Exhibit 99.1
sunrun3q2017image1.gif

Sunrun Reports Third Quarter 2017 Financial Results
Unlevered NPV of $1.15 per watt in Q3 2017, the highest in the company’s history
Net Present Value of $93 million created in Q3 2017, an increase of 21% Year-Over-Year
Net Earning Assets of $1.2 billion, an increase of 24% Year-Over-Year

SAN FRANCISCO, November 8, 2017, Sunrun (Nasdaq: RUN), the nation’s largest dedicated provider of residential solar, storage and energy services, today announced financial results for the third quarter ended September 30, 2017.

Third Quarter 2017 Operating Highlights
•
Total deployments of 90 MW, an increase of 12% year-over-year and exceeding the company’s guidance of 88 MWs
•
Net Present Value (NPV) of $93 million created, an increase of 21% year-over-year
•
Unlevered NPV of $1.15 per watt, the highest level in the company’s history
•
Cumulative MW deployed of 1,117 MW, an increase of 39% year-over-year
•
Net Earning Assets of $1.2 billion, reflecting a 24% increase year-over-year
“Our positive momentum continues in Q3. We are reiterating our full-year guidance of 15% growth in volumes while increasing our annual NPV guidance to 40% growth,” said Lynn Jurich, Sunrun’s chief executive officer. “I am proud of the company’s performance and industry leadership. We have brought clean, affordable energy to more than 160,000 American families and provided job opportunities in hundreds of communities across the country. We have delivered our highest unit economics in the company’s history and increased our cash balance, even while continuing to invest in new markets, BrightBox and grid services.”
Key Operating Metrics
In the third quarter of 2017, MW deployed increased to 90 MW from 80 MW in the third quarter of 2016, a 12% year-over-year increase.
In the third quarter of 2017, MW booked were 93 MW, an increase of 12% from the third quarter of 2016.
Creation Cost per watt was $3.34 in the third quarter of 2017 compared to $3.36 in the third quarter of 2016, an improvement of $0.02 year-over-year. Project Value per watt was $4.49 in the third quarter of 2017, an increase of $0.06 compared to the third quarter of 2016.
NPV created in the third quarter of 2017 was $93 million, a 21% increase from $76 million in the third quarter of 2016. Unlevered NPV per watt in the third quarter of 2017 was $1.15 compared to $1.07 in the prior year, reflecting the highest level in the company’s history.
Gross Earning Assets as of September 30, 2017 were $2.1 billion, up $399 million, or 24% from the prior year. Net Earning Assets as of September 30, 2017 were $1.2 billion, up $232 million, also reflecting a 24% increase from the prior year.
Financing Activities    
As of November 8, 2017, closed transactions and executed term sheets provide us expected tax equity and back-leverage capacity well into Q2 2018.



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Third Quarter 2017 GAAP Results
Operating leases and incentives revenue grew 35% year-over-year to $58.5 million. Solar energy systems and product sales increased 20% year-over-year to $82.8 million. Total revenue grew to $141.3 million in the third quarter of 2017, up $29.3 million, or 26% from the third quarter of 2016.
Total cost of revenue was $118.8 million, an increase of 21% year-over-year. Total operating expenses were $189.0 million, an increase of 16% year-over-year.
Net income available to common stockholders was $27.8 million in the third quarter of 2017, an increase of 65% year-over-year.
Diluted net earnings per share available to common shareholders was $0.25 per share.
Guidance for Q4 and Full Year 2017
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
In Q4, we expect to deploy approximately 87 MW. We continue to expect to deploy 325 MWs for the full year 2017, reflecting 15% year-over-year growth.
Conference Call Information
Sunrun is hosting a conference call for analysts and investors to discuss its third quarter 2017 results and outlook for its fourth quarter 2017 at 2:00 p.m. Pacific Time today, November 8, 2017. A live audio webcast of the conference call along with supplemental financial information will be accessible via the “Investor Relations” section of the Company’s website at http://investors.sunrun.com. The conference call can also be accessed live over the phone by dialing (877) 470-1078 (domestic) or (615) 247-0087 (international) using ID #4288429. A replay will be available following the call via the Sunrun Investor Relations website or for one week at the following numbers (855) 859-2056 (domestic) or (404) 537-3406 (international) using ID #4288429.
About Sunrun    
Sunrun (Nasdaq:RUN) is the nation’s largest dedicated residential solar, storage and energy services company with a mission to create a planet run by the sun. Since establishing the solar as a service model in 2007, Sunrun leads the industry in providing clean energy to homeowners with little to no upfront cost and at a savings to traditional electricity. The company designs, installs, finances, insures, monitors and maintains the systems, while families receive predictable pricing for 20 years or more. The company also offers Sunrun BrightBoxTM solar power generation with smart inverter technology and home battery storage. For more information, please visit: www.sunrun.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating guidance, operational and financial results such as growth, value creation, MW bookings and deployments, gross and net earning assets, project value, creation costs and NPV, and the assumptions related to the calculation of the foregoing metrics, as well as our expectations regarding our growth and financing capacity. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to: the availability of additional financing on acceptable terms; changes in the retail prices of traditional utility generated electricity; changes in policies and regulations including net metering and interconnection limits or caps; the availability of rebates, tax credits and other incentives; the availability of solar panels and other raw materials; our limited operating history, particularly as a new public company; our ability to attract and retain our relationships with third parties, including our solar partners; our ability to meet the covenants in our investment funds and debt facilities; and such other risks identified in the reports that we file with the U.S. Securities and Exchange Commission, or SEC, from

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time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.



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Consolidated Balance Sheets
(In Thousands)

 
 
September 30, 2017
 
December 31, 2016
 
 
 
 
 
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash
 
$
216,142

 
$
206,364

Restricted cash
 
14,036

 
11,882

Accounts receivable, net
 
73,031

 
60,258

State tax credits receivable
 
11,085

 
13,713

Inventories
 
63,323

 
67,326

Prepaid expenses and other current assets
 
13,907

 
9,802

Total current assets
 
391,524

 
369,345

Restricted cash
 
5,952

 
6,117

Solar energy systems, net
 
3,147,383

 
2,629,366

Property and equipment, net
 
38,819

 
48,471

Intangible assets, net
 
15,345

 
18,499

Goodwill
 
87,543

 
87,543

Prepaid tax asset
 
—

 
378,541

Other assets
 
31,187

 
34,936

Total assets
 
$
3,717,753

 
$
3,572,818

Liabilities and total equity
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
108,689

 
$
66,018

Distributions payable to noncontrolling interests and redeemable noncontrolling interests
 
14,785

 
10,654

Accrued expenses and other liabilities
 
54,533

 
59,261

Deferred revenue, current portion
 
74,793

 
70,849

Deferred grants, current portion
 
7,827

 
8,011

Capital lease obligations, current portion
 
7,883

 
10,015

Recourse debt, current portion
 
247,000

 
—

Non-recourse debt, current portion
 
22,538

 
14,153

Lease pass-through financing obligation, current portion
 
6,043

 
5,823

Total current liabilities
 
544,091

 
244,784

Deferred revenue, net of current portion
 
581,517

 
583,401

Deferred grants, net of current portion
 
231,478

 
226,893

Capital lease obligations, net of current portion
 
7,060

 
12,965

Recourse debt, net of current portion
 
—

 
244,000

Non-recourse debt, net of current portion
 
846,257

 
639,870

Lease pass-through financing obligation, net of current portion
 
137,997

 
137,958

Other liabilities
 
10,277

 
5,457

Deferred tax liabilities
 
68,975

 
415,397

Total liabilities
 
2,427,652

 
2,510,725

Redeemable noncontrolling interests
 
176,460

 
137,907

Total stockholders’ equity
 
753,936

 
672,961

Noncontrolling interests
 
359,705

 
251,225

Total equity
 
1,113,641

 
924,186

Total liabilities, redeemable noncontrolling interests and total equity
 
$
3,717,753

 
$
3,572,818



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Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Revenue:
 
 
 
 
 
 
 
 
Operating leases and incentives
 
$
58,462

 
$
43,150

 
$
171,897

 
$
123,084

Solar energy systems and product sales
 
82,829

 
68,883

 
211,359

 
210,230

Total revenue
 
141,291

 
112,033

 
383,256

 
333,314

Operating expenses:
 
 
 
 
 
 
 
 
Cost of operating leases and incentives
 
49,232

 
40,770

 
140,682

 
117,478

Cost of solar energy systems and product sales
 
69,588

 
57,264

 
179,957

 
176,376

Sales and marketing
 
37,298

 
40,192

 
101,758

 
127,096

Research and development
 
3,936

 
2,458

 
10,642

 
7,294

General and administrative
 
27,925

 
21,331

 
77,776

 
68,193

Amortization of intangible assets
 
1,052

 
1,051

 
3,154

 
3,154

Total operating expenses
 
189,031

 
163,066

 
513,969

 
499,591

Loss from operations
 
(47,740
)
 
(51,033
)
 
(130,713
)
 
(166,277
)
Interest expense, net
 
17,707

 
13,957

 
49,586

 
38,535

Other expenses (income), net
 
(94
)
 
42

 
589

 
(460
)
Loss before income taxes
 
(65,353
)
 
(65,032
)
 
(180,888
)
 
(204,352
)
Income tax expense
 
14,834

 
9,936

 
37,625

 
13,146

Net loss
 
(80,187
)
 
(74,968
)
 
(218,513
)
 
(217,498
)
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
 
(107,969
)
 
(91,846
)
 
(284,144
)
 
(280,153
)
Net income available to common stockholders
 
$
27,782

 
$
16,878

 
$
65,631

 
$
62,655

Net income per share available to common stockholders
 
 
 
 
 
 
 
 
Basic
 
$
0.26

 
$
0.16

 
$
0.62

 
$
0.61

Diluted
 
$
0.25

 
$
0.16

 
$
0.61

 
$
0.60

Weighted average shares used to compute net income per share available to common stockholders
 
 
 
 
 
 
 
 
Basic
 
105,783

 
102,707

 
105,060

 
101,988

Diluted
 
109,598

 
105,092

 
107,893

 
104,698




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Consolidated Statements of Cash Flows
(In Thousands)

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Operating activities:
 
 
 
 
 
 
 
 
Net loss
 
$
(80,187
)
 
$
(74,968
)
 
$
(218,513
)
 
$
(217,498
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 

 
 

Depreciation and amortization, net of amortization of deferred grants
 
34,392

 
27,006

 
99,674

 
73,570

Deferred income taxes
 
14,836

 
9,936

 
37,624

 
13,146

Stock-based compensation expense
 
5,105

 
5,379

 
16,494

 
14,026

Noncash interest expense
 
3,663

 
2,689

 
13,144

 
8,024

Interest on lease pass-through financing obligations
 
3,014

 
3,032

 
8,963

 
9,051

Reduction in lease pass-through financing obligations
 
(4,559
)
 
(4,658
)
 
(13,721
)
 
(14,149
)
Other noncash losses and expenses
 
2,259

 
1,230

 
6,849

 
4,154

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Accounts receivable
 
(9,748
)
 
5,299

 
(13,963
)
 
9,183

Inventories
 
(10,579
)
 
2,266

 
4,003

 
(14,573
)
Prepaid and other assets
 
(766
)
 
(2,375
)
 
(3,620
)
 
(5,135
)
Accounts payable
 
29,033

 
(12,331
)
 
31,669

 
(22,220
)
Accrued expenses and other liabilities
 
(84
)
 
4,796

 
(11,367
)
 
8,014

Deferred revenue
 
7,912

 
3,881

 
3,598

 
7,176

Net cash used in operating activities
 
(5,709
)
 
(28,818
)
 
(39,166
)
 
(127,231
)
Investing activities:
 
 
 
 
 
 

 
 

Payments for the costs of solar energy systems, leased and to be leased
 
(226,462
)
 
(197,823
)
 
(583,188
)
 
(530,295
)
Purchases of property and equipment
 
(1,492
)
 
(2,189
)
 
(5,956
)
 
(10,397
)
Business acquisition, net of cash acquired
 
—

 
—

 
—

 
(5,000
)
Net cash used in investing activities
 
(227,954
)
 
(200,012
)
 
(589,144
)
 
(545,692
)
Financing activities:
 
 
 
 
 
 

 
 

Proceeds from state tax credits, net of recapture
 
(386
)
 
(42
)
 
12,785

 
9,081

Proceeds from issuance of recourse debt
 
34,000

 
97,000

 
125,400

 
354,400

Repayment of recourse debt
 
(34,000
)
 
(95,400
)
 
(122,400
)
 
(307,400
)
Proceeds from issuance of non-recourse debt
 
94,561

 
60,074

 
294,086

 
249,820

Repayment of non-recourse debt
 
(7,971
)
 
(1,570
)
 
(92,801
)
 
(18,113
)
Payment of debt fees
 
(1,377
)
 
(1,337
)
 
(6,332
)
 
(13,614
)
Proceeds from lease pass-through financing obligations
 
1,577

 
1,437

 
4,639

 
14,242

Contributions received from noncontrolling interests and redeemable noncontrolling interests
 
167,777

 
182,586

 
471,322

 
422,207

Distributions paid to noncontrolling interests and redeemable noncontrolling interests
 
(14,126
)
 
(9,492
)
 
(38,761
)
 
(27,749
)
(Payments) proceeds from exercises of stock options, net of withholding taxes on restricted stock units and issuance of shares in connection with the Employee Stock Purchase Plan
 
218

 
1,088

 
(207
)
 
4,704

Offering costs paid related to initial public offering
 
—

 
—

 
—

 
(437
)
Payment of capital lease obligations
 
(2,323
)
 
(3,252
)
 
(7,585
)
 
(9,668
)
Change in restricted cash
 
534

 
(2,005
)
 
(2,058
)
 
(937
)
Net cash provided by financing activities
 
238,484

 
229,087

 
638,088

 
676,536

 
 
 
 
 
 
 
 
 
Net change in cash
 
4,821

 
257

 
9,778

 
3,613

Cash, beginning of period
 
211,321

 
207,220

 
206,364

 
203,864

Cash, end of period
 
$
216,142

 
$
207,477

 
$
216,142

 
$
207,477


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Key Operating Metrics and Financial Metrics
 
 
 
Three Months Ended September 30,
 
 
2017
 
2016
MW Booked (during the period)(1)
 
93

 
83

MW Deployed (during the period)
 
90

 
80

Cumulative MW Deployed (end of period)
 
1,117

 
801

Gross Earning Assets under Energy Contract (end of period)(in millions)
 
$
1,359

 
$
1,108

Gross Earning Assets Value of Purchase or Renewal (end of period)(in millions)
 
$
709

 
$
561

Gross Earning Assets (end of period)(in millions)(2)
 
$
2,068

 
$
1,669

 Net Earning Assets (end of period)(in millions)(2)
 
$
1,186

 
$
954

 
 
 
 
 


 
Three Months Ended September 30,
 
 
2017
 
2016
Project Value, Contracted Portion (per watt)
 
$
3.92

 
$
3.84

Project Value, Renewal Portion (per watt)
 
$
0.57

 
$
0.59

Total Project Value (per watt)
 
$
4.49

 
$
4.43

Creation Cost (per watt)(3)
 
$
3.34

 
$
3.36

Unlevered NPV (per watt)(2)
 
$
1.15

 
$
1.07

NPV (in millions)(2)
 
$
93

 
$
76


(1)
The presentation of MW Booked for periods prior to December 31, 2016 reflects changes made to the calculation methodology as further described in our Annual Report on Form 10-K filed with the SEC on March 8, 2017.

(2)
Numbers may not sum due to rounding.

(3)
The presentation of Creation Cost for periods prior to December 31, 2016 reflects changes made to the calculation methodology as further described in our Fourth Quarter 2016 earnings presentation available on our investor relations website.














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Definitions
Creation Cost includes (i) certain installation and general and administrative costs after subtracting the gross margin on solar energy systems and product sales divided by watts deployed during the measurement period and (ii) certain sales and marketing expenses under new Customer Agreements, net of cancellations during the period divided by the related watts deployed.
Customers refers to all residential homeowners (i) who have executed a Customer Agreement or cash sales agreement with us and (ii) for whom we have internal confirmation that the applicable solar energy system has reached notice to proceed or “NTP”, net of cancellations.
Customer Agreements refers to, collectively, solar power purchase agreements and solar leases.
Gross Earning Assets represents the net cash flows (discounted at 6%) we expect to receive during the initial 20-year term of our Customer Agreements for systems that have been deployed as of the measurement date, plus a discounted estimate of the value of the Customer Agreement renewal term or solar energy system purchase at the end of the initial term. Gross Earning Assets excludes estimated cash distributions to investors in consolidated joint ventures and estimated operating, maintenance and administrative expenses for systems deployed as of the measurement date. In calculating Gross Earning Assets, we deduct estimated cash distributions to our cash equity financing providers. In calculating Gross Earning Assets, we do not deduct customer payments we are obligated to pass through to investors in lease pass-throughs as these amounts are reflected on our balance sheet as long-term and short-term lease pass-through obligations, similar to the way that debt obligations are presented. In determining our finance strategy, we use lease pass-throughs and long-term debt in an equivalent fashion as the schedule of payments of distributions to lease pass-through investors is more similar to the payment of interest to lenders than the internal rates of return (IRRs) paid to investors in other tax equity structures.
Gross Earning Assets Under Energy Contract represents the net cash flows during the initial (typically 20 year) term of our Customer Agreements (less substantially all value from SRECs prior to July 1, 2015), for systems deployed as of the measurement date.
Gross Earning Assets Value of Purchase or Renewal is the forecasted net present value we would receive upon or following the expiration of the initial Customer Agreement term (either in the form of cash payments during any applicable renewal period or a system purchase at the end of the initial term), for systems deployed as of the measurement date.
MW Booked represents the aggregate megawatt production capacity of our solar energy systems, whether sold directly to customers or subject to an executed Customer Agreement, for which we have confirmation that the systems have reached NTP, net of cancellations.
MW Deployed represents the aggregate megawatt production capacity of our solar energy systems, whether sold directly to customers or subject to executed Customer Agreements, for which we have (i) confirmation that the systems are installed on the roof, subject to final inspection or (ii) in the case of certain system installations by our partners, accrued at least 80% of the expected project cost.
Net Earning Assets represents Gross Earning Assets less both project level debt and Lease Pass-Through Financing Obligation, as of the same measurement date. Because estimated cash distributions to our cash equity financing partners are deducted from Gross Earning Assets, a proportional share of the corresponding project level debt is deducted from Net Earning Assets.
NPV equals Unlevered NPV multiplied by leased megawatts deployed in period.
NTP or Notice to Proceed refers to our internal confirmation that a solar energy system has met our installation requirements for size, equipment and design.
Project Value represents the value of upfront and future payments by customers, the benefits received from utility and state incentives, as well as the present value of net proceeds derived through investment funds. Specifically, Project Value

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is calculated as the sum of the following items (all measured on a per-watt basis with respect to megawatts deployed under Customer Agreements during the period): (i) estimated Gross Earning Assets, (ii) utility or upfront state incentives, (iii) upfront payments from customers for deposits and partial or full prepayments of amounts otherwise due under Customer Agreements and which are not already included in Gross Earning Assets and (iv) finance proceeds from tax equity investors, excluding cash true-up payments or the value of asset contributions in lieu of cash true-up payments made to investors. Project Value includes contracted SRECs for all periods after July 1, 2015.
Unlevered NPV equals the difference between Project Value and estimated Creation Cost on a per watt basis.

Investor Relations Contact:
Patrick Jobin
Vice President, Finance & Investor Relations
investors@sunrun.com
(415) 638-4007

Media Contact:

Georgia Dempsey
Director of Corporate Communications
press@sunrun.com
(415) 518-9418



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