Sunrun(RUN) - 2024 Q4 - Annual Report

Solar Energy Capacity and Assets - As of December 31, 2024, the company operated a Networked Solar Energy Capacity of 7,531 megawatts, representing the largest fleet of residential solar energy systems in the United States[30] - Gross Earning Assets as of December 31, 2024, were approximately $17.8 billion[30] Financing and Investment - The company has raised tax equity investment funds since inception to finance the installation of solar energy systems[31] - Federal, state, and local government incentives, including tax credits and rebates, help lower the price charged to customers, promoting solar energy adoption[54] - The Residential Clean Energy Credit is set at 30% for solar facilities placed in service from January 1, 2022, through December 31, 2032[55] - The Commercial ITC is 30% for solar facilities placed in service in 2022 and prior to January 1, 2025, assuming apprenticeship and prevailing wage requirements are met[57] Sales and Customer Engagement - The company offers solar service through three channels: direct-to-consumer, solar partnerships, and strategic partnerships, enhancing market reach and customer acquisition efficiency[32][36] - Customer Agreements typically have an initial term of 20 or 25 years, with options for fixed or escalated pricing, ensuring competitive pricing below utility rates[38] - The company has a multi-channel sales strategy that includes online, retail, and partner networks, which enhances customer engagement and sales volume[42][37] - The company compensates solar integrators, sales partners, and installation partners on a per solar energy system basis, creating a flexible and efficient operational model[35] Competition and Market Position - The company faces competition primarily from traditional utilities and other solar companies, but believes its unique multi-channel approach provides a competitive advantage[46][47] Employee and Workplace Initiatives - As of December 31, 2024, the company had approximately 11,058 full-time employees, with 81% being frontline sales and installation employees[62] - The company has launched a wellbeing strategy in 2024 to enhance employees' mental, physical, social, financial, and career wellbeing[60] - The company is focused on inclusion and diversity, requiring diverse interview panels for all new management-level roles[61] - The company has invested in a career mobility platform and education benefits to develop future leaders[60] - The company has not experienced any work stoppages and none of its employees are covered by collective bargaining agreements[62] Financial Risks - A hypothetical 10% increase in interest rates on variable rate debt facilities would have increased interest expense by$ 14.8 million for the year ended December 31, 2024[420] - The company is exposed to market risks, particularly interest rate changes, which could impact operating expenses and capital investments[420] - The U.S. Treasury is expected to issue final rules on ITC bonus credits in 2025, which may be subject to Congressional Review Act challenges[56] Innovation and Intellectual Property - The company has 61 issued patents and 11 filed patent applications in the United States as of December 31, 2024, indicating a strong focus on innovation[49]