Sunrun Has Access to $80 Million That Had Been With SVB, CEO Says

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–Sunrun Inc., America’s biggest rooftop solar company, said it can tap its cash at Silicon Valley Bank and has good access to capital despite solar investors’ concerns about rising rates after the collapse of the startup lender.

Sunrun had access to the $80 million in deposits at the bank as of Monday morning after federal financial regulators stepped in, Chief Executive Officer Mary Powell said in an interview Monday at Bloomberg’s bureau in San Francisco. The company had $953 million in cash at the end of 2022.

“We have really good access to capital,” Powell said, pointing to other financial institutions that have reached out following the bank’s collapse. “We absolutely were in a state where we could continue to operate.”

SVB’s collapse adds to the rooftop industry’s concerns about the effects of higher capital costs. The industry already was grappling with higher interest rates. Now, there’s a chance the cost of debt could increase if other lenders temporarily exit the market.

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That could weaken the edge rooftop companies have gained over traditional utility monopolies, which have sharply increased power bills in recent months.

“It’s not SVB disappearing per se,” said Joe Osha, an analyst at Guggenheim, in an interview Monday. “It’s if other lenders pull back, too.”

Powell said she expects choppiness for the next four to six weeks following the “shock wave” caused by SVB’s quick descent. Despite the short-term market turmoil, Powell said she expects Sunrun’s solar and battery systems to offer savings to utility customers who are facing increasing energy bills.

The company’s shares rose 2.6% on Monday after slumping the most in nine months Friday on its exposure to SVB.