KBRA assigns preliminary ratings to three classes of notes issued by Sunrun Julius Issuer 2023-2. The transaction is collateralized by a diversified pool of 57,731 leases and Power Purchase Agreements (PPAs) associated with residential solar photovoltaic installations (PV Systems), some of which have energy storage equipment. The total aggregate discounted solar asset balance (ADSAB) based on a discount rate of 7.5% (PV7.5 ADSAB), consisting of the discounted payments of the leases and PPAs is approximately $1.02 billion. The securitization share of the ADSAB is approximately $920.4 million.

The three largest geographic concentrations include California, Massachusetts, and New York, which together represent approximately 60.0% of the number of PV Systems and approximately 65.2% of the ADSAB. The portfolio consists of approximately 70.6% PPA agreements and 29.8% lease agreements by ADSAB of customer contracts with monthly payments and approximately 62.8% PPA agreements and 34.0% lease agreements with monthly payments by count. Approximately 3.3% of the contracts by count are fully prepaid. The weighted average original and remaining tenor of the PPAs and leases is 282 months, and 257 months, respectively. The weighted average FICO of the underlying customers of the PV Systems is 741.

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