Putting Its Home Battery Biz to Use for Hyperscalers: Our Initial Assessment

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Putting Its Home Battery Biz to Use for Hyperscalers: Our Initial Assessment

Compelling. Despite the headline, revenue participate in the PJM backstop auction.

from RUN's growing virtual power plant portfolio remains modest, estimated at approximately Still seeking wholesale market participation

$30Mn (gross), and we do not expect incremental upside to 2026 financials from Wednesday's goals. RUN's participation is tied to ~3GWs

announcement. That said, the mid- to long-term implications are compelling, particularly for RUN's under resi battery program (1/2 of existing

core cash generation metric. With little to no additional opex, RUN's VPP business supports high- batteries are subject to some grid services).

margin recurring cash flows — impactful & financeable today.

~$30 Mn in rev today under these programs

Teaching an Old Dog New Tricks: RUN Is Increasingly a Power Play. With an install base of contrasts with our estimate of ~$100/kw-yr

8.6GW of solar and 4.3GWh of storage capacity, RUN holds a considerable portfolio of underutilized + of potential (or ~$300Mn possibility - 10x

capacity that data centers could readily tap into (focus on 3GW peak of whole portfolio eligible). higher).

Importantly, RUN's capacity portfolio is operating and available today, aligning with hyperscalers'

GOOG appears the likely hyperscaler, givenspeed priorities and marking a clear advantage versus new gas-fired assets that will not come online

their latest DR affiliate is part of a consortium.until the end of the decade. Bilateral capacity deals for hyperscalers in a timely fashion appears a

clear goal, especially if local. Distributed compute another angle to