Sunrun, SK E&S and Affiliates Form Electrification Venture to Create Energy System of the Future
July 29 2020 - 7:44PM
Sunrun Inc. (Nasdaq:RUN), the nation’s leading home solar, battery
storage and energy services company, and SK E&S and other
affiliated companies, a top global energy and technology company,
today announced they have co-invested in a new venture with plans
to electrify the home. This partnership will use the resources and
knowledge base of both well-established companies to advance the
development of a modern energy system.
Using Sunrun’s existing home solar and battery business as a
starting place for establishing long-term customer relationships,
this partnership will execute on its ambitious plans to electrify
the whole home and contribute to Sunrun's mission to create a
planet run by the sun. Sunrun’s 20-plus year customer relationships
offer future opportunities to engage consumers and fully electrify
the home through additional products and services.
“We need to quickly move away from using unreliable, expensive,
and polluting energy sources to power our homes and transportation
system,” said Lynn Jurich, CEO and Co-founder of Sunrun. “Our
partnership with SK Group will help pave the way for a future
where energy consumers have a completely electrified home that is
powered by more reliable, local, affordable, and clean energy from
Sunrun’s rechargeable solar battery systems.”
The initial investments from Sunrun and SK E&S and other
affiliated companies will go toward forming a new company that will
conduct research and development activities to accelerate the
adoption of renewables, the electrification of homes, and the
transition to a connected and distributed energy system. The new
company will initially target the US residential market, and it
expects to expand internationally over time.
“Given the trend toward 3D (decarbonization, decentralization,
digitalization), we have been and will continue to be an active
player in the Energy Solutions field,” said Daejin Choi, Senior
Vice President of Energy Solution Group at SK E&S. “We believe
our partnership with Sunrun can help provide a cleaner, smarter,
brighter energy solution service to end-users.”
The electrification venture will have an initial contribution of
$150 million, with SK E&S and other affiliated companies
investing $75 million in cash and Sunrun investing $65 million in
cash and advisory services valued at $10 million. Each entity
will have equal ownership of the venture. Additionally, SK
E&S will purchase $75 million of Sunrun common stock at a
previously agreed multiple of the 30-day volume-weighted average
price. As of the market close on July 28, this represents $36.15
per share. SK E&S and other affiliated companies and Sunrun
anticipate achieving a return of multiples more than the invested
capital as the venture commercializes solutions that enable a smart
energy system of the future.
About Sunrun
Sunrun Inc. (Nasdaq:RUN) is the nation’s leading residential
solar, storage and energy services company. With a mission to
create a planet run by the sun, Sunrun has led the industry since
2007 with its solar-as-a-service model, which provides clean energy
to households with little to no upfront cost and at a saving
compared to traditional electricity. The company designs, installs,
finances, insures, monitors and maintains the systems, while
families receive predictable pricing for 20 years or more. The
company also offers a home solar battery service, Sunrun Brightbox,
that manages household solar energy, storage and utility power. For
more information, please visit: www.sunrun.com.
About SK E&S
SK E&S, based in Seoul, South Korea, is an affiliate of SK
Group, one of the country’s top three industrial conglomerates with
over $140 billion in annual global revenue and more than 100,000
employees worldwide. SK E&S has completed LNG Value Chain from
upstream to downstream and has secured the largest city gas market
share in the nation. The company is also engaging in district
heating and cooling, gas-fueled electricity generation, LNG import,
and renewable energy, as well as energy solution business. The
company is focusing on the development of overseas businesses and
laying the foundation for its emergence as a comprehensive energy
service provider in the world by, for example, the expansion of the
company’s reach to other global energy markets such as the U.S. For
more information on SK E&S, visit http://www.skens.com/
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and the Private Securities Litigation Reform Act of 1995, including
statements regarding our expectations as to opportunities for the
joint venture to electrify the whole home, expected benefits of the
joint venture, plans for future capital contributions to the
venture, expectation for return on invested capital, and our other
initiatives. The risks and uncertainties that could cause our
results to differ materially from those expressed or implied by
such forward-looking statements include, but are not limited to:
closing the financing transaction described herein; the
availability of additional financing on acceptable terms; changes
in the retail prices of traditional utility generated electricity;
the impact of COVID-19 on the Company and its business and
operations; worldwide economic conditions, including slow or
negative growth rates in global and domestic economies and weakened
consumer confidence and spending; changes in policies and
regulations including net metering and interconnection limits or
caps; the availability of rebates, tax credits and other
incentives; the availability of solar panels and other raw
materials; our ability to attract and retain our relationships with
third parties, including our solar partners; our ability to meet
the covenants in our investment funds and debt facilities; our
continued ability to manage costs associated with solar service
offerings, our business plan and our ability to effectively manage
our growth and labor constraints, and such other risks identified
in the reports that we file with the U.S. Securities and Exchange
Commission, or SEC, from time to time. All forward-looking
statements in this press release are based on information available
to us as of the date hereof, and we assume no obligation to update
these forward-looking statements.
Contacts
Patrick JobinSunrunSVP, Finance & Investor
Relationsinvestors@sunrun.com415-373-5206
Andrew NewboldSunrunDirector of
Communicationspress@sunrun.com816-516-5809
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