Sunrun Inc.

Good afternoon and welcome to Sunrun's third quarter 2024 earnings conference call. Please note that this call is being recorded and that one hour has been allocated for the call, including the Q&A session. To join the Q&A session after prepared remarks, please press star 1 at any time. We ask participants to limit themselves to one question and one follow-up question. I will now Turn the call over to Patrick Jobin, Sunrun's Investor Relations Officer.

Thank you, Operator. Before we begin, please note that certain remarks we will make on this call constitute forward-looking statements. Although we believe these statements reflect our best judgment based on factors currently known to us, actual results may differ materially and adversely. Please refer to the company's filings with the SEC for a more inclusive discussion of risks and other factors that may cause our actual results to differ from projections made in any forward-looking statements. Please also note these statements are being made as of today and we disclaim any obligation to update or revise them. On the call today are Mary Powell, Sunrun's CEO, Anthony Badgen, Sunrun's CFO, and Paul Dixon, Sunrun's President and Chief Revenue Officer. A presentation is available on Sunrun's Investor Relations website along with supplemental materials. An audio replay of today's call along with a copy of today's prepared remarks and transcript including Q&A will be posted to Sunrun's Investor Relations website. We have allocated 60 minutes for today's call, including the Q&A session. And now let me turn the call over to May.

Thank you, Patrick. And thank you all for joining us today. This was a strong quarter. Sunrun is becoming faster, better, and stronger at everything we do, providing a differentiated customer experience and delivering value to the bottom line. While public markets fret policy uncertainty and changes in the short term, Sunrun is more confident than ever in our leadership position, differentiated offerings, and our ability to generate enduring value. All Americans want reliable, affordable energy, and that has not changed. Our focus is yielding strong operating and financial results. In Q3, in addition to reaching the 1 million customer milestone, we again set new records for storage installations, net subscriber values, and delivered solid quarter-over-quarter growth for solar installations. We delivered the second consecutive quarter of positive cash generation and are reiterating our strong cash generation outlook for the fourth quarter and for 2025. Our primary focus is accelerating our clean energy differentiation, launching additional products and services to expand customer lifetime values, and remaining the disciplined, margin, and customer-focused industry leader growing cash generation in the business for years to come. One way we are executing this higher margin strategy is by leading with our storage offering, which increases the customer value proposition through enhanced resiliency and control, delivers a more sophisticated clean energy platform, and lays the foundation for future value creation from grid services. We are blazing the trail to a storage-first future with a nearly 50% share of all residential storage installations in America. In Q3, we installed storage on 60% of our new customers, nearly double the 33% attachment rate a year ago, and a six-point increase from levels achieved in Q2. We installed 336 megawatt hours of storage in Q3, up 92% from a year ago, the most we have installed in any quarter. Our fleet of network storage capacity has reached 2.1 gigawatt hours, with 135,000 storage systems installed. While still in the early stages of commercializing these important dispatchable energy resources, we continue to advance programs that generate value for customers, the grid, and Sunrun. We now have 16 grid service programs active across the country, with over 20,000 customers participating. These resources are being utilized by the grid and can replace several costly and polluting gas fired cheaper plants. Sunrun is leading in establishing a platform to turn homes and vehicles into smart, controllable load that can be dispatched to and improve the electric grid. Most recently, we activated New York's largest residential power plant with the utility Orange and Rockland. This adds to our recently announced partnerships with Tesla Electric and Vistra to support the grid in Texas. as well as our other programs in California, Maryland, and Puerto Rico. Our customers are actively reducing the need to overinvest in costly centralized peaking power plants and the associated infrastructure. Customers are also benefiting from direct payments for participating in these programs or, in some cases, receiving batteries at discounted prices when subscribing to our service. Sunrun is also earning incremental revenue for enrolling storage systems in these programs. These incredibly reliable clean energy resources lower the cost of the grid for all users. These same storage resources routinely provide financial value to customers by optimizing their use against far too complicated utility rate structures, while also powering them through far too frequent grid outages. This hurricane season, again, showed the crippling effects of climate change on our country's aging infrastructure. I'm pleased to report, but not surprised at all, that our systems performed remarkably well as they are built to withstand these harsh events. Nearly 3,000 Sunrun storage customers powered through hurricanes Beryl, Helene, and Milton with 100,000 hours of critical backup power during and in the aftermath of these devastating storms. It is so inspiring to hear from many of our customers that while their local grid systems were down for multiple days, they were able to keep their homes powered and in many instances share some of that power with neighbors in need. A cornerstone of our strategy to increase our differentiation and augment our competitive advantage is to become a multi-product company that offers a suite of clean energy products to new and existing customers in a bundled, easy-to-finance way. By continuing to invest heavily in service, and providing a leading customer experience, we are able to monetize opportunities to provide additional products to our large base of customers for decades into the future. We are demonstrating this potential by testing products through pilots and scaling them once success is proven. On slide seven, we highlight the various initiatives underway to learn from and inform our strategy to provide valuable services to existing customers. One of the areas where we are seeing tremendous success is offering batteries to existing customers. Nearly 87% of our existing 1 million customer base today does not have a Sunrun storage system. We already have thousands of orders, which have been growing rapidly. One way we are selling the offering is through our Sunrun app. We are seeing tremendous interest from customers in signing up through the app, which positions us to fulfill quickly, simply, and at a low cost. You will hear a lot more about this multi-product strategy and our success providing additional products and services to customers in the quarters ahead. I want to spend a minute on what we are seeing in recent industry data. We don't manage to market share. We view our leading position in the industry as a natural long-term result of pursuing a customer-first, disciplined growth strategy. There have been periods with irrational competitive behavior. such as pricing and terms loan providers offered a few years ago, and more recently, pricing and terms being offered by certain financing-only new entrants. But our view is that fundamentals always prevail in the long term. We lead with the best possible customer experience, underwrite healthy and financially sound business, and grow in a sustainable strategic way. The latest data from market research firms highlights that our strategy is indeed leading to strong growth. we have seen our share of residential solar installations nationwide pick up significantly in the last few quarters, from 13% in Q1 to 18% in Q3. And our residential storage share has expanded to 49% in the U.S. I'm pleased to see these trends, but more pleased that we are doing it in a way that is generating cash and delighting our customers. I also want to provide an update on the traction in our new homes business. This division is seeing tremendous growth. Sunrun is now working with nine of the top 10 new home builders in California and over half of the top 20 home builders in the U.S. In September, we signed a multi-year exclusive agreement with Toll Brothers in California. While the new homes division currently represents less than 5% of our volumes, we expect it to grow at least 50% over the next year. Home builders appreciate our leading subscription offerings, service commitments, and long track record. Our offering can provide new home buyers with immediate value, savings on energy, and resiliency from backup storage without increasing the cost of purchasing the home. To sum it up, we are gaining share in a disciplined and sustainable way and are on track to accelerate our cash generation in the quarters ahead. Utility rates continue to rise, and utility service reliability is deteriorating, while solar and storage equipment costs are declining. Customers remain eager to take control of their energy needs with affordable and resilient solutions to power their lives, the ultimate in independence. Before handing the call over to Danny, as always, I want to take a moment to celebrate some of our people who truly embrace the power of energy independence and the desire to connect customers to the cleanest energy on earth Our leading direct-to-home sales team in Bakersfield and our top installation team in Oahu have delivered some incredible results this quarter on safety, quality, battery attachment rates, and customer experience. Thank you so much for all that you do every single day to make Sunrun the trusted and beloved clean energy partner for our valued customers. I want to make a specific shout-out to Sterling Hills for your great leadership and achievements at Sunrun. Thank you, Sterling. All right, with that, let me turn the call over to Danny for our financial update.