U.S. Home Solar Leader Sunrun Sees Tailwinds From Batteries and Tax Credits

Sunrun, the largest provider of residential solar systems in the United States, is emerging as a potential beneficiary of consolidation in the home solar market.

The company installs rooftop solar panels and home battery systems, primarily through long-term leasing and subscription-style contracts. This structure lowers upfront costs for customers while providing Sunrun with recurring revenue streams and access to federal tax incentives.

Market leadership and scale

Sunrun currently serves more than one million customers and operates across most major U.S. states. The company accounts for roughly 20% of new residential solar installations nationwide and approximately 40% of the home battery market.

Scale plays a critical role in Sunrun’s economics. Its subscription-based model allows the company to efficiently monetize tax credits and spread installation, financing and servicing costs across a large customer base.

The recent exit or restructuring of competitors such as SunPower and Sunnova has further reduced competitive pressure, creating opportunities for Sunrun to increase market share.

Batteries as a growth driver

Energy storage is becoming central to Sunrun’s strategy. Around 70% of new customers now choose to install battery systems alongside solar panels.

Sunrun accounts for roughly 42% of new residential battery installations in the U.S., reflecting both strong demand and the company’s execution capabilities.

Beyond individual households, Sunrun is expanding its virtual power plant (VPP) programs. These initiatives aggregate stored energy from customer batteries and sell it back to the grid during peak demand periods, turning distributed energy storage into a commercial asset and supporting margins.

Policy and structural tailwinds

Federal policy remains supportive. The 30% investment tax credit for residential solar and battery systems has been extended through 2032, providing long-term visibility for the sector.

At the same time, rising electricity tariffs across many U.S. states are improving the economic case for home solar paired with batteries, particularly in regions prone to grid instability or peak pricing.

Sunrun has also expanded partnerships with utilities, automakers and residential developers, positioning its systems as part of broader energy and mobility ecosystems.

Investment perspective

Sunrun’s combination of market leadership, subscription-based revenues and exposure to energy storage differentiates it from many smaller competitors.

As the U.S. residential solar market consolidates, the company appears well positioned to capture incremental demand, though execution, financing conditions and regulatory developments remain key risks to monitor.

For investors, Sunrun represents a leveraged play on the long-term electrification of households and the growing role of distributed energy resources in the U.S. power system.

This material is for informational purposes only and does not constitute investment advice.