Renewable energy stocks have experienced a huge run-up in 2020, and Sunrun's (NASDAQ: RUN) has been no exception. The company's stock has gone from a ho-hum performer, delivering about half the returns of the S&P 500 since its IPO until the beginning of 2020, to vastly outpacing the index since then. What is making investors so enthusiastic about this solar innovator, and is the company positioned to live up to their expectations?
Sunrun is finding additional ways to monetize its systems. Image source: Getty Images,
Sunrun is the largest installer and owner of rooftop solar systems in the U.S. It installs and owns about 20% of all the solar systems currently on U.S. homes. The reason Sunrun -- and not the homeowners -- owns all these systems is because it also finances them. Homeowners get to save on their electric bills for little or no cash up front, and Sunrun gets a long-term commitment for monthly payments, or "cash flows."
Source Fool.com