Is Sunrun (RUN) Halal? 2026 AAOIFI Analysis
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AAOIFI screening result
RUN: Non-compliant
Residential solar is a permissible business activity, but Sunrun's interest-bearing debt is more than five times its market capitalization and fails the 30% limit decisively.
Based on Halalytic's AAOIFI 30/30/5 screen dated July 11, 2026, Sunrun (RUN) is non-compliant. This is a dated screening snapshot, not a permanent fatwa: company filings, market capitalization, and scholarly analysis can change the result.
What does Sunrun do?
Sunrun sells and finances residential solar and battery-storage systems, with many customers choosing subscription or power-service arrangements. Clean-energy services are generally permissible. However, the model requires substantial upfront capital and uses project financing, securitizations, and other borrowing to fund installed systems.
Primary company source: Sunrun investor relations.
RUN AAOIFI screening breakdown
| Screen | Result | AAOIFI limit | Status |
|---|---|---|---|
| Interest-bearing debt / market cap | 500.36% | Below 30% | Fail |
| Cash and interest-bearing securities / market cap | 23.25% | Below 30% | Pass |
| Non-permissible income / revenue | 0.00% | Below 5% | Pass |
Business activity: Pass · Sector: Technology · Industry: Residential solar and energy storage. The income screen uses reported interest income as a proxy when available.
Why the result can change
The debt screen is not a borderline call: at 500.36%, it is far beyond AAOIFI's limit. Even a major increase in market capitalization would leave substantial distance to cover unless debt also fell. Investors should distinguish the environmental benefit of solar power from the permissibility of the financing structure used to own and deploy the assets.
- Project debt, securitizations, and warehouse financing
- Interest expense and refinancing needs
- Customer defaults, installation economics, and policy incentives
Investment questions beyond halal status
Passing a Shariah screen does not mean a stock is undervalued, financially safe, or suitable for a particular portfolio. A non-compliant verdict is also not a prediction that the share price will fall.
- Can customer agreements generate returns above financing costs?
- How exposed is Sunrun to higher interest rates?
- Can the company reduce cash burn without slowing installations?