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Sunrun (RUN)

Participants
Lynn Jurich Co-Founder, Chief Executive Officer
Bob Komin Chief Financial Officer
Ed Fenster Co-Founder, Executive Chairman
Patrick Jobin Vice President, Finance & Investor Relations
Moses Sutton Barclays
Philip Shen ROTH Capital Partners
Rebecca Yuan Goldman Sachs
Michael Weinstein Credit Suisse
Julien Dumoulin-Smith Bank of America
Joe Osha JMP Securities
Colin Rusch Oppenheimer
Call transcript
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Operator

Good afternoon ladies and gentlemen and welcome to the Sunrun Second Quarter Financial 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, Patrick Jobin.

sir. begin may You

Patrick Jobin

and us to today. operator, 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

reflect our we currently to adversely. actual us, these and Although may materially best known differ believe results based on judgment factors statements

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

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

the turn to me let now, call over And Lynn.

Lynn Jurich

Patrick. Thanks

our progress We quarter results are and Sunrun’s second pleased strategic priorities. to against share

a MW we quarter value added the deployments, of net NPV of $XX and In improvement. $X.XX representing created present per per XX,XXX XXX We $X,XXX customer. million watt generated of XX% or customers year-over-year

a group, $XX in its a generated increase. financings. capital have low achieved offers weeks million raise yet costs not surprised proposition few were just last We ago. the and and in trade record CapEx the EEI, We since households our experience, utility superior call to energy Sunrun value our cash continues again see to forecast

limited and time, the electricity energy the years consumers and XX% It be tops is now rates. passed doubled weather experiencing exacerbated increased forced increase highs. spending, at will same depreciation and are their projection estimates. growth prior of power consumption EEI from $XXX their shut-offs. next higher in in CapEx significant customers service, extreme the With in by unreliable utility form by this for At to billion two all-time expense, many likely

are storage, of engage in clean driving for the their meaningfully battery solar usage pain personal energy and combined attraction with time. energy consumers points, These to first the

be with unique point show to and California system. resilient, create I proving growth relationships market access will is want obtain significant customer assets to more distributed much help Today ahead Solar lies how a clean a how to highlight to the customers.

our in we the “early phase just the First, phase, now area the are of modeling earlier moving the that is size the “early that shows California into curve exiting an adopter” and of majority” twice segments.

category for home the construction mandate batteries California the new home the additive years, during next and Second, the be awareness growth increased few new will will become it bring to both from mainstream. as and homes solar

in in engaged California the contracted are gaining share. of homebuilders with XX We top half are and or conversations

fossil Finally, storage. solar comprised retire are Angeles, and many battery communities and Oakland power plants Glendale Californian and to fuel virtual of are plants examples. with recent them replace racing Los

fossil with Sunrun energy targeted contract In and acquisition ISO-New capabilities, home and battery power in in growing solar replace systems is England density award our positioned to services retiring contract advantages. plant win low-income with to helped scale fuel housing. we customer added our July, another This Brightbox a Oakland. and landmark on offering, with

valuable Furthermore, The solar who harmful fuel starting communities a and that planning disadvantaged Choice the it impact to resource in contract meaningful, it experience are the cost-effective of will and realize California particularly batteries is tool. often pollution home are because fossil Community most. help Aggregators shows that

in fossil slated equivalent of to could plant This XX is of virtual fuel For California the be in or nuclear context, the potential four power times XXXX. Canyon plants power the plant the X retire Diablo size GW alone. of opportunity

follow will We this other trend. states expect

install times, causing huge potential of is and short Brightbox, we supply from even and immature continue solar, with to Because invest an though in slower chain, it obstructions. battery of the the paired term permitting storage interconnection headwinds

is to anticipated than demand have to continue more climate expect systems now X,XXX with installed battery cost unleash Brightbox events. reductions and ready We and severe

We service now states Rico. nine Texas, in the Vermont, is Brightbox Jersey and Puerto recently and available and to expanded New

by growth We are the to are consumer-centered in path grid decarbonizing. encouraged services by programs that utilities forward-thinking offered key a recognize solutions

more Long in are grid XX% Utilities batteries Island services capacity in represents California. over Vermont, streams. overall and now participate and and that of operators direct joining grid business programs revenue other in to Brightbox enable than Massachusetts and XX% offering our markets

position order potential and in are to continues Customer long-term market our improve. demand Our book strong.

business faster We orders direct for and that. are much continues XX% QX, our more grow growth than in forecasting to annual than

labor our in in However, challenging market resulting backlogs. more business we hiring the tight direct growing is than making expected, timely

side, positive cost on improvements. the in resulted focus our on So efficiency

can You mix. Built year-over-year Sunrun costs that increases, improved and battery from both despite wage increased tariffs QX, see X% and

customer However, realize to we our are behind in plan demand required staffing QX.

cycle We crew believe are additional but times longer also and the Brightbox, prioritizing requires which decision, right training. creates is long-term we

between XXX XXX in to QX. deploy We and expect mw

to We QX reduce the capacity orders. and expected increase are working realize in backlog growth to in

our more the review and to to QX detail. performance CFO, I’ll discuss Bob, turn over now call to guidance in

Bob Komin

per $X.XX second NPV customer was approximately approximately $X.XX QX. from per $X,XXX QX. per the customer Lynn. of improvement quarter in or a ago from watt, an watt or year was and $XX,XXX Project Thanks $X.XX $X.XX in per up value

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

eight. or on an per were $X.XX $XX,XXX now Turning watt, or slide to per costs from last $X.XX approximately In of customer creation total quarter. improvement X%, QX creation costs

creation this expect levels continue second will We to of improve QX from costs in the year. half

fluctuate value, quarter-to-quarter. creation project As costs can with

As of as of channel channel comparable per includes which $X.XX our per Systems, Sunrun Blended an business. those watt, was our is partner a $X.XX solar improvement to the from costs last directly installation watt, incurred Built of cost because by deployed installation costs cost well not our reminder, as for peers projects quarter. tax our partners,

and X%, watt. both and sequentially marketing $X.XX from were to up $X.XX systems $X.XX QX. costs watt per by $X.XX per sales or costs QX, for built improved Install our by year-over-year Sunrun, In

total are unit by calculated and Our megawatts sales the total costs marketing in deployed. period costs dividing by

costs higher the also means in due sales of results per be business and blended higher it marketing direct of lower lower installation direct to reported time installations business over cost per but mix at the higher watt there will mix watt, per costs A watt.

In QX, from costs watt, an improvement G&A QX. were $X.XX of per $X.XX

when costs, our solar well businesses, Finally, or the subtract gross cash generation systems contribution GAAP includes services. as we we lead This from sell our calculate as third-party racking creation platform and we loan. realized distribution, for a with margin

XXX per the In margin gross $X.XX in second MW. QX. services watt platform was Our we quarter deployed

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

to the mix for this expect high We the the year. continue in teens rest of

total We now Turning cash, balance with our sheet. last a to the $XX from $XXX increase million million second in quarter. quarter ended

but We of to generation to activities, project of finance remainder can best due on the expect represents over fluctuate the view cash generation the of continue $XXX for based our timing cash our in million XXXX. this year. Quarterly plans

beyond also ITC the cash in our safe generation opportunities plans, total note harboring change define strategic recourse cash does excludes change generation debt. in We the less outlook not cash current any as please include and that our activities. Also our

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

deployment business sales growth are capacity. our As outpaces overall our rate, expenses more front direct and loaded for

pressure we a The labor generation. front-loaded expenses, market, and more this, cash expect $X.XX or and Despite on million cash to puts result. and more still exceed last generate in for NPV tight year’s dynamics total XXXX of $XXX to NPV

for the NPV target to the of our range expect year. be in $X.XX previous also We

As XXX mentioned earlier, in expect the we XXX deployments to MWs. third in be to of quarter range a

let it Now over to me Ed. turn

Edward Fenster

Thanks also earning our Bob. and strategy touch finance on net XXXX. our plan assets capital activities for along runway. will Today capital remainder discuss recent the of I I to project with

interest advance terms. the are capital long-term in on and last and Reductions market, interest entire capital residential ABS in subordinated record our bank growing Since across solar call, in the rates we stack. all transactions and to rates debt market, costs executed causing market, assets improve

longer or investor. advance a assets priced notes so we In X% completed included a been five equity tax have May of at operating years, XX% an The with securitization they more for yield no rate. a that were

tranche higher for senior similarly securitization a is highest rate any solar advance percentage the The prior advance rate and lease the XX in represents tranche points of nearly rated XX% Sunrun’s in to-date. and than transaction PPA

yield over average earning assets, solar and The any X.XX%, Combined yield lease on lowest the debt the debt for was contracted cost total transaction, transaction to proceeds portfolio’s date. is with which brought weighted the X% gross XXX% of the of or PPA the subordinated of the to

This all data fees. presents using to calculate transaction of X% rate X.XX% support a point in another asset value. discount including

we equity, sorts these as the able upside than portfolio structure solely Since structured retain are rather we trends, now non-recourse to able are overtime. of on debt, facilities to these

this by we’ve in materially received we base rise. net proceeds swap we Although when don’t and hedged a discussed harmed before, refinancing, we fall, portfolio, refinancing interest proceeds significant likewise when were materially breakage benefit materially aren’t rates when as they gross costs, reduced

incremental new into in environment. to begin this built will as proceeds lower these service see newly from We costs place capital we rate lower systems interest

reduced XXX.X July, to points. million LIBOR XXX over time basis bank re-priced debt. We In spread stepping from the to plus up of we points $XXX basis XXX,

re-priced, transaction-related XX% refinanced increased than also lower this into rate from facility We advance to rather We expediency XX%. the for costs.

on either the conditions. ABS another bank We market during debt expect depending execute in or to QX, transaction market

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

finally tax debt project XXXX. into of commitments commitments XXXX Turning our extend equity provide pipeline, runway through the while second to quarter our our

back Lynn. I’ll call that, over turn with the And to

Lynn Jurich

Thank up it for now open you, and questions. we’ll

Operator

from first Sutton question of Moses [Operator Instructions] the Barclays. line comes from Our

open. is Your line

Moses Sutton

focus cost my for events, reinvigorated Thanks taking headwinds despite creation the on quarter. bit been of In this recent there’s a maybe a light question. of

base and X% future on a Brightbox, over any years? How how mix. go, maybe this its you commentary averaged time on could in further review XXXX. affected much Can You’ve by decline your might views since this creation be case cost broader

Lynn Jurich

There’s for improve Yea, opportunity lot costs. we’re there, acquisition question. a of ways pursuing multiple to so customer the thanks

saw utilization. you and a side, QX on installation what lot So efficiency better was the

Now you achieve, that that saw at we be have QX of hard improvement but quarter-over-quarter we potential at there. know the you pushed know risk significant install the could may that, you too

more You are and hardware release when with going to see there. competition pricing improvement the in tariffs

the also process, times cycle whole of system. This permitting from streamlining with and help. whole for which which finally expecting and to get install. the are massively brand We I interconnection customers you lot then improvements awareness our the know and customer to faster will think that And a for lower penetration will automating see from is create cost trying will we

of across supporting the caught. in the opportunities one I of what’s pursuing paths the there’s would values and short term So lot are the board a of all we’re customer is say in those. happening that each creation the

So values, you lower you look where are lower. also creation are there know, the markets so at costs customer if

economies the with So of worth costs customers $XX,XXX on us, one each and XXX value these almost that’s upcoming that. here our so with to there’s an attractive with customers – support our

to is and in we and year there pressure not discussed ones. of you we with said but know are sort costs as market throughout modest this, You expect of we unprecedented creation know so also have would labor know there big what improvement you you going the there’s while, a see

significant board. the So we’re and the slight to are short reduce and term, to project improvement, in those strong very values is, But MPV going on that the costs in tighten see I expect I you short wouldn’t a the bullish are we summarize run. the would the and opportunity but way across really know improvement

Moses Sutton

the of the on Yeah, Anything don’t seem helpful. just more lease relates, provide prior metrics size but there, kilowatts. there know the quarters if one also in I that’s you thought to are comments can range are I Maybe you X.X about system very average were $X.XX that was value usually of calculation. any be – $X.XX this of, in on renewal your watt, per based they mix. there, the different

Lynn Jurich

and system it, are size. some that take markets have growing I’ll system to are Got tend the we There newer the larger of do size.

use we a that be Texas, a air would are conditioning houses in, than people market know one that in you is of California. So bigger have where which based lot and

size think improved. going I mix – So the the penetrate you like the starts as in as to see that to markets you’re

more, the you better I always more we’re at yield know more think project. attractive is larger profitable getting and size also, systems finding customer generally

to the achieve So refining are well. model our that as we customers also,

know know there quarter-to-quarter. would just the variations you On I is say renewal, you

book have XX We you also contract value some year were exclusively XX in whereas know places, introduced years.

you So that in those of the would know half piece renewal in instances. cut that

Moses Sutton

some Got you but from the you me, of percent much or sure retained clean wondering how as revenue it revenue and but either see obfuscated you revenue SREC’s? revenue bit category number a and well as last not just and/or this, values broader driven provide details, it’s one know as of by incentive deferred that? your if total, a I’m if can provide can We nominally of ongoing the

Lynn Jurich

is to definition the how SREC, So right. attributed yeah, are asking in ANG, of much any you

contract sure this in actually the what I’m So number. that we’ve I’m But reflected is going just to – is make defer here contracted to it’s correctly. saying to Ed

we be incremental for that a So SREC, anything un-contracted data. would that contract don’t to have

Moses Sutton

Thank it. Got you.

Operator

line Our comes next ROTH from Partners. Shen of the question Capital with Philip

open. Your line is

Your line open. is

Patrick Jobin

We can move Phil. to come Operator. can to back next We the question,

Operator

The sir. comes next Sure question from…

Philip Shen

me guys, can you okay? Sorry hear

Patrick Jobin

Yeah, we Phil. now hear you can

Philip Shen

Okay great, about okay that. sorry

guide. megawatts is XX% you and Historically as between many on do the longer will So How do you is think forth. a XX% the result your up the or times you QX. QX sequentially cycle left as on you left is of know table to guide first over question have result – you a so QX think

You just know quarter-to-quarter. today think is your I guidance X%

what But have it issues. had deal been market the it’s guessing didn’t those you and forth. have I’m times to tight so could the labor So with cycle

Lynn Jurich

I are way customer half we the the back of the it for would guiding describe is we visibility have overall the Yeah, into year that to. deployments

a then organic then that like the and and look the backlog the QX a Its it’s the growth does accumulated pretty ramp two on components. overall in really it but QX rate number. QX So just steep based reducing we’ve hit QX actual to guidance,

I how would components So in that’s describe backlog. two the the

Philip Shen

able – QX risks times you Okay, right, you implied, imply would that and to tightness is and expect it to to labor over growth reduce megawatt you QX, steep know and cycle are and a rate XXX that’s Do QX. pretty potentially the enough know it QX – the for guide call you that? XXX what you’re the for quarter to XX% quarter be guide realize around implied

Lynn Jurich

importantly the realize again know on demand the we And do. We finding third and so visibility there, we, into you we and to capacity the know to orders is most have need execute that. you hiring party and/or

be think I way we air rather that it with QX cost having backlog, from ideally such higher a large really wouldn’t than under-utilization. we’d exiting but

the little one a were there. side you’re but if air going orders are too we know on tight So to maybe you know you that,

execute can enhancement. we the believe we So to capacity

Philip Shen

Lynn. ABS in either thanks QX. that Okay, you in then think bank financing mentioned in And you expect had or Ed your remarks I

to if the not kind pre-flip you to be ABS. do for ABS, assets, If expect you asset QX base what do of it expect Thanks. do were you an or

Ed Fenster

QX the anticipated placed in include systems. Yes, transaction Phil. recently Hi would service

be that transaction. tax would there equity So in

Patrick Jobin

Great, thanks Phil.

next operator think we question. I can the take

Operator

question line comes of Brian from next the Lee Goldman Our Sachs. from

is Your line open.

Rebecca Yuan

guys, on for Thanks Rebecca taking its Hi in for our here Brian. questions.

for can until both on don’t details then position are odds near to strategy harbor we end. So thoughts get an outcomes ITC the of on you an some able you and your safe extension if extension and provide maybe year

Ed Fenster

question. Hi, is great this Ed,

We’ve would close already So rules in first, access requested amounts on to next which the carrying on this the safe inventory by track the and equipment XX% extend in our credit of to are the facility planning year, inventory accumulating avail small of for to QX. we are IRS credit. begun excess ourselves into obviously harbor

structure there discuss proprietary, a know call. know doing be but are not some it, you profit ITC is subsequent our We an bases extension, that best you we’d risk our covered terms in to we on view to of that such whether and of have happy or and of kind we

if occur or is best potentially occurs question odds connection you extension, that ITC still appropriations to an probably the bills end year, I to your about the of our tax expender in likely know XX% think the about thinking and To the bill. that’s of close very is our with

measure the law the to which end it year. need There larger recently a in the just think considered – now would were be it extend introduced connection if will is enacted with and between other we that act to be in Congress of bills by

Lynn Jurich

are we just course of the count planning would business I that. add, And to certainly not on

Rebecca Yuan

where heavier quarter channel recently we just the like and the blended should and thanks, going during watt. there it’s on been Okay the megawatts how the in from of think mix then about per cost it mix and reduction is a trending so partners looks then forward

Lynn Jurich

are is cash perhaps you higher mix referring to So sale. of a what

cash know or So you don’t are the you – know looking because which we XX% I out. break channel versus think you sales direct the increase underlying from to XX%

direct actually installation and over reduce Our you so than our is does of business mention faster the a that as costs. what to growing channel you is time funded period

I comp $X.XX was down because is in year’s fact in there see – the that was know that cost But comp, was fluctuations you and that quarter-to-quarter. was look from you’ll last was an sort look down outlet think really quarter QX first at if you it’s an just value and it’s QX. more the not project versus you normalized, down and the of it unusual if

flow that business will is line in come So we growing expect that with would down that. expect direct costs we faster; in

Rebecca Yuan

thanks. Okay

Operator

comes next Weinstein Credit Michael from line the from of Our question Suisse.

Your line open. is

Michael Weinstein

$X.XX with landing about where if employments especially in you modernization. watt comfortable you we see level, a service know per was are thinking a grid are as going target, battery that’s forward. guys I wondering on Hey, high more as you MPV

Lynn Jurich

saying the Are or you year? generally more for

Michael Weinstein

More generally.

Lynn Jurich

Let I’ll answer me, both.

So that lot there do the earlier. we there’s business area recognize fast for In in a with know we pressure which said year the know number on ending our because you of you in it, Bob are that direct pleased expenses is. puts as some growth

time our believe we in opportunity Over there improve is an to even core business. is which that,

So the prices It opportunities help, with ride commentary do I’d do utility does about my in to also that we talked know that. certainly really continue increases. to you CapEx as see

charge is of So there higher you to and reduction know a ability our well. tailwinds tailwinds prices lot there’s on as cost

getting we in So benefit both directions. are

grid the on-grid revenue, the utilities are we with by of potential the some really on with terms in services the encouraged and California. In movement serves meetings of

that continues build. take opportunity So be little we’re an to but to bullish a very it’s about, to while going

grid that plus in we MPV a know estimate services of that add in we discussion. active points in So that support can customer you XXXX lot pipeline proof and per our and have really

a However, that’s grid if you be to that contract, our going the look are services percentage with slowly to at over time. you of build customers going know

you be customers So of could our to years. in yes. couple going it But the be percentage of not a XX% it’s the next foreseeable over over future, meaningful know –

Michael Weinstein

a that mandate Gotcha. showing the bit on you could that and rooftop with Where to to labor really that also starts are installation you little next acquisition. and year what And in, kick the as happens also really up California starts expand. or market comment customer and there sales tightness; is an seeing

Lynn Jurich

rooftop on question the That’s good a expansion.

on acute. know acutely most your first you it’s California. you it were question markets, the it, side across in markets We downstream terms like think it insulation sing where on key pretty in seeing the and know some I of seeing think you I board,

people so in in store, sale know it depot in chances because staffing you our we across construction developing I like – the of I the the a is I difference board So and to people board. on work brand would in and are say home terms people, that our that really company side, towards. think we talent across a want

typically new lot a and that is market. In know you terms serve outsourced that there’s I of construction, mean of the that contractors home

know you is that mix. think I So [inaudible] market fairly

home know know you cyclical. as quite building You is

that ramp down amount. influences they So up I it a and ramp pretty can so think in and easily don’t I huge think

Michael Weinstein

this mean yet? model not is I might you Great! know that that really higher does of – part labor the think this at point equation costs dealer or the attractive be do more

Lynn Jurich

Sunrun. would No, there different. would I as though dealer it through be that to mean will just flow no flow to a

of to I place developing you other know if like quality retention players and and are talent know a anything you ourselves. again sort and efforts some larger to the going high a brand think of work benefit

could see as competitive So to dealers. dynamic us, the I favoring a as that compared

Michael Weinstein

thank you. Okay,

Operator

Our line Dumoulin-Smith Bank comes America. the from from Julien of question of next

Your line is open.

Julien Dumoulin-Smith

good rather, are you Good morning afternoon losing I’m mind. or my How guys?

Ed Fenster

Good Good. afternoon.

Julien Dumoulin-Smith

of the deenergization to through demand you question, that quick given going I you today, specifically are some customer of on already PG&E be there actually quarter be California, if right, seeing data ground. meaningful in the uptick? a the inflection? late, public on curious What Lynn. you is proactive I’d very and meaningful quoted alluded So but you’re points backlog, other large seeing latest in out customer Excellent! the even a of there you what the very seem terms can I It suppose discuss there the seems to

Lynn Jurich

I that Yeah are but will comp. mostly huge, the be those they on think tailwinds

those going get flow prices to, one. Electricity and to I to the three through seen that as we going pain. have cost going are them mean increase we consumer tailwinds are is they So haven’t from maybe tailwinds, that’s so are like two to to really going

people feel have been are yet. felt season their to and set-up, that going of while a just really haven’t fire pain people group really the really pretty so on You small so two but is the getting suffered far of I don’t power It’s they people comp, know think yet.

three, at make is a to individual of for chip decisions the then good and just dangers just whole appreciation homes. change climate new and in a own there their from willingness And

has a and you tailwinds those ton give you are know of enormous us So know confidence California runaway. that

on meaningful and just would couple to outages. in uptick we you early going this, the you are However, entering through are in a so fire the season, days people demand a of way say see we’re not I until been have know that

Julien Dumoulin-Smith

huge where have to you experienced mean talked maybe your you this. as I storage storage uptick something geographies back isolated sales and these would at numbers of see clarify some you even the even in uptick XQ you is that perceivable the look this Have cell. seeing them mean solar this maybe materialized? on comp. just But a waiting you that about seen have them real Are outs. an a for in that because amp really quickly, is I storage also presumably component, be And that’s to within rather than just the

Lynn Jurich

Right. Yeah, independent that our QX; volume level. to year-over-year I the I grow expected order outages still we this would to at way mean I grow would in XX% that, so of answer expect

materially of the into issue number these us it’s fast will, not, next I materially even not do it’s quarter quarters. things in but quarter believe moving over know It’s about couple or quarter. it’s this not next single growth that’s So rates. the current you the changing not or it influencing our

Julien Dumoulin-Smith

it! of wait good and seems it thing. but tailwind a of like a kind see, Got More

Lynn Jurich

say a decision it’s would to before customers, know the people, and batter. live-it they I roof a need wouldn’t and wait put stronger go I see. panels on to just you say make than

Julien Dumoulin-Smith

existing in customers customer discuss real the venue? similar more and Can expanding enhanced just a penetration can leverage other to Oakland the to quickly. you your one more like I opportunity constructs CCA contract acquisition If around

Lynn Jurich

plus going entering for those this as the to monitor barrier PPT going is our into plus is because scale the customers part solar able advantage being Absolutely! of battery, additional power. what be for that another, energy, able storage, and as to enter, power us we’re back benefits But I all programs, value. plants to be are virtual is do our also which we’re offer of cleaner know up to you cheaper think

enhances value customer proposition. just it So the

other it and a urgency is, to The it marketing message does thing you the consumer. gives

endorsed power as really if now a has customer the this to on differentiated know of replace we customer plant, costs Los help acquisition, our gap Sunrun in the So It way. come acquisition city product. that on us Angeles pretty helps you

the So we for opportunity. of these excited are very promise

Julien Dumoulin-Smith

you very Well, great. Alright, thank much.

Lynn Jurich

you multifamily contract in there Thank you. develop would add One thing will which is see to and and we of the XX-Q able that to expanded be capabilities is won. part low that we’ve other Oakland I income our buildings, slower also our

more we home, also solution power our plus that comprehensive put family plant solar can for multifamily. So virtual plus these we a know are single you well bring working on community, to income

can we solar more provide access. So really

So that efforts excited about those we are as well. progress on

Julien Dumoulin-Smith

Great!

Lynn Jurich

Julien. Thanks

Operator

Instructions] [Operator Securities. from JMP Joe of question Next the Osha line from comes

Your line open. is

Joe Osha

Hi everybody.

Lynn Jurich

Hi Joe.

Ed Fenster

Joe. Hi

Joe Osha

there you you will at be iwind of Julien’s the is following on or still a have out some Kind to of deenergized protection of sort arrangement there moment, backup areas that possible look know in – ISO of available thing on the [ph] a an if place? going line the are at looked will Hi. capacity anyone community in you you power a questioning entire let has being if type basis. communities or only of are residents-by-residents Is the of that possibility for these when at of deenergized, that risk you when line a you

Lynn Jurich

working Yeah, I are opportunity. absolutely think those we

reasons the days one of some complex we of one Now in that of the you quite as CPAs things with so. they – IOUs a have the that having the regulatory don’t success know early is the and framework the good munis

this in really there are to tackling for North mechanisms, working where So the market blocking market I nicely and is than think through get the East. the and mechanisms market the some

East, on California, who is this. the so So is anybody in the North competitive crushing California really North is East

up East; that’s utilities the model. is you and we market. capacity There’s market, ISO that’s know capacity programs where multiple in happening going be plug [ph] you already batteries services so their – in their are North allowing So a wholesale batteries into to know they are ancillary our you know simple the to can that setting

market In California because the same will this add the through and thing working totally make at and where know early we munis regularity want and really – of to the time this the early structures are to try financial Ed CCAs kind the provide to you are sense. the wins this the then something. and attention to structures probably

Ed Fenster

know Okay, are two there so types be I say could customers you by who a of would blackout. impacted

in You long is risk of risky line that distribution transmission community can wires actual have or fires a the whose or a end in at spot. that community at you are can is have a a

line So the describing where opportunity grid is the what the are the that community is you which neighborhood. than lines in transmission the for necessary that’s where best distribution you Micro are rather at ion risk

of is So ours the and will largely companies coordination in that. definitely some know but also like you a realize interest the to utilities, between there it and lot regulators take that

know encouraging them PG&E portable to know example sent email its You to you generators. buy an for an customers

think I but manifest benefits be little to the realize work that you do a know in sort going bit order to we of filler to is there bring, and of together storage the and can of on see So that system as meantime basis. you longer take safety term a a and action the own to anyone the you ensure security standalone know know their mid can immediately as Certainly to opportunity. in benefits

Joe Osha

guys. will still there grid BrightBox are NTV think a kind at there just at looking when positive then BrightBox with some contract for is assumption and of this you how initial is from kind there about an as from additional you you a follow proposition the point, implicit that of that, pricing or on Okay, monetization services be

Lynn Jurich

latter. More the

So day really know really the consistently generating focused so more latter. we’ve been cash, one you on

be, a be we’ve those these you that. on call more again. taken, been there I revenues little but by market, know on conservative think Its you at how going judgment likely are to a could think we’ve market

Joe Osha

one, so here’s then one the question kooky One and other one. kooky

that the munies Would growth. CCAs so the going and expertise people’s mean your and other else’s ever and green there that are somebody be doing and charge position you IOUs what in to I had of and developing monetized. can’t silly? sleeve out Given they your capacity. or aggregating you batteries for potentially Would a not you’ve start capacity these ever that you is stand just companies and putting

Ed Fenster

Hi is Joe, this Ed.

operationalizing instances know you opportunity developers to list know is that, activate C&I where certain you actually that time, in us but you for quite I we heading now the opportunity know have and one we developers. people yet. in partnered particularly obviously think called are down, several And and but absolutely have So see that, a on know everything an ourselves, right growing propose haven’t other as with do priority over we you we that fact

Joe Osha

or there. you Okay, me XXX% on and comment the does than bit a contract, one subordinate that what underpinning the for one the renewal little more understand debt of That on then made are the you. subordinated mean deal lenders to Ed lending it being help that ABS was with you last

Ed Fenster

Sure.

that the maybe repay sorry, know the I obviously know decade as assumption don’t instrument but portion, lenders an assumptions out value So my over note instruments, face exact as period. that contracted the a as our the rate you see base out value is it debt see, there to multi necessary just concerned know value renewal of the me. know But it so and is I their to rates. you than refinance and is fundamentally of interest to we’re always were to a far you know XXX% if think But are uncertain you what revenues you know being amortize you case, renewal so more as provided potentially matters – fully just interest certain is we

Joe Osha

all Okay, day, go I’ll step thanks. I very aside. Thank could you on much. but

Lynn Jurich

Thanks Joe.

Operator

line Oppenheimer. Our last Rusch question the of comes Colin from from

open. Your line is

Colin Rusch

guys. a Thanks lot

you and of with it you and partners options given of pretty potential equity portfolio, capital a the cycle. capital give in front Con with of you you you that diversity the the you the sense to in are did process, compelling know So early particularly life you that transaction keep like the in that front are earlier more deal us a you Can Edison, having at closer the seems to cost looking cash no capital of have steady sounds come know moving basically from have the and sort up where perspective.

and you evolution four about cost the you Can think and you Sunrun of the how call breadths next, of we a should the capital are give or us depth of and six quarters. options the over for sense evaluating that it structure,

Bob Komin

are in increase so seeing of market. depth we significant a Sure,

peers confident, least competitive points was some data at points you know priced interest. debt process seen transaction from know great with You below XXX a know the You and pretty deal there: subordinated basis a we’ve of what

probably single scale it’s than to you interestingly and an time week scale what has of we extreme utility grade utility ought see year they in that five where have still know might counterparty example investment Although spreads certainly been you know period I a believe XXX utility demand points three above basis transactions, given transaction yeah to over a of today. be California that to able lower

there new growing space of year. them the that facility. into the number see during than cleared new to investors a we’ve none the When I we ABS lost had a the you know was in lenders, We had seen, replaced you know bank continue We come transaction interest that we market, reprising. investors the deal of that the mentioned seven syndicated we in

the of very in the the So in the and asset. interest I’m at moment depth comfortable market

Colin Rusch

Okay, and certainly times number the time on you companies a shorten figuring to were then just know side, period installation looking of there how out a new through for technology the of point there and see you labor area know at innovation through some is mitigate different that way solution? migration Do technology tightness happening devices. to in that a real to of at you this

Lynn Jurich

as example. of certainly, Yeah, the physical home know visits there’s there still are an to so lot opportunities you a

a to them So send you person typically know would roof home need sales and features, things. of person for subsequent the out you to also there to most is examine the

promise other example. some eliminate is that things solutions that, drones of some are there so and to that’s showing one like So

on-side you once two helpful, the an The really creation installation, more as know a know quite that’s The like hour meaningful. clear, in if but shipped not or shave you reduction that’s you meaningful you overall come side installed back go industry lot day say the forth. you there’s from to and if a will know a of from moves a time cycle think to getting I where XX customer as time costs

later. A things and you where moving tighter really is what lot of see and someone they customer question, up you know know days That’s it to you customer seven international get and you what signs markets in know installed apathy online so help eliminate rules, try and are we [inaudible] that making, a think slow to the really the good, to and waste progress, times. going can I of those we tight but automated interconnection lot permitting to good get

Colin Rusch

Thanks, me. and then one final for just question

feel year investments those of continuing are trajectory, you now Just into do seeing marking guys financials? to we the to growth start terms and expand those should the in support like need you in and geographies to you growth

Lynn Jurich

strong No, – expansion. geographic you know not is growth next necessitate not year does

So we deeper would our not, expansion. versus expect markets we existing in would big geo

Colin Rusch

a Thanks lot.

Lynn Jurich

Thanks Colin.

Operator

now at this no would turn questions I Lynn more like call the Jurich. time. There are to back to

Lynn Jurich

installations next increasing that forward with for get guys you talking quarter. we’ll and our Well, capacity to Alright! to excuse next work look to back week, me

Operator

conference. Ladies today's all and and you concludes a disconnect. have this day! for wonderful You participation gentlemen, may Thank your