Sunrun Hits Record Storage Rates, Partners with Tesla

Energy storage is changing the solar power landscape by enhancing the reliability and efficiency of solar panel systems. Integrating battery storage with solar panels offers numerous advantages, including improved energy resilience during power outages, better management of electricity costs, and increased self-consumption of solar energy. This integration not only benefits individual users but also contributes to broader grid stability and efficiency.

Sunrun Inc.—an American provider of photovoltaic systems and battery energy storage products—is part of this transformation, achieving record storage attachment rates in installations year-over-year for Q2 2024. Here is a summary of the initiatives Sunrun is committed to advancing energy storage solutions and broadening their impact across key markets.

Record-breaking performance in storage attachment rates

The company has notably increased its storage capacity installation guidance from approximately 58% to around 86% growth for the year, demonstrating robust momentum. Sunrun installed 265 Megawatt-hours of storage in Q2, marking a 152% increase year-over-year and the highest quarterly installation total. Mary Powell, Sunrun’s CEO, stated, “In Q2, we installed storage on 54% of our new customers, up from an 18% attachment rate in the prior year and a four-point increase from levels achieved in Q1.”

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Storage installations in Q2 grew 152% y/y to 265 Megawatt hours, achieving a 54% attachment rate. Courtesy of Sunrun.

Storage systems increase customer value through enhanced resiliency and control while providing higher margins for Sunrun. Powell attributed this success to Sunrun's strategic focus on storage, positioning the company as a leader in this growing segment. “Our fleet of network storage capacity has reached 1.8 Gigawatt-hours with 116,000 systems installed,” Powell added.

California, Texas, and beyond

During the Q2 earnings call, the company stated that it has achieved a high battery attachment rate of 80% in California, reflecting the state's strong demand for backup storage solutions. Sunrun’s Chief Revenue Officer Paul Dickson mentioned that the company also has regions with notably higher battery attachment rates. In places like Hawaii and Puerto Rico, nearly 100% of our installations include battery storage.

Texas is also seeing a sharp increase in storage adoption, driven by recent weather events and rising electricity costs; Dickson noted, “Texas has been trending up really steeply. We see a lot of future opportunity because of it.” Meanwhile, Powell highlighted that in the wake of Hurricane Barrel, over 1,600 Sunrun customers in the greater Houston area utilized their solar and storage systems to maintain power in their homes. These systems collectively provided more than 70,000 hours of backup energy during the extended outages caused by the storm.

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Sunrun is exploring opportunities to expand battery storage in other regions outside these major markets. While attachment rates are lower in areas like the East Coast, there is significant potential for growth as consumer interest in energy resilience and cost savings increases. The company's efforts to address diverse market needs and capitalize on regional opportunities reflect its commitment to broadening its impact in the energy storage sector.

A Sunrun customer powered his home with his solar-plus-storage system during a neighborhood outage in Houston. Courtesy of Sunrun.

Sunrun and Tesla partnership

Sunrun Inc. announced a strategic partnership with Tesla Electric to enhance Texas's power grid stability. The partnership has enrolled over 150 Sunrun customers, utilizing their residential solar-plus-battery systems to contribute stored solar energy to the grid.

Under the partnership, participating Sunrun customers will receive annual payments of $400 per Powerwall for their contributions while retaining a portion of the stored energy for backup power. This initiative not only supports grid reliability but also offers customers financial benefits and enhanced energy security.

Related:Banking on Batteries for Grid-Scale Storage

Equipped with a home solar and Powerwall batteries, Sunrun customers Jeff and Jennifer Wright kept their food refrigerated, lights on, and phones and computers charged during Hurricane Beryl. Courtesy of Sunrun.

Powell concluded, “Texas families are increasingly opting to add batteries to their solar installations. On-site energy storage not only provides homeowners peace of mind with outage protection but also enables them to participate in programs like these by contributing to solutions that better the lives of those in their communities.”

Sunrun's performance in storage attachment rates underscores the growing importance of integrating energy storage with solar panel systems. The company’s Q2 results, including a 152% increase in storage installations year-over-year, highlight storage's crucial role in enhancing the value of solar energy systems. Energy storage not only boosts customer resilience by providing backup power during outages but also increases solar power's overall efficiency and reliability. Partnerships like the one with Tesla can leverage residential solar-plus-battery systems to support grid stability and offer customers financial benefits, demonstrating energy storage's transformative impact on the clean energy sector.