Residential solar company Sunrun posted a $63 million net profit in the fourth quarter (Q4) of the financial year (FY) 2022, compared to a net loss of $38.5 million year-over-year (YoY).

The performance was primarily driven by the addition of more solar subscribers during the quarter.

The company added 37,359 customers to its portfolio in Q4, up by 25% YoY. Of the total customer additions, 27,493 were subscriber additions with a net subscriber value of $16,569.

For the October-December quarter, the company’s net subscriber value was the highest ever in history and was up 25% quarter-over-quarter.

The company said that the value growth was driven by the benefits of a 30% tax credit against the 26% benefit earlier, announced under the Inflation Reduction Act passed last August.

Sunrun’s total revenue was $609.2 million, up 40% YoY. The company said the revenue growth was fuelled by 275.4 MW of solar capacity added during the quarter.

The cumulative revenue from the sales of solar systems and products also increased 56% YoY to $366.9 million in the quarter.

Full-year 2022

Sunrun recorded a net profit of $173.3 million for the full-year 2022 against a net loss of $79.4 million YoY due to higher customer and subscriber additions.

The customer additions by the end of FY 2022 increased by 21% to 797,296 compared to 660,311 customers added in 2021.

Of the total, 667,241 were subscriber additions, up 18% from 567,744 subscribers added in 2021.

The company’s revenue increased by 44% YoY to $2.3 billion. The income from customer agreements and incentives jumped by 19% YoY to $983 million.

The company said it has entered into agreements for nearly 200 MW of module supply from a leading domestic producer and supply arrangements for storage solutions produced in the U.S.

Sunrun has installed more than 53,000 residential solar and storage systems across the U.S.

The finalization of the “NEM 3.0”, a new version of the net energy metering policy approved by the California Public Utilities Commission on December 15, 2022, opens a significant market for storage solutions. The company noted that the regulators dropped the proposed discriminatory fixed fees on solar customers. The policy offers variable pricing, substantially reducing the value of energy exported back to the grid during the day, highlighting the benefit of storage solutions.

Last month, Sunrun closed $835 million in non-recourse financings to expand its assets that will help the company maintain the growth trajectory across various segments in its business, including energy storage and diverse energy services.

The company posted a 44% YoY surge in its total revenue at $631.9 million for the third quarter of 2022, primarily driven by customer additions and improved net subscriber value.