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  "docSlug": "00da6c52307d",
  "documentTitle": "Sunrun Inc. (RUN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2022-07-28 00:00:00",
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  "notes": "The chart compares Sunrun's creation cost against NREL residential PV installed cost benchmarks.",
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      "kind": "callout",
      "text": "However, RUN's Creation Cost decreased only 12% over the period from 2015-2020, exceeding industry costs by $1.66 per watt in 2020.",
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      "kind": "chart",
      "text": "Industry Installed Costs vs. Sunrun Creation Cost",
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      "text": "Price per Watt: $1.66",
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      "kind": "paragraph",
      "text": "The Cost Approach is meant to measure the actual cost to build the PV System, and incorporates hard costs, certain soft costs, and a profit margin. However, RUN's self-reported hard costs seem significantly higher than industry norms.",
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      "kind": "paragraph",
      "text": "Industry cost deflation highlights RUN's outlier status. Panels, inverters, and other solar components became cheaper over the period, declining 16%. However, RUN's Creation Cost decreased only 12% over the period from 2015-2020, exceeding industry costs by $1.66 per watt in 2020:",
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      "kind": "paragraph",
      "text": "RUN's business objective appears to be to enter into as many PPAs as possible and mark them at the inflated rates.",
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      "kind": "source-note",
      "text": "Sources: RUN Supplemental Cost Memos, FY2017-FY2019; RUN Earnings Press Releases, Q1 - Q4 2020; NREL U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks: Q1 2016 - Q1 2021.",
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      "kind": "title",
      "text": "RUN's Hard Cost Structure Seems High Compared to the Industry, Implying an Even Lower Cost Approach Valuation",
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      "kind": "title",
      "text": "Figure 4: RUN Creation Costs Have Fallen Slower than the Industry and Remain Elevated",
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