New York, February 4, 2026, 15:48 (EST) — Regular session
- Sunrun shares surged roughly 12% in afternoon trading following an update on its battery grid-services division
- Sunrun reported that customer involvement in its “distributed power plant” programs surged over fivefold in 2025
- Traders are focused on Sunrun’s earnings report due Feb. 26, seeking clarity on cash flow and future guidance
Sunrun stock surged roughly 12.2% on Wednesday, last seen trading at $20.72, after the residential solar installer reported strong growth in its battery-backed grid services segment. Shares hit a high of $21.03, with around 12.0 million shares changing hands by mid-afternoon.
This shift is significant as investors seek steadier, less cyclical revenue in U.S. residential solar. Grid services — where customers and aggregators get paid to feed stored energy back into the grid — stand out as one of the few fast-scaling options, assuming utilities continue to ink deals.
Utilities are sounding alarms over tighter supply during peak demand, even as installers wrestle with a market squeezed by rates, financing hurdles, and changing local regulations.
Sunrun announced Tuesday that its “distributed power plant” programs saw participation surge more than fivefold in 2025, now boasting over 106,000 customers enrolled across 17 different initiatives. The company reported dispatching nearly 18 gigawatt-hours of stored energy, peaking at 416 megawatts. Looking ahead, Sunrun aims to have 10 gigawatt-hours of dispatchable capacity ready by the end of 2028. “Sunrun’s distributed power plants hit scale at exactly the same time grid operators needed help meeting energy demand,” CEO Mary Powell said. (Sunrun Inc.)
A distributed power plant, also known as a virtual power plant, links up home batteries to dispatch power during peak demand. Think of it as a tiny power station scattered across thousands of rooftops. Unlike rooftop solar alone, this concept focuses on selling capacity and flexibility back to the grid.
The rally pushed solar-linked stocks higher across the board. Enphase Energy surged roughly 41%, SolarEdge Technologies climbed around 13%, and the Invesco Solar ETF added about 4% during afternoon trading.
According to a separate SEC filing, Sunrun director Lynn Michelle Jurich offloaded 50,000 shares on Feb. 2 under a Rule 10b5-1 plan, which is a pre-set trading schedule for insiders. The shares went for between $18.22 and $19.41, the document revealed. (SEC)
The grid-services sector is still in its infancy. Growth hinges on utility contracts and varies by state regulations, so shifts in pay or sign-ups could stall progress.
Sunrun remains vulnerable to fundamental risks: a spike in borrowing costs could quickly dampen customer demand, while installers face pressure if hardware prices climb, labor tightens, or permitting drags on.
Sunrun is set to release its fourth-quarter and full-year 2025 earnings after the market closes on Feb. 26, followed by a conference call at 1:30 p.m. Pacific time. Investors will focus on cash flow, customer additions, and the potential lift from grid services beyond just installation numbers. (Sunrun Inc.)
