Sunrun Inc. (NASDAQ:RUN) Q1 2019 Earnings Conference Call Transcript
May 08, 2019 • 05:00 pm ET
Good afternoon, ladies and gentlemen, and welcome to the Q1 2019 Sunrun Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and then instructions will follow at that time. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Mr. Patrick Jobin. Please go ahead.
Thank you, Angela. And thank you for those on the call for joining us today. Before we begin, please note that certain remarks we will make on this conference call constitute forward-looking statements. Although we believe these statements reflect our best judgment based on factors currently known to us. Actual results may differ materially and adversely. Please refer to the Company's filings with the SEC for a more inclusive discussion of risks and other factors that may cause our actual results to differ from projections made in any forward-looking statements. Please also note, these statements are being made as of today, and we disclaim any obligation to update or revise them.
On the call today are Lynn Jurich, Sunrun's Co-Founder and CEO; Bob Komin, Sunrun's CFO; and Ed Fenster, Sunrun's Co- Founder and Executive Chairman. The presentation today will use slides, which are available on our website at investors.sunrun.com.
And now, let me turn the call over to Lynn.
Thanks, Patrick. We are pleased to share with you Sunrun's first quarter results, along with progress against our strategic priorities. In the first quarter, we added more than 11,400 customers representing 86 megawatts of deployment, a 27% year-over-year improvement. We generated $77 million of net present value and created NPV per watt of $1.06 or $8,100 per customer.
For the year, we are reiterating our growth guidance and cash generation of over $100 million, while raising our unit margin and target. These strong results can be achieved while investing in our customer experience and product leadership for long-term differentiation.
We have now installed over 5,000 Brightbox battery systems and continue to expect Brightbox installations to grow over 100% in 2019. We have launched the service in eight states and it represents over 10% of our direct business overall, and more than 25% in California. BrightBox provides customers with backup power and the ability to turn unfavorable rate changes into a benefit by using stored power at high cost time. It also offers Sunrun additional revenue streams through energy services.
As we've stated before, we believe energy services can add an incremental 25% to net value per customer. It also protects us against attempts by incumbents to undermine the value of residential solar. Given the value inherent in distributed solar and batteries, along with the increased competitive advantages they bring, we expect Brightbox to become our standard offering over the coming years.
Sunrun is helping our country decarbonize through our rapidly growing customer base and pioneering work, building the future energy system. Consumer preferences for clean energy they can control and rapid advancements in battery