Sunrun Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Revenue from External Customers

Revenue from external customers (including, but not limited to homeowners) for each group of similar products and services is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Customer agreements	$	872,298	$	725,220	$	432,527
Incentives	110,749		101,344		51,633
Customer agreements and incentives	983,047		826,564		484,160

Solar energy systems	913,904		471,283		269,866
Products	424,471		312,107		168,165
Solar energy systems and product sales	1,338,375		783,390		438,031
Total revenue	$	2,321,422	$	1,609,954	$	922,191

Schedule of Cash and Restricted Cash

The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. Cash and restricted cash consists of the following (in thousands):


	December 31,
	2022		2021		2020
Cash	$	740,508	$	617,634	$	519,965
Restricted cash, current and long-term	212,515		232,797		188,243
Total	$	953,023	$	850,431	$	708,208

Schedule of Cash and Restricted Cash


	December 31,
	2022		2021		2020
Cash	$	740,508	$	617,634	$	519,965
Restricted cash, current and long-term	212,515		232,797		188,243
Total	$	953,023	$	850,431	$	708,208

Schedule of Accounts Receivable, Net

Accounts receivable, net consists of the following (in thousands):


	December 31,
	2022		2021
Customer receivables	$	218,712	$	147,371
Other receivables	8,924		9,701
Allowance for credit losses	(13,381)		(11,035)
Total	$	214,255	$	146,037

Schedule of Property and Equipment Depreciation

Property and equipment is depreciated on a straight-line basis over the following periods:


Leasehold improvements						Lesser of 6 years or lease term
Furniture						5 years
Computer hardware and software						3 years
Machinery and equipment						5 years or lease term
Automobiles						Lease term

Solar energy systems, net consists of the following (in thousands):


	December 31,
	2022		2021
Solar energy system equipment costs	$	10,529,852	$	9,018,788
Inverters and batteries	1,384,776		1,127,014
Total solar energy systems	11,914,628		10,145,802
Less: accumulated depreciation and amortization	(1,682,296)		(1,267,932)
Add: construction-in-progress	756,029		581,826
Total solar energy systems, net	$	10,988,361	$	9,459,696

Property and equipment, net consists of the following (in thousands):


	December 31,
	2022		2021
Machinery and equipment	$	11,742	$	10,339
Leasehold improvements, furniture, and computer hardware	44,547		41,209
Vehicles	94,821		76,487
Computer software	53,314		43,552
Total property and equipment	204,424		171,587
Less: Accumulated depreciation and amortization	(136,985)		(114,701)
Total property and equipment, net	$	67,439	$	56,886

Schedule of Finite-Lived Intangible Assets

Finite-lived intangible assets are initially recorded at fair value and are subsequently presented net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:


Customer relationships						5 -10 years
Trade names						5 - 8 years

Intangible assets, net as of December 31, 2022 consist of the following (in thousands, except weighted average remaining life):


	Cost		Accumulated amortization		Carrying value		Weighted average remaining life (in years)
Customer relationships	$	32,770	$	(25,336)	$	7,434	1.8
Trade names	6,990		(6,897)		93		0.3
Total	$	39,760	$	(32,233)	$	7,527

Intangible assets, net as of December 31, 2021 consist of the following (in thousands, except weighted average remaining life):


	Cost		Accumulated amortization		Carrying value		Weighted average remaining life (in years)
Customer relationships	$	32,770	$	(20,346)	$	12,424	2.7
Trade names	6,990		(6,523)		467		1.3
Total	$	39,760	$	(26,869)	$	12,891

Schedule of Deferred Revenue

The opening balance of deferred revenue was $799.3 million as of December 31, 2020. Deferred revenue consists of the following (in thousands):


	December 31,
	2022		2021
Under Customer Agreements:
Payments received, net	$	840,771	$	645,439
Financing component balance	65,326		58,517
	906,097		703,956

Under SREC contracts:
Payments received, net	179,416		161,575
Financing component balance	10,460		8,080
	189,876		169,655

Total	$	1,095,973	$	873,611