Sunrun announced financial results for the second quarter ended June 30, 2018.
"We continue to gain share, installing a record amount of solar energy and home batteries this quarter, driven by over 40% growth in our direct business," said Lynn Jurich, Sunrun's chief executive officer. "We have now delivered clean, resilient and affordable energy to more than 202,000 customers. Given our market leadership position and enormous opportunity for growth, we are investing heavily to strengthen our competitive advantages in customer acquisition and experience."
Adoption of New Accounting Standards
On January 1, 2018, Sunrun adopted FASB's new accounting standards for contracts with customers ("Topic 606") and lease accounting rules ("ASC 842"), using retrospective methods. Adoption requires that prior financial results are recast to reflect the new standards. Unless otherwise specified, financial results for both the second quarter of 2018 and the second quarter of 2017 are presented in this release under Topic 606 and ASC 842. The financial results for the second quarter of 2017 may differ from those previously reported.
Key Operating Metrics
In the second quarter of 2018, MW deployed increased to 91MW from 76MW in the second quarter of 2017, a 20% year-over-year increase.
Creation Cost per watt was $3.12 in the second quarter of 2018 compared to $3.37 in the second quarter of 2017, an improvement of 7% year-over-year. The presentation of Creation Cost for the second quarter of 2017 remains as previously reported, as the calculation due to the adoption of the new accounting standards and the resulting recast financials would have resulted in immaterial changes in the Creation Cost for that period.
NPV per watt in the second quarter of 2018 was $0.98 compared to $1.10 in the second quarter of 2017.
NPV created in the second quarter of 2018 was $77 million, a 4% increase from $74 million in the second quarter of 2017. Project Value per watt was $4.10, compared to $4.47 in the second quarter of 2017.
Gross Earning Assets as of June 30, 2018 were $2.6 billion, up $684 million, or 36% since June 30, 2017. Net Earning Assets as of June 30, 2018 were $1.3 billion, up $195 million, or 18% from the prior year.
As of August 9, 2018, closed transactions and executed term sheets provide us expected project debt capacity into the first quarter of 2019 and tax equity capacity into the second quarter of 2019.
Second Quarter 2018 GAAP Results
Customer agreements and incentives revenue grew 58% year-over-year to $91.6 million. Solar energy systems and product sales increased 9% year-over-year to $78.9 million. Total revenue grew to $170.5 million in the second quarter of 2018, up $39.9 million, or 31% from the second quarter of 2017.
Total cost of revenue was $122.0 million, an increase of 15% year-over-year. Total operating expenses were $205.5 million, an increase of 20% year-over-year.
Net income available to common stockholders was $7.4 million in the second quarter of 2018, compared to $18.3 million in the second quarter of 2017.
Diluted net earnings per share available to common stockholders was $0.06 per share.
Guidance for Q3 and Full Year 2018
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
In Q3, we expect to deploy approximately 100MW.
For the full year 2018, we continue to expect deployments to grow 15% year-over-year.