Sunrun’s Q1 Loss Widens to $335 Million on Higher Overall Expenses
The company's customer base grew 20% in the quarter
United States-based residential solar, battery storage, and energy services company Sunrun reported a net loss of $335.8 million during the first quarter (Q1) of the financial year (FY) 2023, compared to a loss of $156.5 million YoY.
The increase in loss is attributable to an overall rise in cost. The total cost of revenue rose 23%, while the company also saw total operating expenses go up 21% YoY in the first quarter.
The company’s revenue rose 19% YoY to $589.85 million in the January-March period.
Sunrun’s customer base grew by 20% YoY in Q1. It added 32,413 new customers, of which 25,154 were subscribers during the quarter. Sunrun had 829,709 customers, including 692,395 subscribers, at the end of March.
Nearly 239.8 MW of solar energy capacity was installed during the quarter, with 187.8 MW installed for subscribers. The networked solar energy capacity was 5,907 MW, with 4,952 MW allocated for subscribers as of March 31.
The solar systems Sunrun deployed during the quarter are expected to offset the emission of 5.1 million metric tons of CO2 over the next thirty years. Over the last twelve months, Sunrun’s systems are estimated to have offset 3.2 million metric tons of CO2.
“The Sunrun team is focused on crushing it on the fundamentals, driving strong, profitable, and sustainable growth. Demand for clean, affordable energy from Sunrun continued to accelerate in the first quarter, with over 30% growth in sales. The strength of Sunrun’s energy subscription offering and leading market presence allowed us to gain significant market share. These trends are set to accelerate in the quarters ahead,” said Mary Powell, Sunrun’s Chief Executive Officer.
“Comparing the speed and scale of our installed solar capacity in one quarter to utility solar developments is stunning. The average utility solar project is 5 MW and takes at least 6 to 12 months to build, compared to Sunrun’s installed capacity of 240 MW in one quarter. We are on track to add over 1 GW this year on rooftops,” she added.
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.
In January this year, 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.