What changed in this filing

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Item 1. Business

2025-02-27 compared with 2024-02-21 · 29 added, 24 removed, 207 unchanged (20% of the section changed)

31 unchanged sentences

We have a Networked Solar Energy Capacity of 7,531 megawatts as of December 31, 2024, which represents the aggregate megawatt production capacity of our solar energy systems that have been recognized as deployments, from our inception through the measurement date.

Our Gross Earning Assets as of December 31, 2023 were approximately $14.2 billion.

Gross Earning Assets as of December 31, 2024 were approximately $17.8 billion.

Please see the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Key Operating Metrics” for more details on how we calculate Networked Solar Energy Capacity and Gross Earning Assets.

113 unchanged sentences

In addition, for some investors, the acceleration of depreciation creates a valuable tax benefit that reduces the overall cost of the solar energy system and increases the return on investment.

The federal government also currently offers an investment tax credit (“Commercial ITC”) under Section 48(a) of the Internal Revenue Code of 1986, as amended (the “Code”), for the installation of certain energy properties, including solar power facilities owned for business purposes.

The federal government also currently offers an investment tax credit (“Commercial ITC”) under Section 48(a) of the Internal Revenue Code of 1986, as amended (the “Code”) as well as a technology-neutral investment tax credit under Section 48(E) of the Code (the “48E Credit” and collectively with the Commercial ITC, the “ITCs”), for the installation of certain energy properties, including solar power facilities and energy storage owned for business purposes.

The Inflation Reduction Act of 2022 (the “IRA”) was signed into law by President Biden on August 16, 2022, and some of its notable provisions include:

• the eligibility of solar facilities placed in service in 2022 (regardless of when construction began) and prior to January 1, 2025 for a 30% Commercial ITC under Section 48(a) of the Code (assuming apprenticeship and prevailing wage requirements are met;

• the eligibility of solar facilities placed in service in 2022 (regardless of when construction began) and prior to January 1, 2025, or, at the election of the taxpayer, solar facilities that began construction prior to January 1, 2025 and are placed in service on or after January 1, 2025, for a 30% Commercial ITC under Section 48(a) of the Code (assuming apprenticeship and prevailing wage requirements are met;

these requirements are deemed met for projects less than 1 MW), with standalone storage beginning in 2023;

• in the absence of meeting apprenticeship and prevailing wage requirements, the “base” amount of the Commercial ITC is 6% for facilities beginning construction prior to January 1, 2025 and 2% thereafter (however, as indicated above, the majority of our business qualifies for 30% credits upon which “bonus credits” could increase the total credit amount up to 70% in certain circumstances);

• the eligibility of solar and storage facilities placed in service after 2024 and through at least 2032 for a 30% technology-neutral ITC under Section 48E of the Code (the “48E Credit”);

• the eligibility of solar and storage facilities that begin construction after December 31, 2024 (or began construction prior to January 1, 2025 but do not elect application of the Commercial ITC) and are placed in service after 2024 and through at least 2033 (with phase down for projects that begin construction after (i) 2033 or (ii) if later, the first year after the year in which the U.S.

Department of Treasury determines greenhouse gas emissions from the production of electricity in the United States are no more than 25% of 2022 levels), for a 30% 48E Credit (assuming application of same apprenticeship and prevailing wage requirements outlined above);

• several new ITC bonus credits under both the Commercial ITC and the 48E Credit, which apply to certain facilities placed in service beginning in 2023, including those meeting certain domestic content requirements, those located in “Energy Communities,” and those located in or that benefit low-income communities and tribal communities.

5 unchanged sentences

The Residential Clean Energy Credit is not available for property placed in service after December 31, 2034.

We and our tax equity partners have claimed and expect to continue to claim investment tax credits (“ITCs”) with respect to qualifying solar energy projects.

We and our tax equity partners have claimed and expect to continue to claim ITCs with respect to qualifying solar energy projects.

In structuring tax equity partnerships and determining ITC eligibility, we have relied upon applicable tax law and published IRS guidance.

Treasury issued a final rule on the ITC bonus credit for low-income communities in 2023 and is expected to issue final rules on the other ITC bonus credits in 2024.

Some of these final rules may be subject to Congressional Review Act (“CRA”) challenges in 2025, based on legal outcomes determining whether certain final rules are subject to the CRA, and on the date the U.S.

Treasury finalizes and publishes the final rules.

Treasury issued final regulations on the Commercial ITCs in December 2024 and on the 48E Credits and the ITC bonus credit for low-income communities in 2023 and is expected to issue final rules on the other ITC bonus credits in 2025.

Some of these final rules may be subject to Congressional Review Act (“CRA”) challenges in 2025, based on legal outcomes determining whether certain final rules are subject to the CRA.

Notably, the U.S.

Treasury has not issued proposed or final rules on the Energy Communities Bonus Credit or the Domestic Content Bonus Credit, so we continue to rely on other published IRS guidance in this regard.

More than half of the states in the U.S., and many local jurisdictions, have established property tax incentives for renewable energy systems that include exemptions, exclusions, abatements and credits.

Many states also have adopted procurement requirements for renewable energy.

Many states also have

adopted procurement requirements for renewable energy.

Approximately thirty states and the District of Columbia have adopted a renewable portfolio standard (and approximately eight other states have some voluntary goal) that requires regulated utilities to procure a specified percentage of total electricity delivered in the state from eligible renewable energy sources, such as solar energy systems, by a specified date.

2 unchanged sentences

While there are numerous federal, state and local government incentives that benefit our business, some adverse actions, interpretations or determinations of new or existing laws or regulations could have a negative impact on our business.

For example, in the future, Congress could revise or eliminate certain provisions in the IRA that could negatively impact our business, such as reducing the percentage or duration of the ITC.

For example, in the future, Congress could revise or eliminate certain provisions in the IRA that could negatively impact our business, such as reducing the percentage or duration of the ITCs.

Federal agencies may also issue tax guidance or regulations that could negatively impact our business, by, for example, narrowing the applicability of ITC bonus credits or preventing certain businesses from participating.

Human Capital Management

At Sunrun, we love people and believe that focusing on, and investing in, our people is critical to our mission to work together to electrify homes and give all people the joy of clean, abundant energy from the sun.

At Sunrun, the foundation of all our talent programs and initiatives is fostering a culture of inclusive, connected and innovative teams.

In 2023, we focused on aligning our human capital strategy to support a high performance, customer-focused culture where our employees can thrive and meet our customer needs.

We built additional community partnerships focused on attracting candidates from underrepresented populations and continued to provide learning and development opportunities aimed at promoting engagement and retention.

At Sunrun, our human capital strategy is to attract, retain and develop the highest quality workforce.

We do this by providing a differentiated company culture and employee experience, including through our compensation and benefits programming;

and through the support of our employees’ career mobility, leadership development, continuous education and upskilling.

In 2024, we invested and deployed a career mobility platform and this is our fourth year offering an education benefit.

Through our education benefit, we develop future leaders with curated programs aligned to Sunrun’s priorities, enhancing business skills and job performance.

Our career development programming is particularly focused on growing and developing our frontline sales and installation employees, who make up 81% of our workforce.

In 2024 we also launched our wellbeing strategy to enhance and support our employees’ mental, physical, social, financial, and career wellbeing.

Inclusion and Diversity .

To help us continue to progress toward our goals, we continue to require that a diverse slate of qualified candidates must be presented to hiring managers for all new management-level roles and above.

We believe that a culture of belonging creates an engaged and motivated workforce focused on our customers and delivering value for our shareholders.

We are focused on ensuring all of our employees are informed and regularly connected to values and performance based leadership through our internal communication platform.

To ensure we have a large pool of applicants from a variety of backgrounds, and therefore that we identify the best qualified talent, we develop a diverse slate of qualified candidates to be presented to hiring managers for all new management-level roles and above.

Additionally, we require that our interview panels of all new management-level roles and above include a diverse panel of interviewers.

We also have minimum requirements for the length in time that many roles are posted to promote consideration of internal candidates and a broader range of external candidates.

In 2023, we fostered deeper talent attraction partnerships with local organizations such as Illinois Solar For All (ILSFA) and military partnerships such as Skillbridge for hiring retiring military service members.

To progress our diversity efforts (achieving female director parity and parity in Black, Indigenous, People of Color (BIPOC) managers), we are investing in internal career progression programming and a career progression platform we plan to launch in early 2024.

We have grown our Sunrun Employee Resource Groups (“ERGs”) to promote connection and communication among our employees, foster inclusivity, and assist in the development and facilitation of programming to support personal and professional development.

Our eight ERGs have grown to a membership of over 1,000 employees as of December 31, 2023.

We also have minimum requirements for the length in time that many roles are posted to promote in consideration of internal candidates and a broader range of external candidates.

In 2024, we fostered deeper talent attraction partnerships with local organizations such as Illinois Solar For All (ILSFA) and military partnerships focused on hiring retiring military service members.

We have grown our nine Sunrun Communities (“Employee Resource Groups”) to promote connection, collaboration and communication among our employees, foster inclusivity, and assist in the development and facilitation of programming to support personal and professional development.

Annually, as part of our impact report on environment, sustainability and governance, we share details on our strategies, focus areas, outcomes achieved and workforce demographics.

1 unchanged sentence

As of December 31, 2024, we had approximately 11,058 full-time employees, inclusive of our active direct-to-home salesforce.

Our front-line sales and installation teams are 80% of our total workforce.

We also engage independent contractors and consultants.

7 unchanged sentences

To reinforce our safety culture of excellence, we have implemented many initiatives, including an expanded fall protection policy;

the implementation of a zero-tolerance policy for violations;

the implementation of a zero-tolerance policy for any life threatening safety violations;

a required recurring competent persons and human factors training;

onsite safety visits from the executive leadership team with each front-line manager;

regular onsite safety visits from our front-line managers and the executive leadership team;

the adoption of a formal rewards and recognition program;

1 unchanged sentence

Available Information

Our principal executive offices are located at 225 Bush Street, Suite 1400, San Francisco, California 94104, and our telephone number is (415) 580-6900.

Our principal executive offices are located at 600 California Street, Suite 1800, San Francisco, California 94108, and our telephone number is (415) 580-6900.

Our website address is www.sunrun.com.

23 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business