with accept gears expect

Lynn Jurich

Yes, question. great it's a

on to all market. we compromise margin -- we we that expect in that And to. materially don't at will We the believe wouldn't have

our current customers So, strategy and run we that generate so business the way -- the we us. incremental cash our again to is

so type sort in And be plus that you to position. in of level of to order need that be dollar-ish at

position market third-party a with service home more because increasingly owning well model prefer business their We the versus clear like for house the a as because the new builders the home. want bigger our model, mortgage efficient. that as slow capacity use it People in it's other it's business or features to competitive also that owned

it, and doesn't doesn't and to more the builder homebuyer owning It's have us for have by so pay efficient. And pay. to paying much the

market XX-plus position market we a that's to competitive able like that so offer definition, by have Just we being where and our product. share

Philip Shen

great. on. pass it much. very I'll Okay, Thanks

Lynn Jurich

you. Thank

Operator

And comes ahead. Osha go Securities. your line Joseph question with next from Please of JMP the

Joseph Osha

Who It's was last very that name. knew exciting. my

Lynn Jurich

you tell about it. Didn’t

Joseph Osha

not. Apparently

that saying couple back what's of basically to monetization cash Ed, you that your comment upfront you is referred was a kind before. to total that that time something thought So, it IRR position a your did you -- as out Are the happening saying the could retain you equity you made for penalty if it longer had cashing of of interesting. no market or the efficient. a now? ones. I been on in have long end, carries actually more upfront opposed result was to earlier you Are remember I it different now

Ed Fenster

obtaining options bit going products existing just but less which, other makes as customers. given it one, and margin retrofits the things that more easier financing become of offer call you're storage control asset a or more improvements control for retain market also penalty to does create upfront, gives a Joe, for if you simpler to I little on yes overall it think we're obtain the had saying just in

You owner the in equity like project have the you that have no quite longer an complexity wasn't or if you. something

So, as there more of become the in is markets sponsored first continue a simplicity benefit to there debt subordinated benefit terms is friendly. of the and flexibility sort a

Joseph Osha

So, it's debt cash really equity. that Is callable is more correct? it than about

Ed Fenster

regrets of And opportunities look in assets. are Correct. there the full no refinancing that sort debt full more of so control callable we Obviously, upside, retain context. a

Joseph Osha

Okay, a market capacity deal Philip was great. what little amplify ISO deal. a England on was To bit asking, yes, New this

for are is about provide be at and a call regulators, and and kind we look know island so it of off example, of going you to thinking utilities your I to community when forth, something what fairly this for turning conversations it still CAIs capacity California with locale, all As is in or deal. like a kind some or these for just straightforward of some pooling assets potential don't there potential to

Lynn Jurich

it upon taking are ourselves and there certainly we're No, to are those them. present opportunities

of I solutions to who to we so up very powers up situation to do want scrambling believe we at micro-grids out are end think but we figure compelling the we help have are trying offer set the to those. team And the and with

we're And on we're but so excited the tuned. pursuing we're Brightboxes think customers to certainly meantime, And ideas. not direct announcing sell in prospect. anything those about working that passage stay the which to We're I yet quite

Joseph Osha

clear, than And already I'm this have going ISO more be we that just CA brewing. so is before to anyone

to interface going it is to with? be So, have ISO? CA do you Or who

Lynn Jurich

be mean dynamic I -- in to California. I going think It's really it's

So, be be it seeing will the CCA you will utility directly, will ISO, would be increasing. it

is there of think I of utility a either I or though. an of presented the interesting agreements mean sort well. structure to have type as the we're wholesale opportunity bilateral CCA pursuing sell or ability into that influx with lot

the which energy model with business because think I So, it's where our we different there local into. sell grid will services be

it's still So, much I very in TBD. think California,

Joseph Osha

kind the wondering given I'm market any PG&E and if that that's how been signals it. the mandated as -- think comment how Got and it they're Thanks. has not you're status. feel metering whether Sunrun's one last to But on I And not the kind assets at they deal. to relationships early position then net you've one. of makes sense been contracts, utility go and to Ed ABS sense from Back about regulatory at your Obviously, are about there's gotten risk. any of to going

Ed Fenster

Maine diminishing an finance more track or mean not I net is and strong California appetite investor ever, are just example, utility that an as around. becoming metering we're positive nationally as metering. record stronger. Connecticut to in example way diminished is considering other states recent had if owned net as The are the with returning metering net assets to

falling consumers to and earlier the very we So, of the and against think supportive environment. on-site current consumer been to the through And increasing diminish has not will of comment, other utility that any of could that regulatory react diminished with interest any and environment the in aware energy relationship. rates I having Lynn's or California backdrop those negatively -- they're is increasing, very reliability widget are options PG&E bankruptcy

Joseph Osha

much. very you Thank agree. I Okay,

Operator

final line Colin the And ahead. question Please comes with your Rusch of go from Oppenheimer.

Colin Rusch

in. Thanks me for fitting

you've in the optimizing you done to As markets. out with structures owners there? upfront seen you asset at new innovative other What We've some couple of structures see capital, are your some opportunities a there. public of quite know I look starting

Ed Fenster

Sure.

rooftop is big think picture, we the have to working. and be our market is certainly encouraging basis, the to I and is I to And flexibility what assets, beyond at cheaper maintaining that interest me of on performance the and important currently so just ownership it's that. easier evaluate we over and encouraged available the the which the options expand will simply think, more the I these as we're company, the possibilities time, a case-by-case control us in is and help customers expands solar we we be we're overall future all think and although to plan in going doing I by Again, for us, as that may continue to multiple residential So, solar think to assets us. offerings grows, history deeper

Colin Rusch

Okay. opportunity, And be an that solar services acute or to do to or near of data term going rates customer getting relayed there's for services? take certainly -- sort success solar back the sell California. rates opportunities you you customers retrofits but or existing fulfilling and then is What additional on customers trying additional have over to it existing solar some going sounds batteries

Lynn Jurich

our focused asking it. We -- that it's we more putting is that Brightbox clarify. on It's for It we launched builds Thanks -- a judgment offered so there good much it's thing our question. currently is have as to efforts our product. that not efficient been new

So, currently. we the share have of we operator don't so have to currently data an

Ed Fenster

evolve I we XX-plus maybe do And can time. certainly, year expect clarify over comment, seven products to improve the and technology today, to my we're putting place. we if in that to are capital And assets financing

not so plan to for as that we want that, near flexibility maintain but term And the long obviously, medium to we as over term just well. the

Colin Rusch

so Thanks much guys. Okay.

Lynn Jurich

Colin. Thanks

Lynn Jurich

great a evening. have bye. and everyone Bye, you thank and Okay

Operator

and concludes participation day. gentlemen, this today's ladies for wonderful Thank And you and conference. have a your

now You may disconnect.