Sunrun recently surpassed Tesla in the US residential market, primarily by default as Tesla continues to restructure its solar operations towards sustainable profitability but Sunrun should gain recognition for maintaining around the double digit deployment and revenue growth over the last several years, despite the residential market flat lining and more market share taken by smaller, regional installers.
Although seasonality plays a part in deployments and revenue recognition, Sunrun’s solar rooftop deployments have increased from 65MW in the second quarter of 2016 to a record 91MW in the second quarter of 2018.
According to the data so far available, Sunrun’s mainstream products are coming from LONGi Solar with its high-efficiency P-type mono PERC panels instead of being P-type multi-PERC based panels from REC Group.
Although the charts have yet to technically align after only four months of 2018 data, clearly Sunrun has been shifting to high-efficiency p-type and n-type mono panels at the expense of suppliers of multi-PERC.
There are some obvious reasons for the shift to high-efficiency panels, importantly for balance of system (BOS) costs. Fewer panels are required for a given rooftop PV system, which translates into less racking and wiring as well as short installation times.
In California you could add higher overall system yield due to the cell technologies being used, coupled to better temperature coefficient factors of mono over multi.
But not least is the benefit of lower performance degradation rates of mono over multi over a 20 to 25-year life-cycle, further boosting overall yields.
Another not insignificant factor influencing Sunrun’s panel technology supplier base is its long-standing solar lease business model. Being able to pass-on ownership to the lease holder after 20 years would seem more advantageous when it related to high-efficiency mono panels with less degradation than P-type mono and limits reliability risks on Sunrun.