Sunrun Inc. RUN recently entered into a business tie up with France-based fashion house, CHANEL, to offer extended solar access for low-income communities. Per this partnership, Sunrun and CHANEL will install approximately 30 megawatts (MW) of solar energy systems across California, which will result in an average family energy cost savings of $40-$50, per month, thereby benefiting almost 30,000 residents.
Buoyed by the optimism of this news release, Sunrun’s shares gained 7.7% to reach $66.46 on Sep 25, following the announcement on Sep 23.
Benefits of the Partnership
Sunrun has been striving to make solar energy accessible to everyone, particularly those communities that are most impacted by pollution yet lack the economic resources to afford clean energy. In 2018, the company launched an expansion of its low and moderate-income solar offering.
The company plans to develop a minimum of 100 MW of solar power on affordable multi-family housing, where 80% of tenants fall below 60% of the area median income, over the next decade in California. We believe the latest partnership is a step forward taken by Sunrun toward achieving this target.
Moreover, CHANEL, committed to reduce carbon emissions across its entire value chain, has invested $35 million in this joint venture with Sunrun. Such investments play a vital role in boosting Sunrun’s growth trajectory.
Global Solar Boom Boosting Partnerships
Per the International Renewable Energy Agency (IRENA), global electricity generation from solar energy is expected to increase to nearly 360 GW per year by 2050 from the current level of 109 GW. Consequently, solar players like Sunrun are collaborating with other companies for sizable global expansion to make the most of the available opportunities.
In September 2019, Sunrun entered into a partnership with Enphase Energy ENPH, under which the latter started to supply its seventh-generation IQ microinverters to Sunrun for installations at its residential solar projects.
More recently, in July 2020, Enphase announced a strategic partnership with SunPower SPWR to produce the new Enphase Energized Maxeon AC Module based on its seventh-generation IQ microinverters.
In August 2020, JinkoSolar JKS entered into a strategic partnership with engineering, procurement and construction firm Shanghai Electric for supplying 1 gigawatt of its bifacial modules.
Price Performance & Zacks Rank
Sunrun’s stock has surged 297.8% in the past year compared with the industry’s growth of 119.8%.
The company currently holds a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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