Sunrun and Tesla Partner to Support Texas Power Grid Using Residential Solar-Plus-Battery Systems

Rhea-AI Summary

Sunrun (Nasdaq: RUN), the leading clean energy subscription service provider, has partnered with Tesla Electric to create a customer-driven power plant in Texas using residential solar-plus-battery systems. The program has enrolled over 150 Sunrun customers and aims to dispatch stored solar energy from home batteries to increase electricity reserves during high consumption periods.

This partnership marks Sunrun's first operational aggregated power plant program in Texas, addressing recent grid vulnerabilities and power outages. Participating customers will receive compensation, estimated at $400 per Powerwall for 2024, while retaining energy for backup during outages. Sunrun will earn incremental recurring revenue from the program.

The initiative aligns with ERCOT's efforts to diversify and strengthen the power grid through the Aggregated Distributed Energy Resources Task Force. With nearly one million customers and over 116,000 installed storage systems, Sunrun aims to enhance grid resilience and provide homeowners with energy security and independence.

Positive

• Partnership with Tesla Electric to create a customer-driven power plant in Texas
• Enrolled over 150 Sunrun customers in the aggregated power program
• Customers to receive compensation, estimated at $400 per Powerwall for 2024 participation
• Sunrun to earn incremental recurring revenue from the program
• Aligns with ERCOT's efforts to strengthen the power grid
• Expands Sunrun's virtual power plant operations to Texas

Negative

• None.

Insights

Energy Industry Analyst

This partnership between Sunrun and Tesla Electric represents a significant step towards grid resilience in Texas. The creation of a customer-driven power plant using residential solar-plus-battery systems is innovative and timely, given recent grid challenges. Key points:

• Over 150 Sunrun customers already enrolled, with plans to scale up
• Potential yearly compensation of $400 per Powerwall for participants
• Addresses Texas' grid vulnerabilities exposed by recent extreme weather events

This initiative aligns with ERCOT's efforts to diversify and strengthen the power grid, potentially reducing outage risks and lowering wholesale energy costs. For Sunrun, this represents a new revenue stream and market expansion opportunity in Texas.

Financial Analyst

This partnership has positive financial implications for both Sunrun and Tesla, as well as their customers:

• Sunrun gains incremental recurring revenue from the program
• Increased incentive for customers to choose Sunrun's solar-plus-battery systems
• Tesla benefits from promoting Powerwall sales and its retail electricity service
• Customers can earn up to $400 per Powerwall annually

The program's scalability and Sunrun's market leadership (1 million customers, 116,000 storage systems) suggest significant growth potential. This could lead to improved customer acquisition and retention rates, potentially boosting Sunrun's financial performance in the competitive Texas market.

Environmental Policy Expert

This partnership marks a significant shift towards decentralized, renewable energy in Texas' power infrastructure. Key environmental and policy implications:

• Aligns with ERCOT's Aggregated Distributed Energy Resources pilot program
• Promotes adoption of residential solar and battery storage
• Enhances grid resilience against extreme weather events
• Potentially reduces reliance on fossil fuel peaker plants

By incentivizing homeowners to contribute to grid stability, this model could accelerate the transition to clean energy while addressing Texas' unique energy challenges. It sets a precedent for other states to follow, potentially influencing national energy policy towards more distributed, resilient systems.

Sunrun partners with retail electricity provider Tesla Electric to create a customer-driven power plant in Texas using customers’ solar-plus-battery systems

SAN FRANCISCO, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, announced today that it has expanded its support for the energy grid in Texas with a partnership with Tesla Electric, a retail electricity provider operated by Tesla Energy Ventures LLC, a subsidiary of Tesla, Inc. (Nasdaq: TSLA). The partnership has already enrolled more than 150 Sunrun customers in an aggregated power program and will scale up enrollments while dispatching stored solar energy from at-home batteries to rapidly increase available electricity reserves on the grid during periods of high consumption.

The ongoing partnership marks Sunrun’s first operational aggregated power plant program in the Lone Star State and comes just weeks after Hurricane Beryl caused widespread power outages impacting nearly 3 million homes and businesses. It also comes three years after the state’s devastating and deadly power grid meltdown during the winter storm in February 2021. Since both catastrophic events, the Electric Reliability Council of Texas (ERCOT), the state’s grid operator, has begun adopting ways to diversify and strengthen the power grid, including through the Aggregated Distributed Energy Resources Task Force.

“Texas grid has already experienced a traumatic spring and summer due to weather vulnerabilities and we know the state also needs more power to meet soaring demand on a daily basis. We’re eager to bring Sunrun’s on-demand battery response expertise to help make the grid more resilient against outages,” said Sunrun CEO Mary Powell. “Texas families are increasingly opting to add batteries to their solar installations. On-site energy storage not only provides homeowners peace of mind with outage protection but also enables them to participate in programs like these by contributing to solutions that better the lives of those in their communities.”

Severe weather events and soaring electricity demands in Texas highlight the importance of solar-plus-battery systems for residents seeking greater control, energy security, and independence. Sunrun will enhance these benefits through its partnership with Tesla Electric by enabling residents to receive compensation for sharing energy from their Tesla Powerwall batteries to help stabilize the electric grid for all Texans.

Sunrun customers who enroll will be participating in ERCOT’s Aggregated Distributed Energy Resources pilot program aimed at strengthening grid reliability by networking together customer-sited storage devices to serve as a resource for the wholesale electricity market. Additionally, customer Powerwall batteries will also help to lower the costs of energy at the wholesale level. The resulting energy cost savings will be shared with customers.

Customers will be compensated for their participation in the form of yearly payments, currently calculated at $400 per Powerwall for 2024 participation. In addition, customers will retain a portion of the stored energy in their batteries to provide back-up power to their homes in the event of a power outage. Sunrun will also earn incremental recurring revenue for the program.

Tesla Electric is one of Sunrun’s preferred Retail Electricity Providers for Sunrun customers in Texas because of its attractive rate structures and ability to participate in this power plant program. Sunrun customers with solar panels combined with a Tesla Powerwall battery are eligible to participate once they choose Tesla Electric as their electricity provider.

With nearly one million customers and more than 116,000 installed storage systems, Sunrun has a proven track record of incentivizing customers to support local power grids. Sunrun currently operates more than a dozen power plants across the country, including the largest single-owner virtual power plant program.

About Sunrun
Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun’s innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com

Media Contact
Wyatt Semanek
Director, Corporate Communications
press@sunrun.com

Investor & Analyst Contact
Patrick Jobin
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com

FAQ

What is the partnership between Sunrun and Tesla Electric in Texas?

Sunrun has partnered with Tesla Electric to create a customer-driven power plant in Texas using residential solar-plus-battery systems. The program aims to dispatch stored solar energy from home batteries to increase electricity reserves during high consumption periods.

How many customers has Sunrun (RUN) enrolled in the Texas power program?

Sunrun has enrolled over 150 customers in the aggregated power program in Texas and plans to scale up enrollments.

What compensation will Sunrun (RUN) customers receive for participating in the Texas power program?

Participating customers are expected to receive yearly payments, currently calculated at $400 per Powerwall for 2024 participation.

How does the Sunrun (RUN) and Tesla Electric partnership benefit the Texas power grid?

The partnership aims to strengthen grid reliability by networking customer-sited storage devices to serve as a resource for the wholesale electricity market, helping to stabilize the electric grid and lower energy costs at the wholesale level.

When did Sunrun (RUN) announce its partnership with Tesla Electric for the Texas power grid?

Sunrun announced its partnership with Tesla Electric for the Texas power grid on August 6, 2024.