Sunrun Signs Virtual Power Plant Agreement With Southern California Edison

Rhea-AI Summary

Sunrun (NASDAQ: RUN) has announced a new contract with Southern California Edison (SCE) to provide 5 MW of energy capacity through its Brightbox solar-powered battery systems by 2023. This initiative aims to enhance grid resilience and manage peak demand during high-stress events like heat waves. The project will also ensure that at least 10% of the capacity comes from low-to-moderate income households, promoting affordable energy access. Installations will begin in late 2020 and conclude by August 2023, enabling Sunrun to offer recurring revenue through virtual power plant services.

Positive

• Contract with SCE for 5 MW energy capacity boosts revenue potential.
• Installation of Brightbox systems supports low-to-moderate income households, enhancing market reach.

Negative

• None.

Thousands of Sunrun Brightbox home solar-powered battery systems to provide 5 MW of new energy capacity by 2023

SAN FRANCISCO, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Sunrun (NASDAQ: RUN), the leading provider of residential solar, battery storage and energy services, today announced that it has contracted with one of the largest electric utilities in the United States, Southern California Edison (SCE), to increase grid resilience and lower power costs. SCE will send signals to Sunrun during high-demand events such as extreme heat waves when the energy grid is strained. In response, Sunrun will dispatch energy from thousands of its Brightbox solar-powered battery systems installed in the SCE territory, providing five megawatts (MW) of energy capacity to help support the overall energy system. The same solar-powered home batteries will also provide reliable backup power to these households if the power goes out.

“The need for a more resilient grid and backup power could not be more apparent in California at this moment in history,” said Lynn Jurich, Sunrun’s Chief Executive Officer and co-founder. “Sunrun’s contract with SCE will provide affordable, clean, reliable energy solutions for California’s grid, as well as help individuals take control of their energy future.”

The Sunrun-SCE contract will participate in California Independent System Operator’s (CAISO) Resource Adequacy (RA) program, which ensures efficient and reliable operation of California’s grid. By bundling the power from these batteries together to create a “virtual power plant”, Sunrun will release stored solar energy to the grid when it’s needed most, lowering the overall cost of power and reducing critical strain on the energy system. At least 10% of the RA capacity will be provided from Brightbox systems installed on low-to-moderate income households, helping ensure everyone can benefit from clean, affordable, and reliable home energy.

Sunrun will soon begin reaching out to customers to participate in this program and will start installations at the end of 2020, with plans for all installations to be completed by August 2023. This new contract with SCE extends a decade with fixed pricing and provides Sunrun incremental recurring revenue from providing virtual power plant services to the grid. SCE customers interested in participating in the program can purchase or lease a Sunrun Brightbox home solar-powered battery system for no up-front cost and low monthly payments. Homeowners can learn more at www.sunrun.com.

About Sunrun
Sunrun Inc. (Nasdaq: RUN) is the nation’s leading home solar, battery storage, and energy services company. Founded in 2007, Sunrun pioneered home solar service plans to make local clean energy more accessible to everyone for little to no upfront cost. Sunrun’s innovative home battery solution, Brightbox, brings families affordable, resilient, and reliable energy. The company can also manage and share stored solar energy from the batteries to provide benefits to households, utilities, and the electric grid while reducing our reliance on polluting energy sources. For more information, please visit www.sunrun.com.

Sunrun Contact:
Wyatt Semanek
Public Relations Manager
press@sunrun.com
(480) 751-9286

Sunrun Investor & Analyst Contact:
Patrick Jobin
Vice President, Finance & Investor Relations
investors@sunrun.com
(415) 373-5206 

FAQ

What is Sunrun's new contract with Southern California Edison about?

Sunrun has contracted with Southern California Edison to provide 5 MW of energy capacity via its Brightbox solar-powered battery systems, enhancing grid resilience.

When will Sunrun complete installations for the Brightbox battery systems?

All installations for the Brightbox battery systems are expected to be completed by August 2023.

How does Sunrun plan to support low-income households with its energy services?

At least 10% of the energy capacity from the Brightbox systems will be allocated to low-to-moderate income households.

What are the financial benefits of the Sunrun and SCE contract?

The contract provides Sunrun with incremental recurring revenue from virtual power plant services, ensuring stable income.

How will the Brightbox systems help during power outages?

The Brightbox solar-powered battery systems will offer reliable backup power to households in the event of a power outage.