Exhibit 99.1
sunrun1q2018image1.jpg

Sunrun Reports Fourth Quarter and Full Year 2017 Financial Results
Unlevered NPV of $1.22 per watt in Q4 2017, the highest in the company’s history
Total deployments of 323 MWs in 2017, an increase of 15% year-over-year
Net Earning Assets of $1.2 billion, an increase of 16% year-over-year
Customers now exceed 180,000, an increase of 34% year-over-year
Achieved structural cash flow positive milestone in 2017
SAN FRANCISCO, March 6, 2018, Sunrun (Nasdaq: RUN), the nation’s largest dedicated provider of residential solar, storage and energy services, today announced financial results for the fourth quarter and full year ended December 31, 2017.
Full Year 2017 Operating Highlights
•
Total deployments of 323 MW, an increase of 15% year-over-year
•
Net Present Value of $314 million created, an increase of 47% year-over-year
•
Unlevered NPV of $1.09 per watt, an increase of 25% year-over-year
•
Cumulative MW deployed of 1,202 MW, an increase of 37% year-over-year
•
Net Earning Assets of $1.2 billion, reflecting a 16% increase year-over-year
•
Customers now exceed 180,000, an increase of 34% year-over-year
•
Achieved structural cash flow positive milestone in 2017

Fourth Quarter 2017 Operating Highlights
•
Unlevered NPV of $1.22 per watt, the highest level in the company’s history
•
Total deployments of 85 MW, an increase of 10% year-over-year
•
Net Present Value of $91 million created, an increase of 35% year-over-year

“Sunrun is entering 2018 as the residential market leader,” said Lynn Jurich, Sunrun Chief Executive Officer and co-founder. “We achieved our highest unit margins and turned structurally cash flow positive. We expect to deliver an even stronger performance in 2018.” Jurich added, “Last year households experienced an unprecedented level of power outages driving demand for a more reliable electricity solution. Sunrun is meeting this need with our Brightbox solar and home battery service which is now available in six states and provides affordable electricity with backup power."

Key Operating Metrics
In the fourth quarter of 2017, MW deployed increased to 85 MW from 77 MW in the fourth quarter of 2016, a 10% year-over-year increase.
In the full year 2017, MW deployed increased to 323 MW from 282 MW in the full year 2016, a 15% year-over-year increase.
In the fourth quarter of 2017, MW booked were 83 MW, an increase of 15% from the fourth quarter of 2016.
Creation Cost per watt was $3.30 in the fourth quarter of 2017 compared to $3.41 in the fourth quarter of 2016, an improvement of $0.11 year-over-year. Project Value per watt was $4.52 in the fourth quarter of 2017, an increase of $0.11 compared to the fourth quarter of 2016.
NPV created in the fourth quarter of 2017 was $91 million, a 35% increase from $67 million in the fourth quarter of 2016. Unlevered NPV per watt in the fourth quarter of 2017 was $1.22, reflecting the highest level in the company’s history, compared to $1.00 in the prior year.
Gross Earning Assets as of December 31, 2017 were $2.2 billion, up $404 million, or 22% from the prior year. Net Earning Assets as of December 31, 2017 were $1.2 billion, up $165 million, reflecting a 16% increase from the prior year.

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Exhibit 99.1
sunrun1q2018image1.jpg

Financing Activities    
As of March 6, 2018, closed transactions and executed term sheets provide us expected tax equity and back-leverage capacity into the third quarter of 2018.
Fourth Quarter 2017 GAAP Results
Operating leases and incentives revenue grew 31% year-over-year to $59.5 million. Solar energy systems and product sales increased 15% year-over-year to $86.9 million. Total revenue grew to $146.4 million in the fourth quarter of 2017, up $25.9 million, or 21% from the fourth quarter of 2016.
Total cost of revenue was $127.4 million, an increase of 21% year-over-year. Total operating expenses were $197.9 million, an increase of 17% year-over-year.
Net income available to common stockholders was $58.9 million in the fourth quarter of 2017, an increase of 103% year-over-year.
Diluted net earnings per share available to common stockholders was $0.54 per share. Net income available to common stockholders benefited from a one-time tax item of approximately $31.9 million related to recent changes to the U.S. tax code, or a $0.29 benefit per diluted share.
Full Year 2017 GAAP Results
Total revenue grew to $529.7 million in the full year 2017, up $75.8 million, or 17% from 2016. Operating leases and incentives revenue grew 37% year-over-year to $231.4 million. Solar energy systems and product sales grew 4% year-over-year to $298.3 million.
Total cost of revenue was $448.1 million, an increase of 12% year-over-year. Total operating expenses were $711.9 million, an increase of 6% year-over-year.
Net income available to common stockholders was $124.5 million in the full year 2017, compared to net income available to common stockholders of $91.7 million in 2016.
Diluted net earnings per share available to common shareholders was $1.15 per share.
Guidance for Full Year 2018
The following statement is based on current expectations. This statement is forward-looking and actual results may differ materially.
For the full year 2018, we expect deployments to grow 15% year-over-year.
Conference Call Information
Sunrun is hosting a conference call for analysts and investors to discuss its fourth quarter and full year 2017 results and outlook for its first quarter 2018 at 2:00 p.m. Pacific Time today, March 6, 2018. 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 #5768987. 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 #5768987.

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Exhibit 99.1
sunrun1q2018image1.jpg


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 Brightbox 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 market position and market share, consumer demand, 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 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.



3
Exhibit 99.1
sunrun1q2018image1.jpg

Consolidated Balance Sheets
(In Thousands)

 
 
As of December 31,
 
 
2017
 
2016
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash
 
$
202,525

 
$
206,364

Restricted cash
 
39,265

 
11,882

Accounts receivable, net
 
76,198

 
60,258

State tax credits receivable
 
11,085

 
13,713

Inventories
 
94,427

 
67,326

Prepaid expenses and other current assets
 
9,202

 
9,802

Total current assets
 
432,702

 
369,345

Restricted cash
 
—

 
6,117

Solar energy systems, net
 
3,319,708

 
2,629,366

Property and equipment, net
 
36,402

 
48,471

Intangible assets, net
 
14,294

 
18,499

Goodwill
 
87,543

 
87,543

Prepaid tax asset
 
—

 
378,541

Other assets
 
37,225

 
34,936

Total assets
 
$
3,927,874

 
$
3,572,818

Liabilities and total equity
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
115,193

 
$
66,018

Distributions payable to noncontrolling interests and redeemable noncontrolling interests
 
13,583

 
10,654

Accrued expenses and other liabilities
 
85,639

 
59,261

Deferred revenue, current portion
 
77,310

 
70,849

Deferred grants, current portion
 
8,269

 
8,011

Capital lease obligations, current portion
 
7,421

 
10,015

Non-recourse debt, current portion
 
21,529

 
14,153

Lease pass-through financing obligation, current portion
 
6,087

 
5,823

Total current liabilities
 
335,031

 
244,784

Deferred revenue, net of current portion
 
584,427

 
583,401

Deferred grants, net of current portion
 
228,603

 
226,893

Capital lease obligations, net of current portion
 
5,811

 
12,965

Recourse debt, net of current portion
 
247,000

 
244,000

Non-recourse debt, net of current portion
 
1,026,416

 
639,870

Lease pass-through financing obligation, net of current portion
 
138,124

 
137,958

Other liabilities
 
13,520

 
5,457

Deferred tax liabilities
 
59,131

 
415,397

Total liabilities
 
2,638,063

 
2,510,725

Redeemable noncontrolling interests
 
123,737

 
137,907

Total stockholders’ equity
 
811,998

 
672,961

Noncontrolling interests
 
354,076

 
251,225

Total equity
 
1,166,074

 
924,186

Total liabilities, redeemable noncontrolling interests and total equity
 
$
3,927,874

 
$
3,572,818


4
Exhibit 99.1
sunrun1q2018image1.jpg


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

 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
Revenue:
 
 
 
 
 
 
 
 
Operating leases and incentives
 
$
59,536

 
$
45,333

 
$
231,433

 
$
168,417

Solar energy systems and product sales
 
86,907

 
75,251

 
298,266

 
285,481

Total revenue
 
146,443

 
120,584

 
529,699

 
453,898

Operating expenses:
 
 
 
 
 
 
 
 
Cost of operating leases and incentives
 
53,272

 
42,380

 
193,954

 
159,858

Cost of solar energy systems and product sales
 
74,174

 
63,005

 
254,131

 
239,381

Sales and marketing
 
35,357

 
35,685

 
137,115

 
162,781

Research and development
 
4,437

 
2,905

 
15,079

 
10,199

General and administrative
 
29,644

 
24,184

 
107,420

 
92,377

Amortization of intangible assets
 
1,050

 
1,052

 
4,204

 
4,206

Total operating expenses
 
197,934

 
169,211

 
711,903

 
668,802

Loss from operations
 
(51,491
)
 
(48,627
)
 
(182,204
)
 
(214,904
)
Interest expense, net
 
20,932

 
14,709

 
70,518

 
53,244

Other expenses (income), net
 
1,285

 
(380
)
 
1,874

 
(840
)
Loss before income taxes
 
(73,708
)
 
(62,956
)
 
(254,596
)
 
(267,308
)
Income tax expense (benefit)
 
(5,487
)
 
22,847

 
32,138

 
35,993

Net loss
 
(68,221
)
 
(85,803
)
 
(286,734
)
 
(303,301
)
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
 
(127,115
)
 
(114,835
)
 
(411,259
)
 
(394,988
)
Net income available to common stockholders
 
$
58,894

 
$
29,032

 
$
124,525

 
$
91,687

Net income per share available to common stockholders
 
 
 
 
 
 
 
 
Basic
 
$
0.55

 
$
0.28

 
$
1.18

 
$
0.90

Diluted
 
$
0.54

 
$
0.27

 
$
1.15

 
$
0.87

Weighted average shares used to compute net income per share available to common stockholders
 
 
 
 
 
 
 
 
Basic
 
106,538

 
103,504

 
105,432

 
102,367

Diluted
 
109,135

 
105,761

 
108,206

 
104,964




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Exhibit 99.1
sunrun1q2018image1.jpg

Consolidated Statements of Cash Flows
(In Thousands)

 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
Operating activities:
 
 
 
 
 
 
 
 
Net loss
 
$
(68,221
)
 
$
(85,803
)
 
$
(286,734
)
 
$
(303,301
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 

 
 

Depreciation and amortization, net of amortization of deferred grants
 
36,687

 
30,535

 
136,361

 
104,105

Deferred income taxes
 
(5,486
)
 
22,847

 
32,138

 
35,993

Stock-based compensation expense
 
5,548

 
4,697

 
22,042

 
18,723

Noncash interest expense
 
4,006

 
5,417

 
17,150

 
13,441

Interest on lease pass-through financing obligations
 
3,010

 
3,030

 
11,973

 
12,081

Reduction in lease pass-through financing obligations
 
(4,509
)
 
(4,402
)
 
(18,230
)
 
(18,551
)
Other noncash losses and expenses
 
6,697

 
1,081

 
13,546

 
5,235

Changes in operating assets and liabilities:
 
 
 
 
 
 

 
 

Accounts receivable
 
(3,907
)
 
(8,509
)
 
(17,870
)
 
674

Inventories
 
(31,104
)
 
18,615

 
(27,101
)
 
4,042

Prepaid and other assets
 
142

 
336

 
(3,478
)
 
(4,799
)
Accounts payable
 
16,168

 
(18,116
)
 
47,837

 
(40,336
)
Accrued expenses and other liabilities
 
13,940

 
3,805

 
2,573

 
11,819

Deferred revenue
 
5,184

 
3,118

 
8,782

 
10,294

Net cash used in operating activities
 
(21,845
)
 
(23,349
)
 
(61,011
)
 
(150,580
)
Investing activities:
 
 
 
 
 
 
 
 
Payments for the costs of solar energy systems, leased and to be leased
 
(221,183
)
 
(197,273
)
 
(804,371
)
 
(727,568
)
Purchases of property and equipment
 
(2,000
)
 
(2,147
)
 
(7,956
)
 
(12,544
)
Business acquisition, net of cash acquired
 
—

 
—

 
—

 
(5,000
)
Net cash used in investing activities
 
(223,183
)
 
(199,420
)
 
(812,327
)
 
(745,112
)
Financing activities:
 
 
 
 
 
 
 
 
Proceeds from state tax credits, net of recapture
 
988

 
—

 
13,773

 
9,081

Proceeds from issuance of recourse debt
 
45,000

 
104,000

 
170,400

 
458,400

Repayment of recourse debt
 
(45,000
)
 
(104,000
)
 
(167,400
)
 
(411,400
)
Proceeds from issuance of non-recourse debt
 
454,720

 
85,846

 
748,806

 
335,666

Repayment of non-recourse debt
 
(269,962
)
 
(4,963
)
 
(362,763
)
 
(23,076
)
Payment of debt fees
 
(8,060
)
 
(127
)
 
(14,392
)
 
(13,741
)
Proceeds from lease pass-through financing obligations
 
1,582

 
1,805

 
6,221

 
16,047

Repayment of lease pass-through financing obligations
 
—

 
—

 
—

 
—

Contributions received from noncontrolling interests and redeemable
   noncontrolling interests
 
123,599

 
151,335

 
594,921

 
573,542

Distributions paid to noncontrolling interests and redeemable noncontrolling interests
 
(15,769
)
 
(11,793
)
 
(54,530
)
 
(39,542
)
Acquisition of noncontrolling interests
 
(35,386
)
 
—

 
(35,386
)
 
—

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
 
1,242

 
2,660

 
1,035

 
7,364

Proceeds received, net and (offering costs paid) related to initial public offering
 
—

 
—

 
—

 
(437
)
Payment of capital lease obligations
 
(2,251
)
 
(3,091
)
 
(9,836
)
 
(12,759
)
Change in restricted cash
 
(19,292
)
 
(16
)
 
(21,350
)
 
(953
)
Net cash provided by financing activities
 
231,411

 
221,656

 
869,499

 
898,192

Net change in cash
 
(13,617
)
 
(1,113
)
 
(3,839
)
 
2,500

Cash, beginning of period
 
216,142

 
207,477

 
206,364

 
203,864

Cash, end of period
 
$
202,525

 
$
206,364

 
$
202,525

 
$
206,364


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Exhibit 99.1
sunrun1q2018image1.jpg


Key Operating Metrics and Financial Metrics
 
 
 
Full Year Ended December 31,
 
 
2017
 
2016
MW Booked (during the period) (1)
 
337

 
285

MW Deployed (during the period)
 
323

 
282

Cumulative MW Deployed (end of period)
 
1,202

 
879

Gross Earning Assets under Energy Contract (end of period)(in millions) (2)
 
$
1,459

 
$
1,200

Gross Earning Assets Value of Purchase or Renewal (end of period)(in millions)
 
$
754

 
$
609

Gross Earning Assets (end of period)(in millions) (2)(3)
 
$
2,213

 
$
1,809

 Net Earning Assets (end of period)(in millions) (3)
 
$
1,176

 
$
1,011

 
 
 
 
 


 
Three Months Ended December 31,
 
 
2017
 
2016
Project Value, Contracted Portion (per watt)
 
$
3.96

 
$
3.80

Project Value, Renewal Portion (per watt)
 
$
0.56

 
$
0.60

Total Project Value (per watt)
 
$
4.52

 
$
4.41

Creation Cost (per watt) (4)
 
$
3.30

 
$
3.41

Unlevered NPV (per watt) (3)
 
$
1.22

 
$
1.00

NPV (in millions) (3)
 
$
91

 
$
67


(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)
In the fourth quarter of 2017, Gross Earnings Assets under Energy Contract and Total Gross Earning Assets were reduced by $13 million to reflect changes related to modifications to the Federal Tax Code for assets deployed through December 31, 2017, including a reduction held as a reserve pending final tax regulation guidance based on the company’s best estimate of the potential effect.

(3)
Numbers may not sum due to rounding.

(4)
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.

7
Exhibit 99.1
sunrun1q2018image1.jpg

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 is calculated as the sum of the following items (all measured on a per-watt basis with respect to megawatts

8
Exhibit 99.1
sunrun1q2018image1.jpg

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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