Vivint Solar Explained

Vivint Solar
Industry:Renewable energy
Type:Public
Traded As:
Russell 2000 Index component
Defunct: (purchased by Sunrun)
Location:Lehi, Utah
Areas Served:23 states[1]
Key People:David Apalone Bywater (CEO)
Homepage:vivintsolar.com (defunct)

Vivint Solar was an American provider of photovoltaic solar energy generation systems, primarily for residential customers. The company was established in 2011 as an offshoot of home automation and security company Vivint and was headquartered in Lehi, Utah. The company primarily used a power purchase agreement (PPA) business model where Vivint Solar installed and maintained a solar system on a customer's home, then sold power to the customer at an agreed upon rate for a set term. In 2020, the company was purchased by Sunrun, another solar company primarily focused on the PPA business model for $3.2 billion.[2]

At the time of the merger, Vivint Solar had installed a total of 1.29 gigawatts of power for over 188,000 customers[3] in 23 U.S. states (Arizona, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Vermont, and Virginia).[4] [5]

History

Vivint Solar was founded in October 2011 as the solar division of the home automation and security company Vivint.[6] The company marketed solar as part of its Smart Home product, with customers able to track energy consumption to save electricity.[7]

In November 2012, the Blackstone Group acquired a controlling interest in Vivint, Vivint Solar, and 2GIG Technologies for in excess of $2 billion.[8] After the Blackstone acquisition, the solar division became a stand alone company[9] and grew to become the second largest residential solar installer in the United States in 2013, mostly through door-to-door sales.[10] [11] In October 2014, Vivint Solar went public on the New York Stock Exchange.[12] A class-action lawsuit was filed against Vivint in December 2014, with allegations that the company misled investors in their initial public offering by omitting data that showed the company's PPA model was falling out of favor with consumers. Vivint contended that the lawsuit lacked legal merit.[13]

In July 2015, SunEdison announced plans to buy Vivint Solar for US$2.2 billion,[14] but the deal fell through by March 2016 with Vivint Solar suing for a "willful breach" of the planned merger. Shortly after, SunEdison entered bankruptcy.[15]

Vivint Solar struggled after the failed merger attempt with investors noting that while the company had greater access to capital, installation of home solar panels fell substantially with a drop of 21% from late 2015 to late 2016.[16] Also contributing to Vivint's financial troubles was the fact that starting in 2016, the PPA model was losing favor with consumers who increasingly preferred to buy solar power systems outright.[17] Starting in late 2016, Vivint Solar started offering loans and cash sales, leading to 84% year-over-year growth in revenue.[18] Also in 2016, Vivint Solar introduced a new CEO, David Bywater.[19]

The company entered the home energy storage market in 2017, announcing a partnership with Mercedes-Benz Energy to offer home storage batteries.[20] [21] The partnership was announced less than a year later, with LG Chem becoming the company's battery provider.[22]

In 2018, The Attorney General of New Mexico filed a lawsuit against Vivint Solar, Inc. saying it was engaging in unfair and unconscionable business practices including clouding titles to consumers’ homes, fraud and racketeering.[23] Later in 2018, Vivint counter-sued the New Mexico Attorney General.[24] [25]

In July 2020, Sunrun announced that it would acquire Vivint Solar for $3.2 billion.[26] By early October 2020, the acquisition was completed following the approval by regulators and stockholders of both companies, creating a valuation of approximately $22 billion.[27]

Notes and References

  1. News: Vivint Solar Coverage Area . Vivint Solar . Aug 2, 2019 . February 15, 2018 . https://web.archive.org/web/20180215023548/https://www.vivintsolar.com/coverage . live .
  2. Web site: 10 July 2020 . Solar Deal Would Create a New Industry Giant . 10 July 2020 . . 9 July 2020 . https://web.archive.org/web/20200709220402/https://www.nytimes.com/2020/07/06/business/energy-environment/sunrun-vivint-solar.html . live .
  3. News: Hill . Joshua S. . 8 November 2018 . Vivint Solar Reaches 1 Gigawatt Of Rooftop Solar Amidst Strong Q3 & California Expansion . . 16 January 2019 . 17 January 2019 . https://web.archive.org/web/20190117122250/https://cleantechnica.com/2018/11/08/vivint-solar-reaches-1-gigawatt-of-rooftop-solar-amidst-strong-q3-california-expansion/ . live .
  4. Web site: 6 August 2019 . Vivint Solar Secures New $325 Million Credit Facility Lowering Cost of Debt . live . https://web.archive.org/web/20200101031730/https://www.prnewswire.com/news-releases/vivint-solar-secures-new-325-million-credit-facility-lowering-cost-of-debt-300897484.html . 2020-01-01 . 2020-04-23 . www.prnewswire.com . en .
  5. Web site: Vivint Solar Coverage Area . Jul 16, 2017 . Vivint Solar . May 17, 2017 . https://web.archive.org/web/20170517044124/https://www.vivintsolar.com/coverage . live .
  6. Web site: Home security packaged with energy and solar . Feb 11, 2011 . CNET . April 13, 2014 . https://web.archive.org/web/20140413155142/http://www.cnet.com/news/home-security-packaged-with-energy-and-solar/ . live .
  7. Web site: 7 January 2017 . Smart-home innovator Vivint announces new AI assistant and unique Airbnb partnership . 24 January 2018 . 25 January 2018 . https://web.archive.org/web/20180125134544/https://www.digitaltrends.com/home/vivint-smart-home-partners-with-airbnb-vivint-solar-ces-2017/ . live .
  8. News: De La Merced . Michael J. . September 18, 2012 . Blackstone to Buy Control of Vivint, a Home Security Provider . The New York Times . March 5, 2017 . January 25, 2018 . https://web.archive.org/web/20180125074638/https://dealbook.nytimes.com/2012/09/18/blackstone-to-buy-control-of-vivint-a-home-security-provider/?ref=blackstonegroup . live .
  9. Web site: Blackstone $2 Billion Acquisition Ties in Solar and Home Automation . Sep 19, 2012 . 24/7 Wall Street . April 13, 2014 . https://web.archive.org/web/20140413143024/http://247wallst.com/housing/2012/09/19/blackstone-2-billion-acquisition-ties-in-solar-and-home-automation/ . live .
  10. Web site: VivintKnock! Knock! Solar company wins converts going door to door . Nov 3, 2013 . Reuters . January 1, 2016 . https://web.archive.org/web/20160101141914/http://www.reuters.com/article/us-blackstone-vivintsolar-idUSBRE9A70T420131108 . live .
  11. News: Elon Musk plans crazy 2017 for Tesla, but SolarCity may be the biggest headache . Marketwatch . 2018-03-18 . 2018-01-20 . https://web.archive.org/web/20180120231153/https://www.marketwatch.com/story/elon-musk-plans-crazy-2017-for-tesla-but-solarcity-may-be-the-biggest-headache-2016-12-22 . live . Assis . Claudia .
  12. News: Wang . Ucilia . 1 October 2014 . Vivint Solar Makes Public Market Debut, Shares Up Modestly . Forbes . 19 October 2015 . 16 October 2015 . https://web.archive.org/web/20151016062331/http://www.forbes.com/sites/uciliawang/2014/10/01/vivint-solar-makes-public-market-debut-shares-up-modestly/ . live .
  13. Karl-Erik Stromsta Lawsuits against Vivint Solar 'lack merit', company say, RechargeNews.com 12 December 2014, accessed 03 Aug 2017
  14. News: Fehrenbacher . Katie . 20 July 2015 . Why SunEdison is buying Vivint Solar for $2.2 billion . Fortune . 19 October 2015 . 29 October 2015 . https://web.archive.org/web/20151029071310/http://fortune.com/2015/07/20/why-sunedison-is-buying-vivint-solar-for-2-2-billion/ . live .
  15. Web site: 13 July 2016 . Vivint Solar's $1 Billion Lawsuit Adds to SunEdison Bankruptcy Uncertainty . 20 January 2017 . 2 February 2017 . https://web.archive.org/web/20170202145721/https://www.fool.com/investing/2016/07/13/vivint-solars-1-billion-lawsuit-adds-to-sunedison.aspx . live .
  16. Christian Roselund (2017). Vivint Solar installations decline in Q4, PVMag.com, 16 March 2017; accessed 12 April 2017
  17. Web site: Vivint Solar Is Struggling To Survive (NYSE:VSLR) Seeking Alpha . 2022-06-27 . seekingalpha.com . en . 2022-11-29 . https://web.archive.org/web/20221129052030/https://seekingalpha.com/article/4019808-vivint-solar-is-struggling-to-survive . live .
  18. Web site: 10 November 2016 . Solar Earnings in a Trump World: SunPower, SolarCity, SolarEdge, Vivint . . 18 March 2018 . 18 March 2018 . https://web.archive.org/web/20180318122322/https://www.greentechmedia.com/articles/read/solar-earnings-in-trump-world-sunpower-solarcity-solaredge-sma-vivint#gs.pouDkxw . live .
  19. Web site: 19 December 2016 . Vivint Solar names BYU, Harvard grad as new CEO . . 18 March 2018 . 18 March 2018 . https://web.archive.org/web/20180318182811/https://www.deseretnews.com/article/865669576/Vivint-Solar-names-BYU-Harvard-grad-as-new-CEO.html . live .
  20. Web site: 18 May 2017 . Mercedes-Benz and Vivint Solar partner to compete with Tesla in home energy . . 22 March 2018 . 18 March 2018 . https://web.archive.org/web/20180318183445/https://www.cnbc.com/2017/05/18/mercedes-benz-and-vivint-solar-partner-to-compete-with-tesla-in-home-energy.html . live .
  21. News: Cardwell . Diane . 18 May 2017 . Mercedes-Benz Brings a New Model (Of Battery) to U.S. Homes . The New York Times . 24 January 2018 . 25 January 2018 . https://web.archive.org/web/20180125074738/https://www.nytimes.com/2017/05/18/business/energy-environment/vivint-solar-mercedes-benz-battery.html . live .
  22. Web site: Hoium . Travis . 2018-05-16 . Vivint Solar Is Already Falling Behind in Energy Storage . 2022-06-27 . The Motley Fool . en . 2022-10-03 . https://web.archive.org/web/20221003185230/https://www.fool.com/investing/2018/05/16/vivint-solar-falling-behind-in-energy-storage.aspx . live .
  23. News: Groom . Nichola . 8 March 2018 . New Mexico sues Vivint Solar over sales tactics . Reuters, Mar 8, 2018 . 18 May 2021 . 18 May 2021 . https://web.archive.org/web/20210518224458/https://www.reuters.com/article/us-vivint-solar-lawsuit-idUSKCN1GK2QO . live .
  24. Web site: 20 December 2018 . Vivint Solar files countersuit in New Mexico civil case . Deseret News, Dec 20, 2018 . 18 May 2021 . 18 May 2021 . https://web.archive.org/web/20210518224458/https://www.deseret.com/2018/12/20/20661676/vivint-solar-files-countersuit-in-new-mexico-civil-case . live .
  25. Web site: VIVINT Solar Press Release . 2020-05-12 . 2020-09-23 . https://web.archive.org/web/20200923222258/https://www.vivintsolar.com/newsroom/press-releases/vivint-solar-files-lawsuit-against-attorney-general-balderas . live .
  26. News: Penn . Ivan . July 10, 2020 . Solar Deal Would Create a New Industry Giant . . July 10, 2020 . July 9, 2020 . https://web.archive.org/web/20200709220402/https://www.nytimes.com/2020/07/06/business/energy-environment/sunrun-vivint-solar.html . live .
  27. News: October 13, 2020 . Sunrun Acquires Vivint Solar Creating a Valuation of $22B . en-US . . Zacks Equity Research . October 13, 2020 . October 15, 2020 . https://web.archive.org/web/20201015051918/https://finance.yahoo.com/news/sunrun-acquires-vivint-solar-creating-142902863.html . live .

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Vivint Solar".

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