Sunrun

As the leading solar installer in the United States, Sunrun provides reliable service and high-quality panels, but at a high price point. They advertise a solar leasing model that is beneficial in the short term for avoiding the upfront costs of solar. However, some customers have been left with a sour taste.

The main criticisms of Sunrun are financial, with accusations of underquoting, overcharging, annual rate increases, and failure to deliver the promised financial return for their panel installations. Nevertheless, Sunrun has the highest market share for solar installation in the US. They were the first in the US to introduce “solar as a service,” allowing customers to go solar without upfront costs in the form of solar leasing or Power Purchase Agreements (PPAs). 

These types of contracts are attractive for customers who wish to access solar energy with $0 down payments. Sunrun is a full-service solar offering that covers the initial consultation, permissions, installation, and post-installation system management. Sunrun offers Tier 1 solar panels from reputable manufacturers like Qcells, Silfab, Canadian Solar, and LONGi, which are known for their high conversion efficiency.

This is backed by safeguards such as a 25-year warranty for maintenance and repair, 24/7 system monitoring, and a lifetime 90% performance guarantee, all of which allow Sunrun customers to enjoy peace of mind that their solar panels are working as they should. Whilst Sunrun's customer service and communication have faced criticism in the past, recent improvements have been noted.

What is SunRun?

Sunrun is a leading U.S. residential solar industry provider headquartered in San Francisco. Sunrun was founded in January 2007 by Lynn Jurich, Ed Fenster, and Nat Kreamer in San Francisco, California. Since its inception, Sunrun has grown significantly, partnering with major manufacturers and stakeholders in the solar industry, such as Telsa and Ford.

Today, it operates in 20 American states alongside Puerto Rico and Washington DC. Sunrun has the highest market share in the residential solar market, at 12.5% in 2022. They partner with major retailers such as Lowes, Costco, and Home Depot to broadly market and distribute their services.

Sunrun is known for offering solar energy solutions to homeowners without requiring them to purchase the equipment upfront. This innovative model of using solar leasing or Power Purchase Agreements (PPAs) is touted to reduce the upfront costs of a solar system for homeowners. Sunrun specializes in providing a full-service package for those who want to install a solar system without paying upfront costs.

How many states does Sunrun operate in?

Sunrun operates in 20 states along with Puerto Rico and Washington, D.C. These states include Arizona, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Virginia.

Is Sunrun a good company?

Yes and no. Sunrun is one of the most successful solar installation companies in the US, however, it has a poor reputation amongst some of its customer base, based on consumer reviews. Sunrun provides high-quality panels and long-term guarantees regarding performance, maintenance, repair, and warranty. Nevertheless, the negative reviews citing issues related to financial agreements, poor customer service, lack of return on investment, and installation problems build a poor reputation.

Sunrun is a company with a wide reach across 22 states and territories, offering a comprehensive package including installation, maintenance, and monitoring services for solar systems. While the company has its strengths in partnerships with reputable brands like LG, LONGi, and Tesla, it faces challenges in customer service, as evidenced by online reviews citing slow responses, system failures, and long wait times for repairs.

It's important to note that Sunrun maintains an A+ rating with the Better Business Bureau, indicating a high level of credibility. However, given the mixed reviews from customers, it’s wise to delve into local branch reviews to gain a more accurate depiction of the company's performance in a specific area.

What is the customer feedback on installing solar panels with Sunrun?

Sunrun has received mixed reviews from customers. Some customers are highly satisfied with Sunrun's products and services, praising the professionalism of the sales and installation teams, the efficiency of the installed solar systems, and the convenience of having solar batteries to avoid blackouts. However, many customers have expressed dissatisfaction with Sunrun's customer service and communication.

Issues highlighted include delayed response times from customer service, poor communication regarding system failures, and unresolved technical problems leading to high electricity bills and non-operational solar systems. There have also been instances of missed appointments by technicians and problems with roof leaks following solar panel installation. Furthermore, some customers suggest that Sunrun employs aggressive sales tactics providing misleading financial information, particularly regarding solar leases and PPAs.

There have been reports of customers facing unexpected charges, and difficulty in filing warranty claims. Before committing to a Sunrun contract, it's crucial to thoroughly assess the financial situation, carefully consider your solar energy requirements, and diligently review all agreements.

What are the pros and cons of choosing Sunrun as a solar installer?

The three main pros of choosing Sunrun for solar installation are listed below.

• Quality of Solar Panels and Parts: Sunrun doesn't compromise on quality when it comes to its choices of solar panels, inverters, and batteries. Sunrun currently partners with leading solar panel manufacturers such as LONGi, Qcells, Silfab, and Canadian Solar. For inverters, Sunrun is partnered with SolarEdge Technologies and currently provides their next-generation Energy Hub smart inverter in their photovoltaic (PV) systems. Sunrun offers its own solar batteries called Brightbox, which is essentially a white-label offering of Tesla Powerwall and LG Resu Chem10 solar batteries. By partnering with leading solar manufacturers, Sunrun does right by its customers, ensuring high-quality, reliable, and efficient solar products for their installations.
• Flexible Financing and Ownership Options: Sunrun's financing options suit various budgets and financial situations. Their primary offering of Solar Leases and Purchase Plan Agreements (PPAs) means avoiding the upfront cost of a PV system. Nonetheless, for those who wish to own the PV system outright, solar loans and cash purchases are available as well. Sunrun is flexible in meeting customers’ financial needs. The no-down-payment options for loans and leases, especially, aim to make solar energy accessible, breaking a key barrier to adoption.
• Comprehensive Service Packaging: Sunrun’s comprehensive service, including panel installation, inspection, monitoring, and even financing, is a big plus for customers who value convenience and peace of mind. Sunrun manages the entire process from start to finish, including permits, coordinating with utilities, and ensuring correct system performance. Their monitoring service keeps your system running smoothly and promptly resolves any issues that arise. Sunrun offers free maintenance and repair for the duration of the agreement. Sunrun offers a 10-year workmanship guarantee, which covers any issues to do with the initial installation such as roof damage or incorrect placement. Additionally, they provide a 25-year maintenance and repair warranty, and with some plans, customers receive a guarantee that the system retains at least 90% of production efficiency over its lifetime.

The three main cons of Sunrun for solar installation are listed below.

• High Cost: Solar installation purchased outright through Sunrun typically costs between $4 and $5 per watt, which is higher than the usual price for a residential solar of $3 per watt. Some critics suggest the reason behind the higher pricing is to encourage customers to opt for a solar lease, which costs around $100-150 per month. The advantage of a PPA is avoiding the upfront cost of purchasing a solar installation. However, a major disadvantage is that the solar system remains in Sunrun’s ownership. Furthermore, there is an annual rate hike of 3-4%, which often comes as a surprise to many Sunrun customers. This is sometimes referred to as an “escalator fee,” and it further adds to the amount that Sunrun asks for its services.
• Poor Customer Service and Communication: Sunrun has previously received criticism for poor customer service and various customer communication problems. While Sunrun has shown improvement in this regard in recent years, potential customers are wise to read recent reviews to check if the service is likely to meet expectations. Some of the most common complaints about Sunrun include misleading sales tactics, poor communication between Sunrun and third-party suppliers, and slow responses to maintenance and repair requests.
• Customers Don’t Own the System: One major drawback of choosing Sunrun is the lack of ownership associated with their solar lease or PPA contracts. Due to Sunrun being the owner of the system, its customers miss out on directly receiving solar tax credits and incentives like the Federal Tax Credit, which are typically available to homeowners who buy their systems outright. Additionally, not owning your solar system restricts your decision-making power, especially regarding expansion, repairs, or replacement.

How much does installing solar cost with Sunrun?

Installing a solar system with Sunrun typically costs between $4 and $5 per watt, which is expensive compared to the usual price for residential solar of $3 per watt. Some critics suggest that Sunrun’s pricing encourages customers to opt for their solar lease offer. Sunrun highlights the advantage of this option, which is avoiding the upfront cost of purchasing a solar installation.

Leasing customers, in this case, do not own the solar system itself but pay around $100-150 per month in return for renting the system. The disadvantage of leasing is that customers don’t ever own the system outright.

The prices for a cash purchase of solar panels from Sunrun vary according to system size and panel types, as well as other factors such as site or installation necessities, solar storage choices, and location. An 8kW system installed with Sunrun costs between $20,000 and $25,000 and is more than sufficient to cover the energy needs of the average American home.

Smaller solar setups cost significantly less. For example, a 5 kW system installed with Sunrun costs between $12,500 and $15,600, a 6 kW system costs $15,000 to $18,720, and a 7 kW system costs $17,500 to $21,840.

Sunrun offers three primary financing options for solar installation: cash purchases, solar loans, and solar leases such as Power Purchase Agreements (PPAs). Cash purchases, where the solar panel system is paid for in its entirety, are the cheapest of Sunrun’s financing options in the long run because they provide the best return on investment without additional installment rate hikes or interest.

Solar loans involve financing a home solar system purchase, which requires paying it off in monthly installments with interest. The most expensive solar option through Sunrun is a PPA, which incurs monthly payments for the electricity generated from the solar panel system. It’s important to remember that the solar system itself remains Sunrun’s ownership in this case, and every year, there is an annual rate increase of around 3-4%.

What is the difference between a Solar Lease and a Solar Power Purchase Agreement (PPA)?

Solar leases and Power Purchase Agreements are similar in that they allow customers to install a residential solar system without needing to pay upfront. The main difference between a Solar Lease and a Solar Power Purchase Agreement (PPA) is that a solar lease entails a fixed monthly payment for utilizing your solar panels, whereas a PPA involves paying a predetermined price per kilowatt-hour (kWh) for the electricity generated by the solar system. In other words, a solar lease means paying to rent the PV system, whereas a PPA means paying for the electricity generated by the system.

Is Sunrun Worth It?

It depends. Sunrun is worth it for homeowners who appreciate convenient service, high-quality products, and a choice of financing options. However, customer feedback suggests that Sunrun’s value proposition often falls short of expectations in the eyes of some consumers. There is a prevalence of negative feedback from customers, highlighting issues with their service quality, communication, and support.

Purchasing a solar panel system through Sunrun is an attractive option for many as it provides a selection of top-tier solar panels sourced from renowned brands like LONGi and Canadian Solar. They offer inverters from SolarEdge exclusively, and rely on reputable companies like Tesla and LG for their solar batteries, which they provide through their whitelabel Brightbox offering. Solar installation from Sunrun is generally of high quality, and repair and maintenance are included in solar leasing agreements.

In addition, Sunrun is a popular solar provider due to the selection of financial options. Cash purchases provide the highest return on investment for homeowners because they often guarantee free electricity for more than 25 years. Conversely, using a Power Purchase Agreement (PPA) to obtain solar is not a worthwhile investment for many.

Though Sunrun takes on responsibility for all aspects of repair and maintenance over the 25-year lifetime of the panels, customers are required to pay monthly fees (with annual rate increases) without ever owning the system. Sunrun’s solar leasing is mainly an attractive option for upscale customers who value quality and convenience.

Apart from the positives, a closer look reveals some notable drawbacks associated with Sunrun. Feedback from a substantial number of customers highlighted issues concerning service quality, communication efficiency, and a lack of post-installation support. Furthermore, many homeowners who opted for solar leasing with Sunrun reported financial issues such as hidden costs, unexpected interest hikes, and overall non-transparency in dealing with Sunrun.

How Does Sunrun Compare to Other Industry-Leading Solar Companies?

A detailed comparison of Sunrun compared to major competitors like SunPower and Tesla Energy is given in the table below.

How does Sunrun compare to other solar installers in terms of price?

Sunrun has a reputation for being expensive compared to other installers like Tesla. Customers who want to purchase a solar system in cash are quoted prices as high as $4-5 per watt. The company incentivizes the choice of a solar leasing agreement, such as a Power Purchase Agreement (PPA), where customers don’t own the system but pay a monthly fee for the electricity generated instead.

With a Sunrun lease, customers are typically required to pay between $120-200 monthly, which means paying around $45,000 over 25 years. By contrast, a 5kW system purchased from Sunpower costs around $13,000 to $21,000, while a 5kW system from Tesla is around $15,000-$20,000.

In the long run, purchasing a PV system through Tesla or Sunpower is much cheaper than a leased Sunrun panel system. This is especially true considering that Sunrun customers don’t own the system at the end of the lease, nor do they directly receive the tax credits and incentives associated with solar ownership.

How does Sunrun compare to other solar installers in terms of product quality?

It’s hard to fault Sunrun when it comes to product quality. Sunrun offers top-tier monocrystalline solar panels with impressive efficiency ratings ranging from 21.3% to 21.5%. Unlike some installer-manufacturers like SunPower, Sunrun, as a non-manufacturer, provides a broader selection of Tier 1 panels.

They utilize SolarEdge inverters, renowned for their reliability, and offer solar battery solutions from brands like Tesla, offering the Powerwall battery series under a white-label product called Brightbox. While Sunrun has received criticism for customer satisfaction issues, its quality, features, and safety proposition are rarely questioned.

How does Sunrun compare to other solar installers in terms of customer service?

Sunrun has a mediocre or even negative reputation for customer service, which is not dissimilar to other national installers. Sunrun advertises a robust customer service infrastructure, including 24/7 system monitoring and customer support via phone or email.

In a practical sense, its customer service is decently responsive. However, there is significant customer feedback pointing to issues with poor communication, delayed response times, and unresolved technical problems. Many of these problems relate moreso to general customer satisfaction issues, rather than customer service issues per se.

How does Sunrun compare to other solar installers in terms of maintenance and repair?

Sunrun offers comprehensive maintenance and solar repair services to a standard similar to that of its competitors like Tesla. Sunrun’s main service offering of solar leasing or Power Purchase Agreements (PPAs) ensures that any issues with the solar systems are addressed.

Maintenance and repairs involve regular system checks, fixing any operational issues, and replacing defective components to ensure the system operates efficiently. However, some customers have reported delays in service and inadequate resolution of problems, suggesting a gap between the promises made by Sunrun and their actual service.

How does Sunrun solar installation work?

Solar installation through Sunrun involves a team of professionals assessing your home, customizing a solar energy system, obtaining necessary permits, installing the system, and connecting it to the grid. Firstly, a Sunrun technician visits the home for a site assessment within the first few weeks. This visit includes system design confirmation, measurement verification, and shade adjustments.

After the assessment, Sunrun's solar design experts review the site evaluation and make necessary adjustments to the original design for approval. Upon approval, they handle the permitting process and submit the design to the city. Permitting timelines vary based on local government speed and usually take around 6-8 weeks. Once the design is permitted, the Sunrun team gets to work on the solar installation.

Following installation, a city or county inspection is conducted before the system is connected to the grid. Sunrun then handles the utility interconnection process, submitting documents to the utility company for a net meter installation. This step typically takes 3-6 weeks. Finally, after receiving Permission to Operate from the utility company, the system is switched on to start generating clean, affordable solar energy.

What does Sunrun offer in terms of warranty?

Sunrun provides three types of warranties as part of its solar service offering, including a 25-year product warranty, a 25-year performance warranty, and a 10-year workmanship warranty for labor and installation.

More information on the three main Sunrun warranties is listed below.

• 25-year Maintenance and Repair Warranty: Sunrun offers a 25-year product warranty for its solar panels that covers any defects or issues related to your solar panel system.
• 25-year Performance Warranty: Sunrun guarantees that the system will keep at least 90% of its predicted output throughout its lifetime, and will cover the shortfall if the solar production falls below this threshold.
• 10-year Labor and Installation Warranty: Sunrun provides a 10-year labor and installation warranty. This covers any workmanship-related issues during the installation process such as leaks, faulty wiring, or roof damage which relate to the initial installation.

Is it difficult to cancel a Sunrun contract?

No, canceling a contract with Sunrun is more straightforward than some expect, especially when compared to the dread surrounding such processes. Technically, the contract isn't binding until the solar panels are installed on the roof, offering a window of opportunity to cancel.

This is backed by both sales reps and individuals who've had direct experience with Sunrun's cancellation policy, suggesting that Sunrun doesn’t make it purposely difficult to cancel before installation.

However, where things get a bit tangled is in the specifics of how to cancel a Sunrun contract, especially considering the mixed messages about whether to call, email, or mail the cancellation notice. Some customers suggest Sunrun provides purposefully contradictory information on cancellations. The best way to cancel your Sunrun contract is to contact your sales rep and ask them how to ask for a cancellation, ensuring your notice is postmarked by the cancellation deadline.

Is Sunrun going out of business?

No, Sunrun is not at risk of going out of business soon. However, Sunrun's optimistic outlook for 2024, emphasizing a shift towards high-margin storage offerings and positive cash generation, contrasts with some troubling external reports.

Sunrun faces a 48.0% Probability Of Bankruptcy according to Macroaxis. This financial analysis platform indicates significant risk, fueled by the impacts of COVID-19 and financial struggles leading to operational shutdown as reported by Slide Business.

The conflicting narratives raise doubts about the reliability of Sunrun's public statements, posing a dilemma for potential customers. Questions linger on the company's future stability, the impact on existing contracts, and the prudence of engaging with Sunrun amidst these uncertainties.

However, looking ahead to Sunrun's next financial year, the company anticipates robust growth in installed storage and solar capacities. With an expected increase in Net Subscriber Value and a positive cash generation outlook, Sunrun aims to achieve significant milestones in the upcoming year, positioning itself for continued success and expansion in the renewable energy market.