If you’re thinking about adding a rooftop solar system to your home, you’ve probably come across the name Sunrun. Started in 2007, the San Francisco-based company has grown into the largest solar company in the U.S., with roughly 16% of the residential market.
The solar industry is no stranger to fly-by-night operations, which is why our experts at the Good Housekeeping Institute say it’s important to go with an established brand with a proven track record. With nearly 1 million solar installations to date, Sunrun has claim to both. Still, adding solar to your home is a major investment, so you want to make sure you team up with the right partner for your needs. With that, our experts worked alongside home energy professionals to put together this explainer, answering the essential questions to determine if Sunrun is the right solar provider for you.
Sunrun pros & cons at a glance
Pros
- Makes it possible go solar with little upfront cost
- Maintenance and repairs are covered
- Optional accessories, including battery storage and EV chargers
Cons
- Lower return on investment over the long term
- Less control over choice of panels and other equipment
- Lease contracts can make selling your home a bit trickier
How does Sunrun differ from other solar companies?
It used to be that homeowners who wanted to go solar had to purchase rooftop panels and all the necessary accessories (mounting rack, inverter, electrical cables, etc.) through a solar company, which also handled the installation. Sunrun recognized that the steep initial cost of this approach was keeping tens of millions of U.S. homeowners on the sidelines. So the company pioneered a new “solar as service” model, whereby homeowners lease the solar system through Sunrun and pay a fixed monthly fee, just like leasing a car. Under the terms of the contract, which is usually for 20 or 25 years, Sunrun owns all the equipment and is responsible for any maintenance or repairs.
How does Sunrun’s process work?
After requesting a free quote through the website, an in-house Sunrun advisor will schedule a virtual consultation to iron out the details of your solar panel system design. This will include a review of recent utility bills to determine how much energy your home currently consumes, along with any projected changes in the future (for example, the plan to purchase an electric vehicle or a heat pump, which would drive up your electricity needs). The advisor will also go over your savings goals as well as any preferences you might have related to aesthetics.
Based on these inputs, your Sunrun advisor will draw up the lease contract, also known as a power purchase agreement (PPA). Sunrun will then secure any permits or approvals required by your city for the project. Then they’ll schedule the installation, which will probably be completed in a single day, though it might be a few weeks before you receive permission to operate (PTO) from your utility company, allowing you to flip the switch on the system and start harnessing the sun’s power for your home.
One thing to note: Sunrun chooses all the equipment for your system. Many customers like it this way, since it saves them from having to research the vast array of solar panels and inverters on the market. Plus, as Chance Allred, chief experience officer at Sunrun, points out, “since we own everything, it’s in our best interest to put the best, most reliable equipment on our customers’ homes.” Still, if you’re the kind of person who likes to geek out on this stuff, or you want to make sure you’re getting the absolute best of the best for your home, solar leasing is probably not for you.
Where does Sunrun operate?
Sunrun serves the 19 states below, plus Washington D.C. and Puerto Rico.
Northeast: Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, Pennsylvania, Rhode Island and Vermont
Southeast: Florida and South Carolina
Midwest: Illinois and Wisconsin
Southwest: Arizona, Colorado, Nevada, New Mexico, and Texas
West: California and Hawaii
What are the benefits of Sunrun’s solar leasing model?
Sunrun is great for homeowners who want to go solar but can’t afford the upfront cost, which even with federal tax credits, averages about $22,000 nationwide. That’s according to the latest data from EnergySage, a solar marketplace (and 2023 GH Home Reno Award winner) that helps consumers shop for home energy solutions.
The leasing model allows more people to take advantage of the many benefits of solar. Maybe you want to reduce your carbon footprint by switching from fossil fuels to clean energy (the savings in greenhouse gas emissions by Sunrun solar installations since its inception is equivalent to taking 36.6 million cars off the road). Others reasons include if you want to take advantage of the high-tech benefits of electrification (more on that below, where we get into battery storage) or if you’re on a fixed income and like the idea of paying the same amount each month for energy, especially in the face of rising electricity costs.
Peace of mind is another major advantage of Sunrun’s solar-as-service model. Since the company owns all the equipment, they’re on the hook if anything goes wrong with it. Sunrun also handles any maintenance requirements. We also like the company’s performance guarantee, which says in writing that if the solar panels don’t produce as much power as expected, they’ll issue a refund each month to make up the difference.
What are the downsides of Sunrun to consider?
If your goal of switching to solar is to save as much money as possible, solar leasing is not the best option. Though Sunrun says that for most customers, their lease payment is less than what they spent previously on energy, the potential long-term savings are much higher with a solar purchase. “That’s especially true if you’re able to pay cash for the system, as opposed to financing it,” says Spencer Fields, director of insights at EnergySage. In that scenario, the savings over 25 years could be as high as $90,000; a solar lease won’t deliver anywhere near that kind of return. (We should note that Sunrun does also sells solar systems to homeowners, including through a partnership with Costco that gives members a 10% discount on the equipment costs, but it’s a much smaller part of their business.)
The other issue with solar as service is that if you end up selling your home, some buyers might balk at the idea of taking over the lease. Sunrun stands behind the 98% transfer success rate of its Service Transfer team, which is dedicated to facilitating the process. It’s also worth noting that solar panels will almost certainly add to the value of your home, according to several industry reports, including one from the real estate company Zillow, which found that “homes with solar-energy systems sold for 4.1% more on average than comparable homes without solar power.” Still, it’s important to know going into a solar lease agreement that any prospective home buyers down the road will need to agree to take over the contract.
How much does a Sunrun solar system cost?
Many factors impact price, including the size of the system and the complexity of your roof. But the average cost of a Sunrun project, according to a 2023 report by Lawrence Berkeley National Laboratory, is just over $4 per watt. A typical Sunrun installation generates 7,500 watts, putting the average cost at $30,000. However, this doesn’t take into account federal tax credits, which cover 30% of the cost. And don’t forget that most Sunrun customers choose to lease their system, for as little as $0 down.
What other solar products & services does Sunrun offer?
Since 2016, Sunrun has also offered solar battery storage. This is another big part of the company’s value proposition to consumers, since battery storage had been a kind of missing link in the whole rooftop solar equation. By adding a battery into the mix (Sunrun partners with both Brightbox and Tesla Powerwall), you can store power generated by your rooftop panels and use it during a power outage caused by extreme weather, wildfire or some other event. Also, if you still get some power from the utility company and it offers time-of-use pricing, you can program the battery to deliver power to parts of the home during off-peak hours.
Sunrun also has a partnership with Span, a smart electrical panel that our experts awarded a 2022 Good Housekeeping Award on the strength of its ability to give homeowners more control of their home’s energy usage. “Energy used to be a black box for homeowners.” says Allred. “Our array of solar products, including smart features through the mySunrun app, creates a transparency that lets homeowners know everything that’s going on with their house and make smarter decisions based on the information.”
Sunrun has also started offering EV chargers, though only for purchase. The $1,749 cost includes all the necessary hardware, up to 20 feet of conduit and installation. To help offset the cost, you might be eligible for a tax credit under section 30C of the IRA.
Does Sunrun offer warranty coverage?
If you lease your solar system through Sunrun, maintenance and repairs are covered for the life of the contract. If you purchase through Sunrun, the company offers various packages with different warranties. The panels themselves are usually covered for 10 years, though coverage can be as high as 25 years. There’s also a bumber-to-bumper warranty that covers all equipment replacement and system repairs, including parts and labor, plus the guarantee that roof penetrations will remain watertight, for a full decade.
What’s the bottom line on Sunrun?
Sunrun has been a boon to the solar industry by making rooftop panels accessible for close to 1 million U.S. homeowners. If you want to join the clean energy revolution but can’t afford to purchase a rooftop system, you should consider a solar lease from Sunrun. You won’t save as much money over the long haul as you would by buying the system outright. But there are other benefits that our experts say make it a smart upgrade, like the ability to add backup power to your home to protect against power outages. Plus, as the home electrification trend continues, you’ll be set up to take advantage of the many clean, cost-effective technologies that are coming down the pike.
Why trust Good Housekeeping?
Dan DiClerico has covered the renewable energy market for nearly 25 years, working closely with agencies like the Office of Energy Efficiency & Renewable Energy and Lawrence Berkeley National Laboratory, as well as leading brands in the alternative energy space. He also keeps up with the latest innovations by attending trade shows and industry events. At the Good Housekeeping Institute, Dan oversees the testing and evaluation of any alternative energy equipment that passes through the Lab. He also oversees GH’s annual Home Renovation Awards, which surfaces many of the latest innovations in energy efficiency.
Having written thousands of product reviews and how-to articles on all aspects of home ownership, from routine maintenance to major renovations, Dan (he/him) brings more than 20 years of industry experience to his role as the director of the Home Improvement & Outdoor Lab at the Good Housekeeping Institute. A one-time roofer and a serial remodeler, Dan can often be found keeping house at his restored Brooklyn brownstone, where he lives with his wife and kids.
