- In the fourth quarter of 2020, Megawatts Deployed (MW) were approximately 171.6 MW, a 10% sequential increase from the third quarter of 2020, pro-forma to give effect to Sunrun’s acquisition of Vivint Solar which closed on
October 8, 2020 . This reflects the deployments for approximately 23,500 customers in the period, resulting in total Customers of more than 550,000 as ofDecember 31, 2020 . Cumulative Megawatts Deployed were 3,885 MW as ofDecember 31, 2020 , pro-forma to give effect to Sunrun’s acquisition of Vivint Solar. - Gross Earning Assets as of
December 31, 2020 were$6,923 million . Gross Earnings Assets were calculated using a 6% unlevered discount rate. - Net Earning Assets, which is Gross Earning Assets less adjusted project level debt and pass-through financing obligations, was
$2,900 million as ofDecember 31, 2020 . Adjusted project level debt and pass-through financing obligations used to calculate Net Earning Assets was$4,023 million . - Cash, including restricted cash, was
$708 million as ofDecember 31, 2020 . Recourse debt was$230.7 million , and an additional$60.0 million was recourse solely to Vivint Solar, Inc. and certain of its subsidiaries, as ofDecember 31, 2020 . Total debt, including recourse debt, non-recourse debt and financing obligations was$5.1 billion as ofDecember 31, 2020 . In the fourth quarter of 2020, transaction costs related to the acquisition of Vivint Solar, paid by either Vivint Solar or the company, were estimated to be in a range of$60 million to$70 million .
The company anticipates releasing fourth quarter 2020 earnings on or about
Although the preliminary and unaudited financial results and operating metrics presented above have been prepared in good faith on a consistent basis with prior periods, these preliminary estimates are based solely upon information available to management as of the date of this press release. The company has not completed its financial closing procedures for the three months and year ended
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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 leadership and our preliminary and unaudited financial results and operating metrics as of and for the three months ended
Definitions
Customers represent the aggregate number of solar system installations, whether sold directly to individuals or subject to executed Customer Agreements, that have been recognized as Megawatts Deployed.
Customer Agreements refers to, collectively, solar power purchase agreements and solar leases.
Gross Earning Assets represent the remaining net cash flows (discounted at 6%) we expect to receive during the initial term of our Customer Agreements (typically 20 or 25 years) 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 deducts 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 project equity financing providers. In calculating Gross Earning Assets, we do not deduct customer payments we are obligated to pass through to investors in pass-through financing obligations as these amounts are reflected on our balance sheet as long-term and short-term pass-through financing obligations, similar to the way that debt obligations are presented. In determining our finance strategy, we use pass-through financing obligations and long-term debt in an equivalent fashion as the schedule of payments of distributions to pass-through financing 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. We calculate the Gross Earning Assets value of the purchase or renewal amount at the expiration of the initial contract term assuming either a system purchase or a five year renewal (for our 25-year Customer Agreements) or a 10-year renewal (for our 20-year Customer Agreements), in each case forecasting only a 30-year customer relationship (although the customer may renew for additional years, or purchase the system), at a contract rate equal to 90% of the customer’s contractual rate in effect at the end of the initial contract term. After the initial contract term, our Customer Agreements typically automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing power prices. Gross Earning Assets Under Energy Contract represents the remaining net cash flows during the initial term of our Customer Agreements (less substantially all value from SRECs prior to
Megawatts Deployed represents the aggregate megawatt production capacity of our solar energy systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed on the roof, subject to final inspection, (ii) in the case of certain system installations by our partners, for which we have accrued at least 80% of the expected project cost, or (iii) for multi-family and any other systems that have reached NTP, measured on the percentage of the project that has been completed based on expected project cost.
Net Earning Assets represents Gross Earning Assets less both project level debt and pass-through financing obligations, as of the same measurement date. Because estimated cash distributions to our project equity financing partners are deducted from Gross Earning Assets, a proportional share of the corresponding project level debt is deducted from Net Earning Assets.
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.
Investor & Analyst Contact:
Senior Vice President, Finance & IR
investors@sunrun.com
(415) 373-5206
Source:
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