Vivint Solar

Vivint Solar was an American residential solar-energy company established in October 2011 as a solar division of Vivint, the home-automation and security business. It was created to extend Vivint's smart-home proposition into household electricity generation, allowing customers to monitor energy use and combine solar production with home-management services. The business was headquartered in Lehi, Utah, and operated primarily in the United States. The company initially concentrated on a power-purchase-agreement model. Under a PPA, Vivint Solar generally financed, installed, owned, and maintained a photovoltaic system at a customer's home, while the customer purchased the electricity generated by the system at an agreed rate over a specified term. This structure reduced the customer's upfront cost and made solar available to households that did not want to purchase equipment outright. Vivint Solar also used leases and, later, expanded into loans and cash sales as consumer preferences and competitive conditions changed. Vivint Solar became a standalone business after Blackstone acquired a controlling interest in Vivint and related companies in 2012. It grew rapidly, relying substantially on direct, door-to-door sales and expanding across U.S. states with favorable solar economics, net-metering policies, or available incentives. By 2013, it was described as the second-largest residential solar installer in the United States. In October 2014, the company completed an initial public offering on the New York Stock Exchange under the ticker VSLR. The company faced strategic and financial pressure after a proposed acquisition by SunEdison collapsed in 2016. The failed transaction was followed by litigation and occurred shortly before SunEdison entered bankruptcy. Vivint Solar also encountered a broader shift in the residential solar market: some consumers increasingly preferred to buy systems with cash or loans instead of entering long-term PPAs. In response, the company broadened its sales and financing options. Revenue grew strongly year over year after the introduction of those alternatives, although installation activity had declined during the preceding period. Vivint Solar expanded beyond photovoltaic generation into residential energy storage in 2017. It announced a partnership with Mercedes-Benz Energy to offer home batteries, but later shifted battery supply to LG Chem. This reflected the company's effort to position solar generation, storage, and smart-home monitoring as related components of a household energy system rather than as an isolated panel-installation service. In July 2020, Sunrun announced an agreement to acquire Vivint Solar in an all-stock transaction valued at approximately $3.2 billion. Regulatory and shareholder approvals were obtained, and the combination was completed in early October 2020. At the time of the merger, Vivint Solar had installed approximately 1.29 gigawatts of solar capacity for more than 188,000 customers across 23 U.S. states. The acquisition ended Vivint Solar's existence as an independent publicly traded company and integrated its operations into Sunrun.

Vivint Solar began in October 2011 as the solar division of Vivint, a company known for home automation and residential security. The division was intended to make solar generation part of a broader smart-home proposition. Customers could install photovoltaic panels and use monitoring tools to follow energy production and consumption. Unlike a conventional equipment retailer, Vivint Solar emphasized financing and long-term service relationships. Its principal early model was the power-purchase agreement. Vivint Solar typically arranged the financing, installation, ownership, and maintenance of a rooftop system, then sold the electricity generated by that system to the homeowner at a contractually agreed price. The model lowered the initial cost for customers and placed system-performance responsibilities with the provider. It also created long-term contracted relationships that were central to the company's growth strategy. In November 2012, Blackstone acquired a controlling interest in Vivint, Vivint Solar, and 2GIG Technologies for more than $2 billion. Following the transaction, Vivint Solar developed into a standalone company rather than remaining simply an internal operating division. It expanded rapidly through direct sales, including extensive door-to-door activity, and by 2013 was characterized as the second-largest residential solar installer in the United States. Vivint Solar went public in October 2014 on the New York Stock Exchange. The offering gave the company access to public capital while also exposing its growth assumptions and financing model to greater investor scrutiny. In December of that year, a class-action lawsuit was filed alleging that the company's IPO disclosures failed to include information indicating that consumer interest in PPAs was weakening. Vivint Solar denied that the claims had merit. In July 2015, SunEdison announced plans to purchase Vivint Solar for approximately $2.2 billion. The proposed merger did not close. By March 2016, Vivint Solar sued SunEdison, characterizing the failure to complete the transaction as a willful breach. SunEdison subsequently entered bankruptcy, and the proposed combination was abandoned. The failed merger was followed by operational and market difficulties. Installation volumes declined substantially from late 2015 to late 2016, while the economics and popularity of residential PPAs came under pressure. Some customers increasingly preferred to own systems outright, either through cash purchases or loans. Vivint Solar responded by introducing and expanding these alternatives. The company appointed David Bywater as chief executive in 2016, and the wider financing range helped produce strong year-over-year revenue growth during the subsequent period. In 2017, Vivint Solar moved into home energy storage. It announced a relationship with Mercedes-Benz Energy to provide residential batteries, linking solar generation with the ability to store electricity for later use. The battery-supply arrangement was later changed, with LG Chem becoming the company's battery provider. The storage initiative reflected an industry-wide movement toward solar-plus-storage systems and greater household energy control. The company also faced legal challenges concerning sales and customer practices. In 2018, the New Mexico attorney general filed suit alleging unfair and unconscionable conduct, including claims involving clouded property titles, fraud, and racketeering. Vivint Solar responded with a countersuit. The litigation became one of the most significant public controversies associated with the brand. Sunrun announced in July 2020 that it would acquire Vivint Solar for approximately $3.2 billion. After regulatory review and approval by the shareholders of both companies, the transaction closed in early October 2020. At completion, Vivint Solar had installed roughly 1.29 gigawatts of capacity for more than 188,000 customers in 23 U.S. states. Its portfolio covered residential solar installations, PPAs, loans, cash sales, maintenance, monitoring, and storage. The merger ended Vivint Solar's independent listing and absorbed its business into Sunrun.

• 2020

  Acquisition by Sunrun

  [1]Vivint Solaren.wikipedia.org

  Sunrun completes its approximately $3.2 billion acquisition of Vivint Solar after regulatory and shareholder approvals.

• 2017

  Home-storage offering announced

  [1]Vivint Solaren.wikipedia.org

  Vivint Solar enters residential energy storage through a partnership initially announced with Mercedes-Benz Energy.

• 2016

  Financing model broadens

  [1]Vivint Solaren.wikipedia.org

  Following pressure on the PPA model, the company expands into solar loans and cash sales and appoints David Bywater as chief executive.

• 2014

  New York Stock Exchange listing

  [1]Vivint Solaren.wikipedia.org

  Vivint Solar completes its public offering and begins trading under the ticker VSLR.

• 2013

  Rapid residential-installation growth

  [1]Vivint Solaren.wikipedia.org

  Vivint Solar becomes one of the largest residential solar installers in the United States, supported substantially by direct sales.

• 2012

  Blackstone acquires controlling interest

  [1]Vivint Solaren.wikipedia.org

  Blackstone acquires control of Vivint, Vivint Solar, and 2GIG Technologies, after which the solar operation develops as a standalone company.

• 2011

  Vivint Solar is established

  [1]Vivint Solaren.wikipedia.org

  Vivint creates a solar division focused primarily on residential photovoltaic systems and smart-home energy monitoring.

A residential distributed-energy provider combining solar installation, customer financing, system maintenance, energy monitoring, and home storage. Its original differentiation centered on low-upfront-cost PPAs and integration with Vivint's smart-home platform.

• Solar generation · 2011

  Residential photovoltaic systems

  Vivint Solar designed and installed rooftop photovoltaic systems for residential customers. The systems were generally supported by ongoing monitoring, maintenance, and customer service. The company often retained ownership under a PPA or lease, while also providing purchase and loan alternatives as the market evolved.

• Solar financing · 2011

  Power-purchase agreements

  Under Vivint Solar's principal early commercial model, the company financed, installed, owned, and maintained a solar system and sold the generated electricity to the homeowner at an agreed rate for a defined contract period. This reduced upfront costs but tied customers to long-term energy-service agreements.

• Solar financing · 2016

  Solar loans and cash sales

  Beginning in 2016, Vivint Solar broadened its commercial model by offering customers the ability to buy systems outright or finance them with loans. These options addressed growing consumer preference for ownership rather than long-term PPAs and helped diversify the company's revenue sources.

• Battery storage · 2017

  Residential energy storage

  Vivint Solar added home batteries to its solar portfolio in 2017. The storage offering was intended to let households retain solar electricity for later use and improve the value of a solar-plus-storage system. The company first announced a relationship with Mercedes-Benz Energy and later identified LG Chem as its battery provider.

• 2018

  New Mexico allegations concerning sales and property practices

  The New Mexico attorney general sued Vivint Solar, alleging unfair and unconscionable business practices, including claims of clouded titles, fraud, and racketeering. Vivint Solar later countersued the attorney general.

  Source

• 2014

  Investor lawsuit over IPO disclosures

  A class-action lawsuit alleged that Vivint Solar's IPO disclosures omitted information suggesting that its power-purchase-agreement model was becoming less attractive to consumers. The company denied that the lawsuit had legal merit.

  Source

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• 2020

  Sale to SunrunM&A

  Background

  Vivint Solar remained a major U.S. residential solar provider, while consolidation was increasing among companies using long-term customer contracts and distributed-energy financing.

  Action taken

  Sunrun agreed to acquire Vivint Solar in a transaction valued at approximately $3.2 billion and completed the deal in early October after regulatory and shareholder approvals.

  Aftermath

  Vivint Solar ceased to operate as an independent publicly traded company and its business was integrated into Sunrun.

  Announced transaction value. $3.2 billion (2020)

  Source

• 2017

  Entry into residential battery storageProduct launch

  Background

  Solar customers were showing increasing interest in storing electricity and managing household energy beyond daytime photovoltaic generation.

  Action taken

  Vivint Solar announced a home-storage partnership with Mercedes-Benz Energy and subsequently changed battery providers to LG Chem.

  Aftermath

  The initiative expanded Vivint Solar's offering from solar generation into solar-plus-storage systems.

  Source

• 2016

  Diversification beyond PPAsStrategy

  Background

  The residential solar market was shifting as some customers increasingly favored owning systems through cash purchases or loans rather than entering long-term power-purchase agreements.

  Action taken

  Vivint Solar introduced loan and cash-sale options in addition to its established PPA model.

  Aftermath

  The company reported 84% year-over-year revenue growth after broadening its financing options, although it continued to face pressure from installation declines and changing market economics.

  Source

• Unconfirmed

  Sunrun announces acquisition of Vivint Solar[2]Sunrun宣布收购Vivint Solarksl.com

  Sunrun announced an all-stock deal valued at around $3.2 billion to acquire Vivint Solar. Both companies' boards approved the deal, while shareholder approval was still pending; completion was expected by year-end.

Read more

1. 1Vivint Solaren.wikipedia.org
2. 2Sunrun宣布收购Vivint Solarksl.com