🔴 Will Sunrun Keep Shining? (w/ Fahad Khalid) | Stock Trade Ideas

TL;DR

Sunrun, a leading solar company, is poised to benefit from the California solar mandate, which requires all single family and multi-family homes of three stories or less to go solar by January 2020. The company is experiencing strong growth and is expected to capitalize on the growing demand for solar installations in California.

Transcript

JAKE MERL: Welcome to Trade Ideas. I'm Jake Merl, sitting down with Fahad Khalid, Chief Executive Officer of Jaguar Analytics. Great to have you back on the show. FAHAD KHALID: Thank you for having me. JAKE MERL: So, what are we looking at today? What's your trade idea? FAHAD KHALID: So, we wanted to bring an idea to this presentation that is go... Read More

Key Insights

• 🪛 The California solar mandate is expected to drive significant demand for solar installations, benefiting companies like Sunrun.
• 💪 Sunrun has a strong market share in California and has been steadily increasing its market share over the years.
• 💗 The company's battery pack product, Brightbox, is expected to experience growing sales as the demand for solar installations increases.
• ✊ Sunrun is actively pursuing opportunities in commercial spaces and businesses, such as the conversion of fossil fuel plants to solar power in LA and New York's transition to coal-free power sources.
• 🏛️ The company's stock has been performing well, with Tiger Global building a significant stake in the company, suggesting positive momentum.
• 😫 While the Federal Tax Credit is set to expire next year, it is unlikely to have a significant impact on consumer buying patterns for solar installations.

Questions & Answers

Q: What is the California solar mandate and how will it impact Sunrun?

The California solar mandate requires all single family and multi-family homes of three stories or less to have solar panels by January 2020. This will significantly increase the demand for solar installations and benefit companies like Sunrun.

Q: What is Sunrun's market share in California and how has it been performing compared to its competitors?

Sunrun currently holds a market share of 15% in California, a significant increase from its 6% market share in 2014. The company has been steadily gaining market share, surpassing Solar City, and is expected to further increase its market share in the future.

Q: How does Sunrun's battery pack product, Brightbox, fit into the company's growth strategy?

Brightbox, Sunrun's battery pack product, has been available for only a year and a half. The company has sold 5,000 battery packs so far. With the California solar mandate and the combination of solar systems and battery packs, the market potential for Brightbox is expected to be significant.

Q: Is Sunrun targeting opportunities in commercial spaces and businesses?

Yes, Sunrun is actively pursuing commercial opportunities. In LA, a fossil fuel plant is being decommissioned and will be converted to solar power. Sunrun aims to secure the contract for this project. Additionally, New York is transitioning to coal-free power sources, opening up another utility contract opportunity for Sunrun.

Summary & Key Takeaways

• Sunrun is expected to benefit from the California solar mandate, which requires all eligible homes to have solar panels by January 2020.

• The company has a commanding market share in California and has been steadily increasing its market share, surpassing Solar City.

• Sunrun's battery pack product, Brightbox, is also expected to gain traction in the market, especially with the increased demand for solar installations.

• The company is also targeting commercial opportunities, such as the decommissioning of fossil fuel plants in LA and New York's transition to coal-free power sources.