Sunrun, the leading installer of home solar and energy storage solutions in the U.S., reported a significant decline in subscriber growth. In the first quarter of 2026, the company signed up 25% fewer customers compared to the same period in 2025. Along with this, the addition of solar and battery capacity dropped by 19% and 15% respectively, as stated by the company on Wednesday.
The downturn in sales is attributed to a decline in lead generation and sales activities that began in mid-2025. This was influenced by uncertainty surrounding the “One Big Beautiful Bill Act” and Sunrun’s choice to limit its reliance on third-party installation partners, as explained by Chief Financial Officer Danny Abajian during a recent earnings call.
However, there are signs of recovery as Abajian noted that early 2026 sales activities indicated a potential rebound in growth.
17,665
New subscribers added in the first quarter, a 25% decrease from last year.
282 MWh
Energy storage capacity added, a 15% decrease from last year.
154 MW
Solar capacity added, a 19% decrease from last year.
$49,348
Cost to acquire each new subscriber, an 18% increase from last year.
The OBBBA, signed into law by President Donald Trump in July, phased out a key federal tax incentive for customer-owned solar systems as of the end of 2025, leading to a temporary surge in installations before the deadline.
Many smaller solar companies faced significant losses due to the expiration of the tax credit, but Sunrun, primarily operating on a subscription model, navigated the changes more smoothly. The company’s CEO, Mary Powell, emphasized that nearly all of their sales come from subscriptions, allowing them to manage the transition effectively.
Installations of third-party owned solar systems still qualify for federal tax credits under the new law, and Powell indicated that Sunrun has not been adversely affected by the new changes.
Despite the significant declines in new subscribers and capacity, Sunrun’s latest earnings report was well-received, with shares rising more than 10% since the announcement.
Challenges Ahead from Tariffs and Tax Policies
In their recent filings, Sunrun acknowledged ongoing challenges for both their business and the solar sector. They warned that prices for solar panels may rise and product availability might dwindle due to issues like supply chain disruptions, inflation, tariffs, and geopolitical tensions.
Specific tariffs on solar cells and modules from Southeast Asia have contributed to rising module prices. Additionally, Sunrun highlighted the impact of tariffs on materials like steel and aluminum on their overall costs.
While the U.S. Supreme Court recently annulled some of the broader tariffs implemented during the Trump administration, Powell stated that uncertainty still lingers regarding future tariff actions.
Powell expressed confidence in Sunrun’s ability to handle regulatory challenges tied to compliance with domestic content requirements and other complexities introduced by current laws.
Commitment to Growth in Dispatchable Capacity
Sunrun claims to be the largest operator of distributed power plants in the country, boasting over 251,000 solar and storage systems and about 4.3 GWh of networked storage capacity, a 50% increase from the previous year. The company plans to expand its dispatchable capacity to 10 GWh by the end of 2028.
Powell noted that this infrastructure puts Sunrun at a unique advantage in the industry. The growing storage network offers customers reliable energy at a fixed price, especially as electricity demand increases and utility rates rise. By shifting towards a direct sales model and expanding their workforce, Sunrun aims to enhance the design and management of their energy storage offerings.
Recent statistics show that U.S. electricity prices have surged, reflecting broader inflation trends, with an increase of 9% year over year as reported in February.