Sunrun : Investor Presentation

Sunrun Overview

Sunrun is powering a customer-led revolution to clean, affordable and locally-generated energy, and doing it at massive scale and rapid pace.

Formed in 2007, Sunrun pioneered residential solar energy subscription model. We provide a solar energy service with fixed pricing under 20- or 25-year subscription agreements that generate recurring, contracted revenue for multiple decades. We have sold our solar service in 22 states, DC & Puerto Rico.

Sunrun has a leading customer acquisition platform, customer experience capabilities, and extensive financing experience, all of which drive significant barriers to entry and the opportunity for high incremental returns.

933,000 Customers

1. Gigawatts Networked Solar Energy Capacity

1. Gigawatt hours Networked Storage Capacity $1.3 Billion Annual Recurring Revenue

Our Compelling Value Proposition

VALUE TO ➔ The majority of customers save 5-45% in the first

year.(1) We have delivered more than $1 billion in

• Storage provides premium power, including backup capabilities to enable customers to power through storms.

Operating scale and strong network effects provide significant competitive advantages

A disciplined strategy and long track record of growth has resulted in a leading market share position(1)

With approximately 15% market share across the entire residential solar market, >60% market share(2) of subscriptions ('TPO' or solar leases & PPAs)

0.5%

$230 billion

annual spend(2)

And yet remains <1% of total U.S. residential electricity market(3)

The cost of electricity has increased 3% per year on average from 2005 through 2022(1)

Declining wholesale rates disguise the cost of capex

• In 2022, the major U.S. utilities spent over $127 billion in capital investments, exceeding depreciation expense by 2.2x(3).
• More than 70% of America's transmission lines and large power transformers are at least 25 years old, and utilities will need to spend an exorbitant $2.2 trillion on infrastructure upgrades during the next 20 years in order to keep our system up and running. These costs will ultimately be passed to consumers.
• The year-over-year inflation rate in electricity services has averaged 11% in 2023(4). In December 2023, CPUC approved PG&E's rate increase of 19.6%(5) in California, effective January 1, 2024.
• With the expected capex trends and stagnant demand, even if wholesale prices fall, there could be potential increase in retail rates.(6)

Cost of Utility Energy Has Been Increasing(1)

Utility Spending Accelerates Trend(2)

Capital Expenditures ($ billions)

The costs of solar modules and batteries have declined significantly over the last ten years and market research predicts that these trends will continue.(1)(2)

Cost of solar modules - 90%

Cost of batteries - 87%

Market researchers forecast the cost of installed solar panels will continue to decline long-term by 34% while the cost of batteries declines 64% over the next 10 years.(2)

1. Historic solar costs: Data prior to 2020 uses Bloomberg New Energy Finance Survey Multicrystalline Silicon Module Overall Average Spot Price; Starting in 2020, data source is PV Infolink Standard Monocrystalline Silicon Module Price from Bloomberg; Historic battery cost estimates according to Bloomberg New Energy Finance Annual Battery Survey (December 2022).
2. Projected Cost of Panels and Batteries: Bloomberg New Energy Outlook 2019.

Sunrun's backup storage offering is a clean, reliable and long-term solution for blackouts. It can backup critical circuits and recharge when the sun shines, so customers can power through even multi-day power outages.

In many places, customers can get solar and storage for less than or equal to what they pay for electricity today.

The grid is increasingly unreliable and battery storage is a solution

From devastating wildfires and forced outages in California to hurricanes and major storms across the East Coast, people are facing more outages every year.

Power outages affect millions(1)

In December 2022, frigid winds from winter storm Elliott knocked out power for more than 1.6 million homes and businesses across 19 states.

In August 2020, a heatwave and unexpected centralized fossil fuel power plant failures crippled California's power grid, leading to rolling blackouts affecting 2 million people.

In August 2020, nearly 14 million people across the East Coast lost power in Hurricane Isaias.

In April 2020, 9.4 million people lost power in North Carolina, South Carolina, Texas and Alabama due to a major storm.

In October 2019, PG&E shut off power to more than 3.4 million people in California to prevent their lines from sparking destructive wildfires.

1. Power Outage U.S. Major Events, Bloomberg, August 2020. California Braces for More Blackouts as Heat Wave Persists