How Does Sunrun Make Money?

Sunrun Inc. is a leading provider of residential solar systems and battery energy storage products. Founded in 2007 and based in San Francisco, California, Sunrun has revolutionized the solar energy market, making it accessible to nearly 800,000 customers.

Power Purchase Agreements (PPA)

Sunrun’s primary business model is based on Power Purchase Agreements (PPA). This model is both innovative and customer-friendly. Here’s how it works:

  • Sunrun installs and maintains solar systems on residential properties.
  • Customers purchase electricity generated by these systems at a fixed rate for a term of 20-25 years.
  • There is no upfront cost for the customers, eliminating a significant financial barrier.
  • Sunrun retains ownership of the solar systems, along with the associated benefits and risks.

This arrangement allows customers to enjoy the benefits of solar energy without the hefty initial investment. It also means that Sunrun can capitalize on various incentives, including federal and state tax credits, which are critical for their revenue model.

Leasing Options

In addition to PPAs, Sunrun offers leasing options for its solar systems:

  • Customers make fixed monthly payments for the use of the solar systems installed on their property.
  • Sunrun retains ownership and is responsible for maintenance and repairs.
  • Customers benefit from lower electricity bills and predictable monthly payments.

The leasing model provides flexibility for homeowners who may not want to commit to a long-term PPA but still want to benefit from solar energy.

Sale of Solar Systems

For those who prefer ownership, Sunrun sells solar systems outright. This model includes:

  • Revenue from the sale of solar panels, inverters, and other related equipment.
  • Customers own the systems and can take advantage of federal tax credits and state incentives.
  • Eligible for rebates and incentives depending on the state where the installation is made.

Owning a solar system allows customers to reap the full financial benefits of solar energy, including increased property value and potential savings on their electricity bills.

Battery Storage Solutions

Sunrun has expanded its product offerings to include battery energy storage with its BrightBox product:

  • BrightBox was initially launched in Hawaii and is now available in multiple states.
  • The system provides backup power during outages and helps manage energy use.
  • BrightBox is available as part of both PPA and outright sale models.

Battery storage solutions are becoming increasingly popular as they offer enhanced energy security and greater control over energy consumption.


Strategic partnerships play a significant role in Sunrun’s business model:

  • Costco and The Home Depot: Sunrun markets its solar solutions in these retail giants’ stores, reaching a broader audience.
  • National Grid plc: This partnership helps expand Sunrun’s solar services in new markets.
  • Ford: Sunrun is the official installer of bidirectional charging stations for the F-150 Lightning, integrating solar power with electric vehicle charging.

These partnerships not only boost sales but also enhance Sunrun’s brand visibility and credibility.

Incentives and Tax Credits

Sunrun leverages various incentives and tax credits to bolster its revenue:

  • Federal tax credits for solar installations reduce the overall cost of solar projects.
  • State-level incentives and rebates provide additional financial benefits.
  • Sunrun sells Solar Renewable Energy Certificates (SRECs), which are tradable credits earned for solar energy production.

These incentives are crucial for reducing costs and increasing the attractiveness of solar energy solutions for customers.

Recent Financial Performance

Sunrun’s recent financial performance showcases its growth and market presence:

  • In 2023, Sunrun installed solar systems capable of generating 990 megawatts.
  • The company’s total networked solar capacity reached 6.7 gigawatts.
  • Net subscriber value increased by $2,414 from Q3 to Q4 2023, indicating strong customer value creation.

Sunrun continues to grow its customer base and expand its energy solutions, driving substantial revenue growth.

Table: Sunrun’s Financial Metrics (Q4 2023)

Metric Value
Net Subscriber Value $13,445
Total Revenue $516.6 million
Storage Capacity Installed 219.7 MWh
Solar Energy Capacity Installed 227.1 MW
Net Earning Assets $5.0 billion

Future Outlook

Sunrun’s future looks bright as it continues to innovate and expand its offerings:

  • The company plans to increase its focus on battery storage solutions, aiming for higher-margin products.
  • Partnerships with retailers and automakers will help drive further growth.
  • Continued emphasis on customer service and satisfaction is expected to enhance long-term customer relationships.


Sunrun’s innovative business models, strategic partnerships, and strong financial performance have solidified its position as a leader in the residential solar market. By offering flexible options like PPAs, leases, and outright sales, Sunrun continues to make solar energy accessible and affordable for homeowners across the United States. As the company expands its battery storage solutions and leverages strategic partnerships, it is well-positioned for continued growth and success in the renewable energy sector.

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