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Sunrun (RUN)

Participants
Patrick Jobin Senior Vice President, Finance and Investor Relations
Lynn Jurich Co-Founder and Chief Executive Officer
Bob Komin Chief Financial Officer
Edward Fenster Co-Founder and Executive Chairman
Brian Lee Goldman Sachs
Julien Dumoulin-Smith Bank of America Merrill Lynch
Stephen Byrd Morgan Stanley
Michael Weinstein Credit Suisse
Joseph Osha JMP Securities
Philip Shen ROTH Capital Partners
Colin Rusch Oppenheimer & Co. Inc.
Jeffrey Campbell Tuohy Brothers
Sophie Karp KeyBanc Capital Markets Inc.
Call transcript
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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Quarter One 2020 Sunrun Incorporated Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

pleasure the my Mr. over now is to conference turn to It Jobin. Patrick

Patrick Jobin

brief thank Thank today joining the for you, and you for those operator, and for on the call sorry delay. us

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

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

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

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

Lynn Jurich

Thanks, Patrick.

value share to megawatts of of or of grew results first per increase. XX,XXX strong. XX representing pleased $X,XXX priorities. and customers, NPV quarter a we are XX% the strategic $XX our Sunrun’s We deployments, net year-over-year $X.XX, to In We We customers and our against added now progress quarter per watt customer. XX% of XXX,XXX nearly million over base compared present year, created generated last first

strategy of successful. foremost position we growth secondary COVID a proving our Upon completing quickly on remain sheet, of March, impacts strength to believe appropriate. of to We in the the balance in near-term consideration analysis pivoted likely this when ramp prioritizing is our initial expressly the strategy to focus with

COVID increased and earning simply been maintain metabolism, But Today, of we corporate our sometime. provided during will our specifically excited most cash have company our agility. XXXX. catalyst. were we that initiative- initiatives have and recently operating about improvement the powerful generate on underway improvement is would expect in made changes pace net balance what the for I’m Many assets based the a

compressed of high April. We teams in rapidly consumer two up field routing lead improved our generation sales have of led may all-time sales an promotion months digital successful productivity We been weeks. consultants. our launched We lead our changed into efforts within the a moved leads even of digital to week. years Our to weeks. sales inside ramped number have and what or of that team We entire our evolution one digital and

of at end order pre-COVID and All levels. were above of in actions volumes that these even April culminated

moved contact-free branches, Down to in over funnel, quickly we have XX% drone-based inspections. pivot to us to our site inspections allowing of

departments accelerated have permitting We progress more bringing online. reducing costs by our in building

are have install meaningful to starting on proprietary use racking to impact expect We a we technology a that new productivity.

software field also have optimization launched We new platform. a

While to meaningful quickly. changes ability it that clear the our benefits drive too to and teams the us is actions, full is to embracing to early help determine necessary profitability it scale of our are improvements these

sometime permitting our frictional volumes. COVID installation certain our big other costs in and retail and withdrawal declines related recalling late have March, We were volumes been steadily as that much we they’ve direct and in briefly XX% in While sales furloughed continue and delays cost box jurisdictions, may down expect from growing to near-term for business stores, begun our since, impede as do workers.

position from to quick afford low the reduced us benefit Because at to generally an we athletic to are strong operate consuming levels without unit capital margins a choosing maintain costs ability our recovery. and NPV cash,

such, for expect two NPV As levels targets be will the next below we our typical quarters.

in combined volumes, lower channels and costs, of improvement more a cost into the These initiatives per medium-term, and customer. us customer be to higher enable savings will unit would deliver XX% with management per lead sales change in XXXX. $X,XXX NPV around which diverse operating increased our expect even we in an However, emerge set could

stronger position The to and environment we market partner. that our a that gains through local confident channel emerge I’m to is best share and highlighted will current improvements in in solar has our in business. gain the share, companies Sunrun direct business both

brand We to virtual stability. selling, a enable have the tools a customers financial reputation strong trust and that of

the run business our We have partners, sustainably. channel to be customers built investors, our our partner and maximize to value our and for

the terms. us selling value new partners with or All pricing advanced higher have cited for Sunrun. the to reasons new channel because They partners wanting chosen We bonus Sunrun, to our this of five the recently with our will exclusive for have and many to utilize partner not of tool added channel five they majority with platform, payments. on work from one as derive

unique than optimize design on the XX% sales more of partners have as and helps use them their Overall, to and us. including differentiates quoting further is it our signed platform, virtual selling. believe this tool We activities,

adoption offering years. transitions our the all in Brightbox, and and it strong solar remain storage operations, grid Brightbox In advance plus rates and continue be activities development for addition exciting increase Attachment are of will in solar and that that to the of we business underway the our to sales storage the coming is service standard clear offering.

direct we Across over Brightbox markets the XX,XXX in coming rates we Nationally, quarter, In systems and will in geographies grew April, installed be installations than more the were more months. battery first the all over XX% XX% in Area. we our business have launching Brightbox Bay year-over-year. now in attachment

from with strategically important, resources as sources they better the Our of to value during solar and ability provides grid important, blackouts. shared consume it and because It’s operators customers and manage offering can because backup utilities it when and also grid. Sunrun, battery be power is to provide energy grid unlocks additional to the the with the

million We now service advanced of $XX contracted either in an have pipeline. revenue grid or more than

very strong. The We is expect announce to interest the have announced five awards in coming programs and more months.

of with them and discussions partner to capacity potential California, provide level. at in millions local the are to we load-serving types of instance, that energy For customers with serve all in entities

further the but market These home and As of Sunrun only scale by costs opportunities extend value acquisition natural our our not batteries, leveraging lead proof provide data-driven the generation. will and the and of leader, improve co-marketing advantages is partner. solar enhanced customer partnerships

solar model, With with upfront and cost can customers our savings. solar-as-a-service adopt zero realize immediate

As as they did much on more households people are working more are than and In energy using electricity. at will relying they be California, staying home, daytime as more XX% previously.

particularly offer California, uncertain more Home which solar will when in markets value, protection efforts. and of financial need actions is can preventative for they during times, wildfire completed, been blackouts many prevention rolling burns greater This and not fire the have certainty soon halted. it critical utilities’ like most. families This enter year, another wildfire part season with may be prescribed batteries as as

still not receive consumer downturn want in we will environment, to confidence, are people early reliable it with indications enters it solar, more, are providing them and While prolonged this their economic the power they constraining without poor that even save even money guidance if and a want country debt allows since capacity.

the gain the strong coming strengthened and The to the recent only a events ability for Sunrun’s conviction long-term sector, as years. leader in clear growth outlook have share my in

outlook. sales affirms improving this Our through April performance

investors business committee social update brief operate. oversight. sustainable which senior on by formal to and a our ESG the governance environmental, addition efforts. a oversee is a embracing we and believe to we in matters to for Board-level our We This building partners, created for in employees, Turning important communities ESG year, of our our management

public difference. culture. our A few of big we Sunrun In including X health, systems and third annual pleased the company pollutants to are harm making COX. tons prevented that business published is a weeks core share our we of emission ago, short, also our ESG I’m nearly Impact to million to preventing Report. model known have

the we time vonReichbauer CFO, has extended and his company Bob has week. its as decided his that education. who in He announced to week, will Tom to Last additional spend interest family higher Sunrun Komin, joined with next support replace effective new leave

are its are a even consumer service Tom the join we that to including mission-driven has to the He companies into Tesla. Google, disruptive, agreed offering at experience will of Nest, energy in see industry help further leave, a has that While Tom we leader excited scale Sunrun been and team. sad brings wealth home. Bob the

turn want Bob, over it you QX hook I the we’re just off to Bob to performance. not yet. to review the letting that, With

Bob Komin

this Thanks, base last momentum the company Lynn. part team It’s from the been of the years. five a and tremendous tripling before market these IPO helping cash be build to becoming personal and flow highlight professional over nearly to while of leader, the customers

per per the to quarter per approximately was approximately now results. watt. was value per $X,XXX watt customer, customer, or the in first first or $X.XX Looking in Project NPV $X.XX $XX,XXX QX. quarter’s

first customer, per QX approximately or per or costs of quarter on creation creation Moving were from XX% on Slide In an of watt, $X.XX, $XX,XXX costs the XXXX. total X. $X.XX to improvement

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

watt, cost systems, $X.XX the quarter Blended of for which by projects of installation installation per includes Sunrun-built per solar well channel a the as first XXXX. incurred watt, our improvement partners, was costs as from $X.XX cost deployed

contributed watt, systems in for deployment batteries, Sunrun The seasonal computed increase last costs a increase were combined Install of unit decrease built typical on volume, by an to basis. from quarter. per increasing QX with $X.XX of cost in the $X.XX mix

$X.XX and of sales our first QX, down the per watt, costs from $X.XX were quarter In marketing XXXX.

costs period costs costs megawatts are by sales the In dividing deployed. G&A watt. Our and were $X.XX unit per marketing total calculated by QX total in

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

$X.XX than Our $X.XX in quarter the was platform of QX, services first gross margin watt higher per XXXX.

third-party in loan mix XX% cash and QX. was Our

to first teens. megawatts. remain mix ITC In to we at Leased expect are safe-harboring quarter, We able in higher from levels. this the to systems the extend deployed the benefit XX

change $X to We in change the due the sheet. quarter program, Quarterly generation finance our adjustments, activities. cash generation debt the now repurchases. project generation first other cash including defined total $XXX acquisitions common with balance cash. cash to ended was timing the total significantly We harbor in Turning can recourse stock our Cash as less million. of our and in safe business and fluctuate million

it turn over I’ll last Now, the for time. to Ed

Edward Fenster

and Thanks, recap metrics and quarter our discuss asset I’m net I our our earning capital assets, review Bob. for our performance, for the and to assets markets financing runway. the Today then gross will going

an earning an XX. to or were XX%, were March billion billion, earning year. the XX, as year. from $X.X prior $XXX Net increase assets the $X.X XX%, Turning prior from or $XXX of million, Gross of Slide million increase of assets

was March of XX cash $X of million $XXX million as XX, million year. of last $XX from quarter, total March balance or an Our from increase last

decision making digested investors COVID solar making public-market divest return shines portfolios, available while of assets to to their residential again certain becomes where brightest. to decision fact-based markets is caused as on onset the data data-based This While implications they normalize. possible, and ongoing beginning are the is

financial XXXX experience crisis, to Consistent payment with the customer excellent performance. XXXX continue to we

XXXX, of each delinquencies have they As days lease as the a been are XX, basket, and months. any in total percent in than April XX, XX, past XX, at receivable time six PPA of lower XXX accounts and

at less is value We for enhances electricity due of use the power customer than our in top pricing to charge waterfall. the further Home electricity of This jurisdictions, solar And grows electricity proposition. the savings payment from as the utility. many tiering increases. incumbent

from Slide credit costs increased around from of and X% debt performance COVID You had senior asset to reaction have both been capital, the XX. around this our slightly raise more as strong forced became would on market see X% subordinated The average weighted initial onset capital to we expensive. can

swap below However, lows. printing all-time likely and strong medium-term, because to payment we that environment. times continue, X.XX% all trend the have at expect At a are interest should performance or spreads rate the long-term market over XX-year quotes the ultra-low-interest-rate Today, time, the same XXXX. to futures fall through we we entered at

to we a base As average second X% provide class weighted decades soon the we expect spreads low rates asset for below will the a with demonstrate cost and capital of that lower come. through resiliency this to combine recession, resultant

in inception-to-date, asset-backed the enjoy bank we much bank raised have the market we with twice market. in relationships in debt We been have securities strong as commercial numerous, While commercial years, the senior lenders. the last as couple active ABS market

in the Today, at today’s to market all-in terms long-term enjoying to conditions that, we commercial better X%. with lock debt, additional market the ability is market reduce about offers improve. with advantage senior right the relatively for swaps, spreads One rate bank as now rate yields while interest commercial bank base can

as our and market that to becoming becomes we than cheaper expect In through performance extends addition, as time collection inflows securities capital period will return, asset-backed understood. ever recover, this

tax don’t existing also and we investors, we April, where see investors significantly pricing from one discussions terms funds. terms fund upsized with materially ongoing cycles. to in equity equity in In facility, other costs existing on vary tax through identical and the continue at line We capital interest to significant with are

long a be improving us affords the and has project runway Sunrun finance capital market selective ability that in activities. to

May and prearranged provide debt to tax QX, As company’s capital projects XX% financings equity of XXXX, X, at megawatts project only the commitments, value. XXX above fund closed deployed considering beyond what was in approximately of of contracted leased capital

also additional project advance finance installations rates. to capital lower fund We at have

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

Lynn Jurich

Thank you, Ed.

questions, for line the open Let’s please.

Operator

of Goldman Brian your [Operator Lee from Instructions] And first the Sachs. from comes question line

line now is Your open.

Brian Lee

a environment all that’s maybe platform? of picture seeing to sales, question with Wondering safe. with this shift you’re the well for to guess, everyone, in start what Hey, sort Hope questions. you’re thanks success that just on, and all I bigger going taking off. virtual the

part gave I your provide, commentary to Any great? around you going how quantification further sort you end broader you up being? do trends, What think but know structural to mean model of business of of could cost out, you to specific if that could as the kind that’s think kind structure? And what seeing? be some you’re it then that’d of shift,

what on online. I do environment in you And what to do guys versus resi we’ve the virtual you differentiate just channel last adjusting of that thing, everyone does platform But kind the you new what do, everyone – front, that to or is do is accustomed on going how do anyone differentiate? and and been solar? this suppose to

Lynn Jurich

Great questions, Brian.

those. So I’ll take

evolved is, think in a success a do industry I two we’re to this seeing of the how sales. we’ve would think we’ve years benefits conversion of month. the And taken in really the done probably of have lot one And digital in and so it I

that, if the we’re that, So, rates through stickier what a what in less is face-to-face. the it seeing likely we’re people follow less a digital a install. are the environment sign And likely conversion – order, feels is selling and they’re overall the to see holding versus likely digital, sign they’re all sale. more to to to way but It they’re we like

and sales they lot is more So April, have a fantastic, to significantly They had that, that the day just force kind drive. we of means And when can delivered put a productive. fine can per force. overall which a be orders because is smaller many to point appointments our on we conversion with a our wash, more handle ever where sales day record it’s in than

So it’s encouraging. incredibly

face-to-face big other We course, of through stores a activities. historically have and footprint still, retail

I and couple April, this it’s So, think a still structural while adjust [A Shares] to kind in long-term But and slowdown up just we are are we’re going – sources. other digital hitting sales see of and [ph] records a the over friction shift. next quarters, overall, closed as of is

But what the virtual seeing shift hard want higher activity of with if to to to kind conversion may So we’re productivity, say same sale. rates you of most percentage. it’s your

mean still for generation encouraged probably going transition big and acquisition to of it lead to the very You’re ways box are I’m out stores But want what efficient those like by reach do we can to homeowners. do, retail this because costs. the

activities, seeing. sales sales about in I that the quantified both of of towards per call, customer. I combined, improvements think, half will that about lot a these operations $X,XXX save put we’re I and the

is is So, which meaningful. probably where customer we $X,XXX somewhere directionally around per pretty are,

that and and to think, make systems me, design you’re where to excuse do just the The the after you for going changes question the remotely have around visit that, downstream do way tools a is to of we not differentiate design homeowner – sleeker we the bunch a I create site. first differentiation, in have way

from they’re balance one also equation. design and and the now, is ability real to quoting to tools the piece gain and this win seeing advertising. because of more Advertising And right there spend on those is that’s the of the that’s that think in benefits sheet So we’re attracted just part our I of cheap partners, channel There’s having platform market. for differentiation to why share technology strength benefits.

they the long-term able And companies leads. there’s So, the to financial they platform. spend security want generate stronger, actually stability, company, then and are think of and people capitalized feel more that to better which there really a – just sell is the there on top where I to attracting there’s also

we be that some ways those digital the front. would So sales differentiate the on of

if all get me questions? your know I miss out. Let I Did anything

Brian Lee

I all them. of did. you four covering Yes, appreciate you

one last and Ed, one on. for it I’ll Just pass

stability you balance this us context of financial digging or as overview, the you comes provided. just this and environment, where of from? mentioned, people and the But point the in I sheet really the liquidity On give everyone’s always, appreciate think, sort sort you and financials in can I are into

the through then color you us more transparent, know maybe if see liquidity, stands what us sources around could but couple like it case can and less you’ve have? Can could sounds a And you of as also, pieces, granular of it you there’s your sort few other that about paper give what talked walk but you needed are on to. of bit because today? pieces, what we in capacity I capacity, terms here a where leverage a you in of

through liquidity? around could a couple So of of walk the if us the just you pieces kind of sources

Edward Fenster

Brian. Sure. Great question,

comes right?. facets, several in the So liquidity

the I in availability well, there XX, hand, available It’s could hand, are on sheet, equity footnote, undrawn are Footnote cash, clear. is on commitments. one debt is only the worth which the be context of drawn other balance the we then the is and that the have in disclosed it there think, there’s against the assets tax in what on noting which On indebtedness already service. And the – and that

You and have to deploy assets. elsewhere capital the available commitments as available to build what look to we total us to in the to Q see the is company for continue

even of we’ve any XXX above fund continue additional expect capital. Obviously, next add of always, at folks, as us, That and value, the call markets raise that to we capital even didn’t discussions summarized in QX to the remain we’ll open can saying the we assets with project that in said, raise stockpile. by XX% megawatts to near-term or beginning in are and that, if we I to contracted over

we of sort which and we the and to committed sheet available have we’re the fund confident between this that, So that which we have capital that on the installations all that, have year. balance might to is us,

we able and the to add over of addition, expect balance the value. course In to cash we’ll that book be corporate our year that hold

Brian Lee

Okay. Thanks everyone. a lot,

Lynn Jurich

some that might I wait I for the prepared comments question, as – just understand the spotty have may of coverage. before had next some we

transcript posted investors.sunrun.com. So we webpage have our the to

if So you can pull of it. it down miss you pieces there

Operator

Dumoulin-Smith Your of Merrill Lynch. from America next Julien is Bank question from

line now open. Your is

Julien Dumoulin-Smith

to you are cash thinking And how round if on and NPV the little metrics? terms to follow-up Excellent. at frame Good know you you NPV about I for it I’d per just a how I will? articulate, may, three to to a in talked that trajectory, ago, respond you more But relative year? to that. you that How you you curious presupposes per just doing what assumptions, thinking how have issues moment Hope And are I bit watt are but this about you points, question, again, Wanted if be are thinking about a would certain trajectory be just talked but know burn se. afternoon, various all everyone. all well. about maybe hard easy

lot volumes well And trajectory growth? about trajectory burn… gross compounding relative seen then are talk as to related, cash that you terms in thinking I you of the to there, the want but if know to well of that as there’s we’ve how a like, pre-COVID,

Lynn Jurich

Sure.

Julien Dumoulin-Smith

sharp just a trajectory and very of seems inflection? what generation expectations, …NPV volumetric given like

Lynn Jurich

in I Thank Yes. we are providing business. retail too many again, not [A open so of to we’re environment, key because not Julien. and control company’s think, Those with just What you, this pleased store seeing outside levers, they’re is are things is, that. Shares] for the the guidance formal closed answer

So, that facing. those – are we’re real constraints are

believe And they’re performing more range, shutdowns. If you of QX, we’d the the to down that on that will we’re aren’t favorable end any end the in tracking of moment, the the – to industry. at sources, this at residential be better industry on further look again, be reporting assuming of doing most we XX% there XX%-ish. sales But

I sub as probably then out see NPV climb next that then we more couple we that, come would level, to quarters see well a after into would those of that, that NPV dollar and normalized is what lower target. over for you the QX into would think, back levels. quarter up down of And think the

that, of and I washing preserve it’s So cash year. taken that through cost think markets of will actions the mean with all shape, of through strength a news is the would quarters capital balance couple our we good The given the some that of this friction. even we’ve the

So generate book will we value.

have refinancing to – maintain to plus any going have – without the cash, assets. grow likely existing NEA We’re

about the nothing and really and care you upfront that consumer and money. resonating sales – of season home other the come batteries there. lack taking and, of is is more side So, people that think, just – just around the of of I have see resiliency saves solar and coming coming up a my how acutely. family of excited business. I wildfire another resiliency much And feel what my the on product that It’s taking we’re clear again, people significant message of care we’re control costs in again, that more the interest the it more April out is And shows with mean, this. back and

So resonating. it’s really

value do all given we emerging optimistic expect the to So year. this book wash and the stronger quarters we’re grow friction about even quite this of We a – will. of to out through, couple

Julien Dumoulin-Smith

a XXXX twofold. XXXX, you’re you Implicitly, clarify where cash for cash Got ago, burn it. now? for you is about know saying aspirationally But gave what talking et cetera. burn no to right? I about refinancing, caveat stand were you right the just second Again, no But

then certain to lead on. do metrics today, a to course per NPV you NPV Based couple of separately, what generation relatively back have right? [Multiple is quarters, that amount you that And speakers] you’re with there’s reason believe it – going watt, seeing good going over respect of to on actually obviously, of are the comparable be at a

Lynn Jurich

Again, Yep. assuming, there are not further changes…

Julien Dumoulin-Smith

Absolutely.

Lynn Jurich

…to easing many as be is of people to as back next of couple to come keep in shelter our And believe athletic that an generally them in that. as take like investing, going month. we’re well, last we’ve would place and quarters, that things growth the trying do we are over position part to and we’re the seen a the making keep expectation. the decision because possible what bit to Yes, to we want be as of over working advantage

for and our of two. calls, markets the the end and health of allows us will come So and next lower backlog out the financing the of quarter historical cost year. NPV than those the that capital we where at or be back But of the make should capital to

Julien Dumoulin-Smith

place today, are be metric the super environment…? Right. At this about in the end NPV just new putting supported that the is financings the to you of right, the clear day, by

Lynn Jurich

contracted existing It’s existing. To yes, finance. to be project be our very with clear, clear, very

counting drive relying to not anything on we’re improvement that not result. or on significant – a We’re

Julien Dumoulin-Smith

have… you spreads all market Existing Right. that

Lynn Jurich

Yes.

Julien Dumoulin-Smith

sector, range of cetera, cetera. the et et …on

Lynn Jurich

Correct.

Julien Dumoulin-Smith

the Okay. appreciate clarity. you Excellent. for Thank it. all I

Lynn Jurich

Yep.

Operator

Byrd question from next Morgan from Your Stanley. is Stephen

Your line open. is now

Stephen Byrd

families are well. Hope doing all you and your

Lynn Jurich

Thank you.

Edward Fenster

Thanks, Stephen.

Stephen Byrd

the we normalized about let’s guess, sort assume continues, as I rate on the of financing, just wanted of commentary go volatility interest ourselves little aside? the to but think to noise of might commentary a the you I down. low some about is of think you the a very in safe this about environment rate financing that that markets. of just think for interest cost giving find your back Ed, Sunrun assume, I state mind Would how of to you financing settles low long-term sort cost excellent environment, market in putting more the which

Edward Fenster

Yes. question. Great

which in little X%. was I prepared as to a remarks, it expect prior on a alluding basis consistently, cost of average So, bit on COVID the side to or – basis be high we for single we saw XXX think then call debt the below weighted is the would And over, capital about rate, the points X.X%. senior I today digits. subordinated And capital spreads in to it, swap at below slightly

uncertainty we actually And in cost, though data capital in might those how the to downturn, think, from to I part, market a economic perform some even good reflected, investor developers all XXXX assets in XXXX not as crisis, other have do. the financial

may that of when think with should increase what come debt the side and on out on as particularly So is spreads, senior debt, well. advanced performance, I should cost of the likely piece other believe capital to the what subordinated we senior the will happen this rates then we will decrease, continue decrease be payment on excellent

asset And residential of regulatory subject and thought regime. failure, scale individual quality. fantastic solar incredibly I electricity, that residential actually, weak customers said are lower-risk individual long have I’ve points scale who And assets investment-grade, showing solar, regulation. utility because class equipment and a is systems have to credit than off-take the utility and solar single actually here, as diversity sale because we’re high it’s of

find to their get think, put below as And mentioned that they’ll asset a and money, figure is attractive X%. out class, data people average drive where back capital which as will, at of so this I I – to I cost be very the investing to look and weighted think the

Stephen Byrd

about think to the back back COVID-XX just and economy That’s I your there’s resumes. markets as step bring emerge growth and from helpful. really And to attempt then an wanted limits the activity on and target

sort to the what on you be do not it financing like customers, visit getting in just At of like strong challenge. limiting a point Is the growth? sounds an Would of of you’ve out think a state But been resuming view? It sort business a is overall. issue? personnel of given sounds not there has also high-level, commentary it’s of the very from factors it which terms of

it short you achieve what order, I just like think is excellent can what can limiting struggling I’m guess, factors – might growth here? the within trying through be with feels relatively to but growth, I’m

Lynn Jurich

which Yes, think, you. taking with value the mentioned kind getting and a solar-only as with getting resiliency around the the opportunities And consumer services the is good agree of batteries, on call, to offset question. savings-oriented house cheaper previously, product. the proposition We of and and stronger of proposition more value is I grid the than do cost batteries care control was it I where

really big contracting think is And healthy customer I the in actually So a positioning for? right. shed and that’s what you’re

short-term are offices closed permitting constraints really the there think, that I physically. are – just are

getting it’s Bay stopped end March, you Area weren’t about for look of at XX% offices if it of the was a permitting But better. while. just taking and So, permits,

New York is still down.

away XX-ish it’s it, much But and percent at people and Now down. chipping think that we’re we’re closed at recognizing I is better essential are an service. this still

period. that a just was you �� factor face-to-face awareness then industry generating there’s with so to just accustomed an just there’s adjustment the customer And methods and leads

safe that also return just the have figure it’s And more sometime. to and little retail how that out activity sort stores. likely we adjust more So traditional of distancing those and to does will industry how advertising, take with social a face-to-face

in as certainly certain month. this that for geographies planning as early we’re So

constraint – really it’s is and I either concerns. the health so But quarters. the it’s years, So not – I safety again, – the so

Stephen Byrd

had. you and very really That’s That’s much. helpful, all thank I

Lynn Jurich

you. Thank

time really thing guys is things other signs able that gets when changes affect offer, the And, improving cycle process you tighten customer you that’s from one as been couple recovery of I installed. it lot right to have the contract to a would The months other typically. comes motion on these a of a when If the of we’re know, focusing is we’re hopefully, too, now we in the that, faster. and

able to last instant a just just and possible, install. an And were permit, moved what’s same-day to Obispo San Luis highlight to, do week, we

afternoon. the we permit and the So in in the we morning, signed customer it got up install the through

again, But whole operating. our normal to not what’s start of system. be you possible that’s when can to So, going streamline way the

Operator

Michael question Weinstein Credit next is your from from And Suisse.

open. now line is Your

Michael Weinstein

good guys. Hi, afternoon,

Lynn Jurich

Good afternoon.

Michael Weinstein

you could my the – that was current to not I preferring Is conditions. have major ground? about customers I’m more actually you’re expectation, Hey. Are seeing lease bit see what but wondering under would sure recession? in talk a the leases loan been little that if versus a on

Lynn Jurich

It’s that we too something will as early to think well. I is conclusively do that. – to comment happen on expect we that But

and tighter, be I precious fact attracted them. use debt think as things which people it’s have they want to that, to do solar-as-a-service don’t But constrain model, the get doesn’t their the if obviously, capacity could intuitive. to not

So some intuitively, it think we early makes sense. early it’s too but positive quantify. There’s to signs,

Edward Fenster

before I solar some loans in performance were COVID, mention. seeing Even we leases. and it���s And differentiation Ed. might solar between payment

watching and think I that’s each relative something And relative attractiveness product might the customers will so carefully, it people be too, the well. affect therefore, capital as of because to cost

Michael Weinstein

Great.

Lynn Jurich

safe megawatts robust pretty equipment XX% remember, is, XXX to warehoused nuance have on the a other we one pile tax where harbor credit. we’ve program, at about for And there

is the course, that COVID further interruption. given to expected now, extend So than of likely

to bigger, also So that credit. we as use get starts are to the delta XX% able

that the So also just shift behavior. of the shift and market helps kind

Michael Weinstein

$X,XXX per process. you think things that efficient Lynn, cutting incremental you this the the you’re in it mentioned means? and that over the right. the that’s costs next as do value, making medium-term. really or medium-term is year? What and more Is year, Is customer sales All –

Lynn Jurich

it’s – say, work quarters, of and would Yes. four early I within through next just to it’s capacity. this about couple year. still But reach – times full not just a it things and to next it’s first-half able and take that call cycle interruption at operate going that again, quarters not I would given wash to the

Michael Weinstein

Gotcha. for and Are into circumstances? you the year an current expectations hearing renewables heading anything point about in D.C. under this at support policy for election

Lynn Jurich

XX% – Ed, don’t know But and certainly greater of the I advocating want I counting a credit. would climate anything. change. not not we’re for We’re know at if put policy, tax you we the of think can it’s to we we’re biggest don’t that We impacts on think it. have extension our one than I chances great on the add on that.

Edward Fenster

lot priorities are who of of moment. good are a that’s think supportive strongly There a a at I There’s No, people of number obviously it. the summary.

do under think forms we’re with to that would base case policy proceeding our it be caused base continue But in good certainly utility or given Our assumption less would we case good plans the may be of happen. scale that COVID than that be of and sense not. makes to not solar it’s to for it But residential that occur. a and it, the likely a has it policy, all not may rationale would it’s interruption it the growth

Michael Weinstein

Right. megawatts tax of not an you of might want harbor, XXX credit with Actually, safe anyway. extension the

You right? remain advantageous in position, an

Edward Fenster

the prefer larger generally a pie, is larger to policy. Right. a We pie right that

positioned there’s if extension not for well yes. are not an there’s – now. if a we yes, So

Michael Weinstein

has section Hey, affected that you to I’m year, auction weak of one wondering last the on had value for the services, question in results ability grid a just crisis the pretty how business? next this generate your

Lynn Jurich

it’s say, independently. along would been just I moving

not challenge I to the it’s in with really the helping proposition, rework think it’s only credit rules market. services, value that of sort the the

these that they participate value that able participate stack our can assets are to for valued fairly So the and bring. in

entities. So away chipping load educating different we’ve serving slowly that at been and just

it’s So I don’t progress. to – continued really

quite next that a little think, much, there’s people slow so months. progress who optimistic I over obviously, aren’t announcing we’re on the of couple that working be But further some bit. as they we’ll

Michael Weinstein

your for much time. very you Thank great. Okay,

Lynn Jurich

you. Thank

Operator

is question next from Your JMP Osha Joseph Securities. from

Your open. now line is

Joseph Osha

unrelated the taking there, Hi, for three questions. thanks question. have I and completely

to or is really That’s impacted, little been been that, more I just a relates hasn’t – happening being that and than others? heard are it what’s whether I’m market some treated commentary. people that equity, and my tax first has here first equally your question. The wondering that

relates one people had puts been hand but of availability. disrupted. know lower, one is to second are and kind the that the The And other activity on workforce I just hand, on takes a problem. this

situation I’ll then one, And of third So availability installation terms crews? in I’m of just what the like looks wondering the say in minute. a

Edward Fenster

any By investors being that haven’t couple seen and deferred. in or terms probably can you tax of of who at their because considerations. some capacity, or – they’re face There a to equity can significant the Sunrun tax and There they’re the tax or because have who continues we Lynn market the question equity existing answer would are capacity. supermarkets least are the in Sure. be some projects marketplace. have more large, I investors change tax as better workforce to are post-COVID less healthy. talk pre equity really doing availability The of or

Joseph Osha

Thanks.

Lynn Jurich

in hiring because talked really in back. do we workforce workers we we the mean, terms of growth started expect have are I Yes. some wherever the certainly, QX trying the availability, And – goes and about on we as those to return we prioritizing, preview, to furlough possible,

So decision. – – be we be served dropping well by – it’s place going on trying we’re on – the that’s it’s work. do to that will be differentiated real a have we believe not that a a to But ball to

I growth it’s be skilled how if we’re going in going forward we’re shortage many and be going electricians to ambitions batteries things. installing have, how think, much labor look you going our – to be for is just a and and to to

with in and career the employees. company culture that a a the of that competitive is around pleased and put values So programs place we lot pay front-line pathing building human-centered really and we’re

to we to that of I because this thing. it’s ball do going think it, employer, us over for be So that’ll big think I serve us. be preferred challenge couple don’t worry but a we’re a on ongoing the the well quarters an not dropping next is

Joseph Osha

storage revenue? And by I how Okay. is, How in to are its own over future And potential This “Hey, some Thank we you of mean that you price saying, saying, then of storage kind What context is on can third recoup your back gravy?” that little these the that any “Hey, deals final the let’s services. stand you just to fruition?” harder think is and look, question to one. assume monetization a do a feet. about funny the and on are push two you. offering grid of as Or third-party services time, has grid pricing we come

Lynn Jurich

is positive, to because unidentified. we really neutral or NPV neutral – it contracted the to we excuse or me, a at – question really we are debate. in forcing the storage of discounts, an lean grid will we know contract standalone. solar like value. first, so we’re great have on not positive counting New some into that – keep not a towards ISO If and But NPV sort ongoing We’ve we trying England, lead at We services, and really have

we may we and right sustainability more economics to So haven’t level continued and But that and a be take more focus sense aggressive aggressive couldn’t thing sense, that do. near-term cash on the our done opinion, generation. just unit

Joseph Osha

Okay.

but you a deal So it I bag, got in like the is that specific little those – areas England, interesting where okay? you’ve customers into said, in will a lean more, New

Lynn Jurich

Yes.

really geographies on you start because as is to, then it. in service goal have as to Our many can programs possible, count accessible let’s grid

been we’ve to making for that, on So call be place And count we’re spending really development we’re California to lot and where the what I storage is relied and that’s some is work. for a progress actually doing alluded And focus. there upon. the market a time of capacity

a want do their these of asset. but lot one, ISO is opening So, an lot New been the an projects is customers power for their what big earlier turn smaller electric of – up really into to millions to asset the plants. up to homes have virtual a England make start we – open a opportunity of – And electric

vision. So that’s the

Joseph Osha

Great. Thank much. you so

Edward Fenster

$X,XXX customer. talk thing about when we worth services, might contract being And Joe, I grid a one about is add that,

in, the making assumption a described extent, are leaning Lynn certain that We as we’re to

Joseph Osha

Understood. you. Thank

Operator

Shen Philip from is ROTH question Markets. next your Capital from And

now is line open. Your

Philip Shen

Questions.

where you installations, it possibly to be Could about As a expect lower that timeframe for could because and see we to time – relative on do QX do relative can follow-up Lynn, might PTO? the you if see QX? trajectory talked QX. just or Thanks. be That’d Or go? of sales lag great. the Is in of comment what you to see the higher? extending? QX between What So on – QX, the you

Lynn Jurich

Sure.

in see improvements QX. will you in think I

that’s XX%, as had by we said, drop as recovered April. we record sales about week-by-week. even steadily saw really day just I in initially And, So a

be So building offices. permit friction. be – closed still there’s There think, will I there will still

still New York is shutdown.

we So expected. it’s it’ll but but not, back than faster QX, will extend into it coming

as not things to to guess, things improvement but long from get back back – way don’t previous worse will would QX, not QX or all as that be I the an but levels. So change,

Philip Shen

Right.

pre-COVID example In post-COVID? But terms numbers. I may pre-COVID or versus have dealer times? how to direct I in know dealer between changed more publicize XXXX, see installs for Do exact for installs to now was installs, and relative of more XXXX don’t you mix wondering those direct guys expect that you

Lynn Jurich

We digitization and good have the are people faring on we ourselves Yes, install, like larger process. can better. they of selling advertising keep companies larger employed some do of and seeing the dealers balance just they question. that to are – the to spend the sheets It’s

generally. share market So – have see suspect I all growth. our the would leaders, financial I also in, reasons, positions all pre-COVID strong our attractive will dealers for share that that we in think, we’ll versus the have those direct portfolio will that take take are that But

variation is very it’s performance. wide terms the as not the of interesting, So in very dealer data – market, the

Philip Shen

a And metering know in the role you then take other Association couple policy. potentially guys Ratepayers position. I I NEM, files a of challenged a petition leadership net that in with render questions. thanks. New And last a could month, FERC, Okay, believe England

ABS wondering – an that that ABS and deals for the industry? could And wondering then But do We’ve know on for I comment of when to some get deep? now. was some unrelated, possibly provide this context a maybe I maybe the and and probabilities separately can seen you is you bunch result outlook back to that I that if how mostly you could that if was to completely back expect outlook. and you as solar might autos. come market through priced market Thanks. market and coming talk

Edward Fenster

It’s both I Phil. can handle Sure, questions. Ed.

just name, have It it as So the England Money Dark it’s just Group. that is or the the disclose matter. Their but first, petitioner mentioned, Ratepayers Association, doesn’t merit to there’s really and doesn’t ratepayers. for really petition really no you substantive New to members the its

that reaffirmed net and has most Second jurisdiction metering. probably of over held FERC states importantly, and

at in recently sale sale FERC and and net XXXX only as you And do create not a know, wholesale sale, FERC metering earlier decision, an as they’re drafted, most transmission wholesale. policies, wrote XXXX alone So regulates electricity. that let the of upholding a

State-level probably are addition, metering will intervening territories, keeping regulators, know. in NARUC, In net a and XX anticipate states. as there’s with who of long line net and nearly all states, four of including we policies and states of vigorously control be you the exist support D.C. metering in

And then net meter States. United would the in finally, customers I there note, are X million

governor reverse its the metering in to businesses, Nevada no And the Republican FERC a for was net the major would that not legislature. plus by so ruling political decision less the overturned previous over written in oversaw by harm – Americans had And those suicide. reappointed of and who depression, thousands regulator be XXXX guidance you recall just there his of in middle and the may career

intend and rewrite granted NARUC actually, matter short on And no finally, of doesn’t initially in given was extension, a requested to days. of comments timeframe, FERC requested FERC we believe And precedence them the decades although an XX urgency.

the going proposed guess, us to that overwhelming to FERC’s confidence is I So petition. summarize line calculus merits and the give of political of the time really the lack opposition, the petition, all FERC just deny

capital and you’ll of public that, it’s credit just pricing pricing in currently improve. in see many markets. the I subject to other supply debt, capital people It’s if that will terms equity comfortable just And not – is that market generally inflows market, the market will to pricing and like become think demand flows credit quality, to ABS imbalance. ABS

data bank And good. massive why They of expect side, and liquidity their fact-based we commercial underwriting. noted the do markets attractive. is make senior remarks on They’re to decision-making. like prepared suffering that’s the so at It’s deposits. not I look situation commercial in that outflows more Their banks able debt are the be

market. the to it’s And market, inflows it overflow to would like So as over near-term, over bank be I return time. market back going commercial senior the I the that intact, story is expect is fundamental debt the ABS to will time, in the market – expect over

Philip Shen

color, Great. Thanks the Ed. for

Operator

Your is from next question Colin from Oppenheimer. Rusch

line Your open. is now

Colin Rusch

open. so? and sense Thanks to on that’s of how seeing actual or approvals of the that to of historical number been and offices are a better throughput love permit I’d month over changing those relative get are thanks actual the so the permit the color the of right much, levels offices for now last they levels and

Lynn Jurich

Sure, Colin.

were nationwide, X, ago, closed. So was about to XX%. one month XX% I of by [A that’s Shares] think then reduced it And May that

And probably and the the – likely the The So we’re about even today, pain kind hasn’t changed installs of a XX% in even that points roles proceed. Area nationwide been XX% have further gives couldn’t due to XX% I ago, month And – down yet summary. not and to this and week, Northeast is as about then Area, of for that in installs which York. in of Bay Boston and about California can’t a proceed. just of that’s now think you the New – Bay us

shut. that those that So, are are ones the actually –

are for In mail of permitting. than Shares] that moved the terms to and open, XX% more e-mail our of ones has [A

comfortable they’re more push with are been a that. SolarAPP – hasn’t outside the closed, the it offices – because So the that it we the do automate it to get and think and has long-term, these this nice will worked to that for huge be a adopt ones process, bottleneck. starting of But

Colin Rusch

coming And inspection systems? on, look is the to point at process turning to this with different at the the systems then of how out in that approve – terms inspectors

Lynn Jurich

Yes. that There are well. some as delays certainly on

been think, haven’t think. wildfires. The dry – the these because that needed I again, of – get preventative done it’s delays has this there with particular, I all But, some because they challenges. in – maintenance lot and a of been done PG&E, there’s of pressure had to we’ve

fall. have there’s think this real more risk blackouts a I So that we’ll

So some the stuff. to there’s pressure start expedite to

starting So certainly a but of that’s the I I think it’s hold, to yes, have quantification friction, there. take but don’t

Colin Rusch

one one. Thanks. last final quick then And

installation switch you a optimizing are hardware and those any edge, looking potentially integrating the point? crews, on extra Just some potential at installation processes bandwidth around at to or changing at all new given this

Lynn Jurich

Yes.

We’ve the have of We’re site, of fewer customers making around taking help the washing free. the out practices a – to visit, preserve cars rule help site, our all We we there. contact having make drones lot for put site of hand progress to working best changed can the people people safety it which and one, the on there. separate

– So we changed the some of have the practices. installation

racking one the on And has promising of results [ph] new call some a called about – showing terms we Track things we in product early efficiency. that bit really a we talked did of proprietary are the launch Speed installation is,

but early, made to. forward quantify, change is again, we’re too early So to that a that we’ve looking

Colin Rusch

guys. so Thanks much,

Lynn Jurich

Thank you.

Operator

Jeffrey next Your Brothers. is from Tuohy question from Campbell

Your line is now open.

Jeffrey Campbell

reduced could their by fruitful costs, could a automation? potentially we it describing? questions. quantify way, We’ve for this taking here, been had really we call costs my be the it’s reduced When been digital about what percentage of one. permitting be Thanks long think can if sales percentage by soft And and what you’ve

Lynn Jurich

Yes. The $X,XXX. big bogey is about

it just look there you installing U.S., treat Australia an versus If in at and appliance. they as more where like cost really Europe the

hurdles through to go a you So and have of lot do. permitting we interconnection don’t the that

So that’s is different. a possible. bogey. U.S. The That’s

that And lot unlikely eliminate some local desire of we’re things have and we a and the that requirements the control. for to it’s so code going of

think get all So we the I there. don’t way

medium-term, in do acquisition out about we install about quarters, say, I efforts answer of earlier again, and due we think, the per five $X,XXX me I can think short-term, come the that see before my the to of let the now. cost in I out put right place think, come costs $X,XXX

But we through. by and created as $X,XXX, permitting the to automated really – customers it’s linear and forth the go be to and compress and cycle friction the start all between that think rollout back kind that’s it to process get the could of that have the $X,XXX long time and somewhere I just

Jeffrey Campbell

a determined $X,XXX the levels? permitting So sales that $X,XXX just time, that installation sure the represent that and I period over on those could of would the outside on make you’re and out from two come automation about saying understood to

Lynn Jurich

Correct.

Jeffrey Campbell

right? Is that

Lynn Jurich

Correct.

Jeffrey Campbell

great. Okay,

to I quickly, was because was Just I and thought listening interesting. it

market On into would of pricing, described no line that emerge seems pie now that the installation. feasible be compromise mean, a grid the a price, customers where to after on as hold whenever conundrum regarding selling when are piece like you batteries the a offer later services good grid on a there services the is you’re approach? services the I

Lynn Jurich

Absolutely.

Jeffrey Campbell

Okay.

that said large headcount, period? but couple you since doing total business quarters. you’re to over best to percentage to clear, some be of that to Just the is Should the increase we customer hold to the during going next expect decline cost your on

Lynn Jurich

Yes, you should.

the cost our the the that overall environment. will a lower want So act of because volumes. cash NPV be due emphasize to because absorption and – that reduced around to cost comments historical financing can than I strong that do made we I just less the without fixed strong being burning levels, of Again, higher

things will the couple it’s think costs in level But rebounding. have the over given unit yes, we higher we confidence you So quarters. the right see of next move,

Jeffrey Campbell

avoided? sales contact? of possible, last with give know kind That’s surprised, can a if very the read thought. drones. to human that quick I you great my example, was like house for wondering any sort I sketch us just regard little in system mentioned And you of what things I question are I Okay, is, you But, ascertain it’s was to installation I a personnel house solar all. things the install to those you. the that set the And to being Thank how sort how also without of the goes on, able visits system standard onsite were before at of

Lynn Jurich

Yes.

having So the person drones certainly on a customer climb roof. can just having of normally structural also rafters quality attic the so well the doing help roof. – of panel, we’re take would in the I as the do, electrical the think to photos up is as one, on What some check to things the of the that the we internally so avoid

come don’t it, we’ve we’ve have that really photos our customer to the how because that’s interior crews adapted themselves. So from inside, the so gotten

more customer, commitment likely as helping much that of follow through the about process, interesting customer part I from want it. It’s as kind to they’re The this part the to well. that, with of escalation that, their buying the is they’re with too, is just think,

one stick with, So positive so. so it’s change possibly, us, for that could actually been a we

Jeffrey Campbell

very it. helpful. you. Thank appreciate That’s I

Lynn Jurich

Thank you.

Okay.

I think we have our from last question Sophie.

Operator

Yes.

question Your Sophie last KeyBanc. is from Karp from

is open. now Your line

Sophie Karp

have bill and at a could covered. afternoon. Good going to time. us of same point? that taking Good been the I that’s was just utilities how wondering, if you my lot the of Thank disconnects topics getting? question. non-payment for remind for discussion this handle And Hi. billing you have this this suspended consumers Most at are

Thank other wait-and-see like paid, your getting of stance if are old And are there? you they you paid, or taking taking be then the Or you delays, Sort you. billing? people approach? do what’s a In have system are what your words, not getting policy going you’re not towards down? you also to potential disconnecting taking are

Edward Fenster

this So Ed. is Sophie,

we call, the also XXX PowerPoint low. XX, days posted. XX on And shared in our are our actually discussed delinquencies at payment it which mentioning So briefly we’ve first, might a performance mention, and presentation, in XX, I all the by baskets, that six-month I

been hasn’t bill electric us at have eventually, So We And a it pay for really save you’ll the if with challenge the moment. money. your do people not. to utility you’re

utilities. not so, so We bill seeing do do bill we payment good we’re through electric separately, And performance.

by the in us. receive in folks to So And the many people financial directly their crisis ACH XXXX as saw we instances, performance well. that with this well. is from In bills XXXX as pay consistent

Sophie Karp

right. you. Thank All

Lynn Jurich

thank Well, you. Okay.

Operator

Please further Now questions. ahead go I’m now. no showing

Lynn Jurich

talk We’ll safe everyone, joining there. for you you thank Bye-bye. guys again, hope everyone and Well, again stays soon. out us Great. to

Operator

participation you call. today’s wonderful Thank for concludes day. This your a and conference have

all may You disconnect.