The downstream solar (TAN) business is all about capturing market share. Because solar lease contracts and power purchase agreements (or PPAs) typically last for 20 years, a company with a higher market share in the mature stage could get more revenue than a company with less market share.
For 2Q16, Sunrun reported $122.5 million in revenue compared to $72.7 million in 2Q15. The combined 2Q16 revenue of SunPower’s residential and commercial segments’ revenues (Sunpower’s revenue from its power plant business isn’t included in this comparative analysis) rose from $215.2 million in 2Q15 to $297.1 million in 2Q16.
Vivint Solar reported revenue of $34.9 million in 2Q16 compared to $16.1 million in 2Q15. SolarCity’s 2Q16 revenue came in at $185.8 million compared to $102.8 million in 2Q15.
Higher sales and a rise in the total MW of energy systems placed in service resulted in higher 2Q16 revenue growth for VSLR compared to its peers.
On a YoY (year-over-year) basis, VSLR’s revenue more than doubled—a rise of ~117%—in 2Q16. SolarCity’s and Sunrun’s revenues rose 81% and 69%, respectively, in 2Q16 on a YoY basis.
Revenue per watt installed
When 2Q16 revenues are considered on a per-watt basis, SunPower has the highest revenue per watt installed at $2.30, followed by Sunrun’s $1.88. SolarCity’s revenue per watt installed came in at $0.92 compared to Vivint Solar’s $0.57.
Lower revenue per watt represents aggressive pricing. On a YoY basis, Vivint Solar’s revenue per watt installed rose 135%, the highest among its peers. The revenues per watt installed by SunPower, Sunrun, and SolarCity rose 11%, 9%, and 70%, respectively.
In the next article, we’ll look at the cost performances of major downstream players in 2Q16.