Vivint, the second-largest full-service solar provider behind SolarCity, announced today that it has secured $200 million in tax equity financing that will enable the company to continue growing.
Vivint offers power-purchase agreements, or third-party-owned solar energy systems to home and business owners throughout the United States. The company installs solar panels on customers’ roofs at no upfront costs and then sells the energy they generate to the homeowners at a contracted rate that’s lower than what the local utility company charges.
The power-purchase model is growing and accounts for the majority of new residential solar photovoltaic installations nationwide even though they’re only allowed in certain areas. The model enables homeowners who wouldn’t otherwise be able to afford a big investment in solar panels to go green and save on their utility bills.
Sunrun, another third-party solar provider, consistently publishes information showing that its model is making solar adoption more popular in lower- and middle-income communities than it is in wealthy areas.
Vivint has seen skyrocketing business since 2011.
The trick to growing business for all of these third-party solar companies is finding the financing to make upfront investments in the technology and infrastructure they sell as a service and collect continuing revenue from.
"This new funding reinforces market confidence in our ability to expand our leadership in the residential solar space," said Brendon Merkley, Chief Operations Officer of Vivint Solar. "Since 2011, we have leveraged Vivint's sales and internal infrastructure to build a solar business that has exceeded our installation goals consistently each quarter."
The new financing will enable Vivint to continue growing and installing solar panels on residential rooftops throughout the country. The Utah-based company has an existing network of more than 775,000 customers, according to a press release from Vivint.
“The residential solar market continues to show consistent growth with solar being more affordable than ever,” the release reads.
And that affordability combined with rising utility company rates, create a solid market in which Vivint leaders say the company is poised for more growth.