Sunrun, one of the largest companies in residential solar energy in the United States, had revenues of US$XNUMX million in the second quarter of XNUMX, an XNUMX% drop compared to the same period in XNUMX.
Although Sunrun's revenue decreased, net profit in the second quarter of this year was more than US$XNUMX million, a XNUMX% increase compared to the second quarter of XNUMX, in which it recorded a net profit of around US$XNUMX million. Although Sunrun's revenue decreased, net profit in the second quarter of this year was more than US$XNUMX million, a XNUMX% increase compared to the second quarter of XNUMX, in which it recorded a net profit of around US$XNUMX million.
The information was presented by Mary Powell, CEO of Sunrun, during the release of the company's financial statement to shareholders. The executive pointed out that these numbers are the result of the company's strategy to enhance its portfolio of photovoltaic systems with batteries.
Mary also highlighted that in the second quarter, a cash flow of US$XNUMX million was generated. “We continue to execute our growth strategy focused on [battery] storage and higher margins to generate significant cash flow,” she said.
According to Mary, battery installations in the second quarter grew by 152% compared to the previous year, totaling 265 MWh installed in this period alone.
“In the second quarter, we more than doubled new battery installations and achieved an integration rate [of solar energy systems with batteries] of 54%. We now have 1,8 GWh of grid storage capacity, with more than 116 photovoltaic and storage systems installed,” she added.
Source: Sunrun
The executive also highlighted that Sunrun has partnered with Tesla Electric to support the Texas power grid by dispatching energy stored in Sunrun customers' batteries during peak hours.
Rising energy prices and new Net Metering rules boost battery systems
Mary highlighted the growth in electricity tariffs in the USA. According to the executive, the price of electricity across the country almost doubled between May 2023 and May this year.
And at the same time, according to her, Americans are increasingly facing power outages due to wildfires, hurricanes, and major storms. “The average annual number of weather-related outages has increased by almost XNUMX% in the last decade,” she pointed out.
In this scenario, Mary highlighted that photovoltaic and energy storage systems are an economic solution that provides energy security to US consumers.
“The costs of solar modules and batteries have decreased significantly over the last decade, allowing local and affordable energy generation for millions of families across America,” she commented.
During the conference, NEM XNUMX was highlighted, the new version of Net Energy Metering, which brought significant changes to the solar market in California, directly affecting both consumers and companies in the sector.
This version significantly reduced the credits that consumers receive when exporting energy produced from solar panels to the electricity grid. This has made the return on investment in solar systems less attractive, especially without batteries.
In evaluating the storage market, Paul Dickson, CFO of Sunrun, noted that it has been positively impacted. “Overall, we see consumers in all markets expressing interest in batteries, but we do have areas where battery adoption rates are much stronger. In Hawaii and Puerto Rico, for example, we have almost XNUMX% battery adoption. In California, as backup storage, it is XNUMX%,” he commented.
“We see a lot of future opportunities because of this. Our sellers are eager to sell. So as we work through policies, different cities, dealerships, and a good market strategy, that's where the additional growth will come from,” added.
Mary also pointed out that Sunrun is adopting the strategy of storage first. “We sell other products as well, but storage has really been a key focus of ours, not only because of the value it provides to shareholders and customers in terms of resilience, but also because we continue to see it as a future key to unlocking the value of network services, which we continue to mention,” she commented.
“We see significant potential in our retrofit program, going back to our existing customer base. Therefore, again, we hope to see real growth in this segment as well,” she added, highlighting the company's opportunity to increase revenue using its customer base.
Energy security
Recently, Hurricane Beryl made landfall as a storm surge, causing power outages to approximately 3 million homes and businesses in Texas. Some residents waited more than a week for grid power to be restored in their areas, but this was not the reality for Michael Shepard, a resident of Porter, Texas.
“I was without power from the utility for nine days, but everything I needed was working thanks to the Sunrun solar panels and battery. It was essential, and I recommend it to everyone so they can store the sun's energy and be self-sufficient during these power outages,” reported Michael Shepard.
Future projections
During the financial statement presentation, Sunrun released its outlook until the end of 2024. Danny Abajian, the company's CFO, commented that the company is committed to reducing its costs and increasing cash generation, focusing on offering storage systems with batteries and other higher-value products.
“We estimate that Sunrun's installed capacity of storage systems will be between 275 MWh and 300 MWh in the third quarter of 2024, representing growth of approximately 64% compared to the same period last year. For the full year, we are increasing our expectations to 1.030 MWh to 1.100 MWh, an increase of 86% compared to our previous forecast, which was 800 MWh to 1.000 MWh,” Abajian stated.
On the other hand, the CFO noted that the installed capacity of pure solar energy systems (without batteries) declined by around 15% compared to the previous year.
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