Sunrun Inc. (RUN) is experiencing a surge in its stock price following the announcement of a national partnership with Toll Brothers Inc. (TOL). This strategic alliance establishes Sunrun as the exclusive provider of solar power and energy storage for all Toll Brothers homes in California. This collaboration brings clean and reliable energy solutions directly to new home buyers.
The partnership extends beyond California, with a preferred agreement to provide solar power to additional Toll Brothers divisions across the nation. Sunrun will serve as a comprehensive one-stop shop for solar customers in California, handling everything from sales and design to permitting, installation, customer care, and warranty. Homebuyers will also have the option to choose between an EnPhase or Tesla Powerwall 3 battery storage system, providing flexibility and customization.
Seth Ring, executive vice president of Toll Brothers, highlighted the significance of the partnership, stating, “We are pleased to announce this new agreement with Sunrun as our national solar and storage partner, providing our home buyers with state-of-the-art options for clean, reliable power in their new homes.” Toll Brothers has demonstrated a commitment to incorporating solar power into their communities since 2015, and this partnership with Sunrun further solidifies their dedication to innovation and environmental sustainability.
The agreement allows Sunrun to offer their solar products to Toll Brothers homebuyers in other markets as well, either as an optional feature or as an included element financed through the home purchase. In specific markets where third-party ownership is permitted, solar power can be added to the home at no cost to the buyer.
Morgan Stanley analyst Stephen Byrd maintains an Overweight rating on Sunrun and a price target of $35. This optimistic outlook reflects the potential for significant growth and value creation resulting from this partnership.
Sunrun shares were up 3.38% at $19.55 at the time of publication, demonstrating the positive market response to the partnership announcement. This collaboration positions both companies as leaders in the sustainable energy sector, driving the adoption of solar power and advancing the transition to a cleaner energy future.
