Sunrun : Earnings Slides Q1 2024

1Q 2024 Financial Results

May 8, 2024

1Q24 Earnings Presentation

Safe harbor & forward looking statements

This communication contains forward-looking statements related to Sunrun (the "Company") within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the Company's financial and operating guidance and expectations; the Company's business plan, trajectory, expectations, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the calculation of such metrics); the Company's momentum in its business strategies including its ESG efforts, expectations regarding market share, total addressable market, customer value proposition, market penetration, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the growth of the solar industry; the Company's financing activities and expectations to refinance, amend, and/or extend any financing facilities; trends or potential trends within the solar industry, our business, customer base, and market; the Company's ability to derive value from the anticipated benefits of partnerships, new technologies, and pilot programs, including contract renewal and repowering programs; anticipated demand, market acceptance, and market adoption of the Company's offerings, including new products, services, and technologies; the Company's strategy to be a storage-first company; the ability to increase margins based on a shift in product focus; expectations regarding the growth of home electrification, electric vehicles, virtual power plants, and distributed energy resources; the Company's ability to manage suppliers, inventory, and workforce; supply chains and regulatory impacts affecting supply chains; the Company's leadership team and talent development; the legislative and regulatory environment of the solar industry and the potential impacts of proposed, amended, and newly adopted legislation and regulation on the solar industry and our business; the ongoing expectations regarding the Company's storage and energy services businesses and anticipated emissions reductions due to utilization of the Company's solar energy systems; and factors outside of the Company's control such as macroeconomic trends, bank failures, public health emergencies, natural disasters, acts of war, terrorism, geopolitical conflict, or armed conflict / invasion, and the impacts of climate change. These statements are not guarantees of future performance; they reflect the Company's current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. The risks and uncertainties that could cause the Company's results to differ materially from those expressed or implied by such forward-looking statements include: the Company's continued ability to manage costs and compete effectively; the availability of additional financing on acceptable terms; worldwide economic conditions, including slow or negative growth rates and inflation; volatile or rising interest rates; changes in policies and regulations, including net metering, interconnection limits, and fixed fees, or caps and licensing restrictions and the impact of these changes on the solar industry and our business; the Company's ability to attract and retain the Company's business partners; supply chain risks and associated costs; realizing the anticipated benefits of past or future investments, partnerships, strategic transactions, or acquisitions, and integrating those acquisitions; the Company's leadership team and ability to attract and retain key employees; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company's business plan and the Company's ability to effectively manage the Company's growth and labor constraints; the Company's ability to meet the covenants in the Company's investment funds and debt facilities; factors impacting the home electrification and solar industry generally, and such other risks and uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for any reason, except as required by law.

1Q24 Earnings Presentation

02

Q1 OVERVIEW & STRATEGIC PRIORITIES

Mary Powell

CEO

03

Q1 results beat volumes and delivered strong margins, as we executed our storage-first strategy; volume inflection point in 2H

Executing storage-first,margin-focused sustainable growth strategy to drive meaningful Cash Generation

• In Q1, exceeded high-end of both storage and solar capacity installation guidance.
• Reiterating guidance of $200 million to $500 million annualized Cash Generation by Q4. Pro forma Q1 Cash Generation was $6 million.1
• Reiterating full-year storage installation outlook.
• Reducing full-year solar volume outlook by ~77 MW to prioritize storage & profitable growth.
• While near-term solar sales growth in Sunrun's direct business is slightly less than initially forecasted, growing 13% q/q, sales are ramping rapidly into 2Q and an inflection point on installation volumes is expected in 2H24. Sales in California are growing rapidly, increasing >30% q/q.

Leading with best pro-consumer storage offerings, laying the foundation for future monetization opportunities, and continuing to push innovation

• Increased storage attachment rates for new installations in Q1 to 50%, up from a 15% attachment rate in the prior year. In Q1, new storage installations almost tripled compared to the prior year. Fleet of Networked Storage Capacity now at 1.5 Gigawatt hours with more than 102,000 solar and battery systems installed.
• Announced two new record-setting grid services programs: A 16,000 customer "CalReady" virtual power plant program in California and 1,800+ customer "PowerOn Puerto Rico" virtual power plant. These programs support the grid, increase customer value with shared financial benefits, and provide additional recurring cash flow to Sunrun.

Focused on customer experience while driving continued operating efficiency

1. • Enjoyed continued improvement in our customer Net Promoter Score, measured at the time of installation, to approximately 75, another increase compared to last quarter.
   • Our crew labor productivity has improved by 5% compared to the prior year, even as we more than tripled our mix of more complex battery projects. Our productivity installing batteries increased 30% year-over-year.
   • Overall installation-related headcount is down 5 percentage points more than the change in volume. Most importantly, we are installing systems safely and with high quality.
   • Leveraging Artificial Intelligence to dramatically improve efficiency and customer experience.
   • G&A costs have declined slightly year-over-year, even as we accelerate the pace of innovation.
2. Q1 Cash Generation of -$311 million, but was positive $6 million when adjusted for non-recurring timing and transaction-related costs. See slide 18 for our Cash Generation targets and assumptions underpinning our targets.

1Q24 Earnings Presentation

Q1 Key Metric Performance

957,313

Customers

+15% y/y

$50,766

Subscriber Value

+15% y/y

$11,891

Net Subscriber Value

-1% y/y

207.2 Megawatt hours

Storage Capacity Installed in Q1

+192% y/y

177.0 Megawatts

Solar Capacity Installed in Q1

-26% y/y

~50% Storage Attachment rate on new installations, +9% q/q and +234% y/y

6.9 Gigawatts

Networked Solar Capacity

1.5 Gigawatt hours

Networked Storage Capacity

$5.2 billion

Net Earning Assets

See Appendix for glossary of terms

and accompanying notes.

04

We are rapidly transitioning to lead with storage offerings

Storage installations in Q1 grew 192% y/y to 207 Megawatt hours, achieving a 50% attachment rate

➔	Over 207 Megawatt hours of Storage	Storage Attachment Rate on New Installations
	Capacity Installed in Q1, a 192% increase
	compared to the prior year.

• Sunrun has now installed more than 102,000 solar and storage systems representing over 1.5 GWhrs of stored energy capacity.
• Storage attachment rates increased, reaching ~50% of new installations in 1Q.
• We expect attachment rates to remain around this level for the remainder of the year but Storage Capacity Installed to grow rapidly.

Significant benefits of leading with storage for customers, the grid and Sunrun

• Pro-consumeroffering delivers the best economics in markets where rate structures encourage optimizing when energy is consumed or exported to the grid.
• Many storage systems can provide backup power capabilities, allowing households to power through grid outages.
• Substantial fleet with storage lays the foundation for grid service opportunities, which provide valuable dispatchable energy resources for utilities and grid operators and can provide additional financial benefit to our customers that they did not anticipate when subscribing to our offerings.
• Further differentiation compared to smaller solar companies that lack the capabilities to procure storage, design more complicated systems, permit and install complicated solar+storage systems, and manage fleets of energy storage systems.
• In markets where regulations do not require storage and where customers prefer solar-only offerings, we continue to offer our standard solar subscription services.
• Systems with backup storage are significantly accretive to Net Subscriber Values, adding several thousand dollars
• We expect Sunrun's growing fleet of energy resources will help address the increased electricity needs from rapid growth in artificial intelligence (AI) and data centers generally.

1Q24 Earnings Presentation

05

Total Value Generated expected to grow by over 10% in 2024 driven by higher Subscriber Values & lower input costs; volume inflection point in 2H

• Installations, which lag sales, now reflect earlier market optimization decisions & margin discipline; installations expected to grow from 1Q24 levels.
• Achieved >13% sequential sales growth in Sunrun's direct business (CA growing >30% sequentially, but down significantly year over year, and non-CA growing single-digits sequentially). Sales are expected to continue to grow rapidly into 2Q resulting in an inflection point of installation volumes in 2H. California demand continues to track well above rest of country.
• Increasing mix of higher-value storage business to drive strong value growth, with Total Value Generated expected to grow by over 10% in 2024.

2023 Subscriber Value: $46,503	Anticipated 2024 Subscriber Value: ~$53,000
Greater than 10% growth in Subscriber Value, owing to shift to higher-value offerings
CA regulatory change resulted in demand		Forecasting strong sales
	growth q/q resulting in inflection point in
pull-in with gradual rebound
Achieved >13%	installation volumes in 2H24
	sales growth
	q/q in Q1

10% sequential solar installation growth expected

		4Q22	1Q23	2Q23	3Q23	4Q23	1Q24	2Q24E	3Q24E	4Q24E
		Sunrun Direct Sales		Subscriber Value	Exited Market Installations	Affiliate Partner Installations	Sunrun Direct Installations1
See Appendix for glossary of terms and accompanying notes. Chart depicts approximate volumes and changes.
2Q24 reflects midpoint of guidance and 3Q24 and 4Q24 reflects management's current view on pacing throughout the remainder of the year
(1) Excludes exited & deprioritized markets (Arizona)
						1Q24 Earnings Presentation			06

We Love Our People

Top Teams in Q1

Based on Commitment to Safety, Storage Attachment Rates, Quality and Customer Experience

Top Sales Team	Top Installation Team
Direct-to-Home	Led by Foreman Jonathan M.
Houston, TX	Houston, TX

1Q24 Earnings Presentation

FINANCIAL PERFORMANCE & OUTLOOK

Danny Abajian

CFO

08

Sunrun is Building a Base of Customers with Recurring Revenue and Multi-Decade Relationships

Annual Recurring Revenue from Subscribers increases to $1.4 billion with an Average Remaining Contract Life of 17.9 years

Q1 Volume Performance

24,038

Customer Additions

-26%year-over-year

207 MWh

Storage Capacity Installed

+192% year-over-year

177 MW

Solar Energy Capacity Installed

-26%year-over-year

50%

Battery Attachment Rate

an increase from 15% in Q1 2023

Q1 Unit Economics & Value Creation

$50,776

Subscriber Value

+15% year-over-year

Customer Base as of March 31, 2024

957,313

Customers

+15% year-over-year

See Appendix for glossary of terms and accompanying notes

$38,885

Creation Cost

+21% year-over-year

$5.2 Billion

Net Earning Assets

Including $783 million of Total Cash

$11,891

Net Subscriber Value

-1%year-over-year

1,532 MWh

Networked Storage Capacity

$262 Million

Total Value Generated

-13%year-over-year

6,866 MW

Networked Solar Energy Capacity

1Q24 Earnings Presentation

09

Net Subscriber Value of $11.9k in Q1; additional hardware cost deflation & ITC adder value expected

• 22,058 Subscriber Additions with Net Subscriber Value of $11,891 using a 6% discount rate, resulting in Total Value Generated of $262 million in Q1.
• These figures include the benefits from neither the domestic content ITC adder nor current equipment purchase prices. Equipment costs are expected to decline as higher cost materials flow through inventory from prior procurement activities.
• We present metrics using a 6% discount rate to enable ease of comparison across periods, in addition to providing a sensitivity table. We currently see an asset-level cost of capital of approximately 7.6%. Pro-forma for a 7.6% discount rate, Subscriber Value was $45,477, leading to a Net Subscriber Value of $6,593 and Total Value Generated of $145 million.

	$50,776
	Subscriber Value
PV6%	$3,917
Renewal
PV6%	per
subscriber
(O&M costs)
PV6%
Customer payments
PV6%	$46,858
per
(O&M costs)
subscriber
PV6%
Tax equity
Upfront
State rebates & prepayments

Subscriber

Value

Q1 average subscriber system size was 7.5 KWs

See Appendix for glossary of terms and accompanying notes.

$38,885

Creation Cost

Creation

Cost

Upfront

Installation costs

Upfront

S&M

Upfront

G&A

Upfront

(Platform Services Margin)

$11,891

Net Subscriber Value

$3,917 renewal

$7,973 contracted

PV6%

Net Subscriber

Value

Current capital costs are ~7.6% for "full stack" debt raised against the assets we originated in the quarter. This reflects observed debt capital costs for senior debt and subordinated debt and is calculated as follows:

4.15%	Average 7-yr treasury rate
	during Q1
+2.33%	Senior debt credit spread

• 6.48% Senior debt rate

+1.1% Impact on average when incorporating subordinated debt as part of capital stack

= 7.6% Weighted average

$6,593

Net Subscriber

Value @ 7.6%

$2,606 renewal
$3,987 contracted	PV7.6%

Net Subscriber Value

pro-forma at 7.6%

discount rate

1Q24 Earnings Presentation

010