Vivint Solar, a well-known name in the US solar market for its expanding market penetration and perpetual financial struggles, has landed another round of financing, securing $100 million in new tax equity commitments from two repeat investors for the development of 70 megawatts of residential solar energy systems.
The US residential solar provider primarily makes the news for one of two reasons — either it is coming in or out of financial difficulty, or it has secured yet another round of financing. Occasionally it also announces expansion into yet another state. For Vivint Solar and its investors, life is unfortunately a constant up and down roller-coaster.
Nevertheless, last month, the company was able to report a strong quarterly profit on its first quarter, giving a boost to investors and analysts alike. This week, the company has announced another round of financing, a $100 million series of tax equity commitments from two repeat investors. The investment has been earmarked to enable Vivint Solar to install approximately 70 megawatts (MW) of residential solar energy systems, enough for around 10,000 new residential customers.
“Our capital partners play an essential role in enabling us to grow our residential solar business,” said Stewart Bewley, vice president of capital markets at Vivint Solar. “We are pleased to continue raising project capital from our investor partners and look forward to expanding access to our solar energy systems.”
For a company such as Vivint Solar, new financing investments are vital to cover the up-front costs of solar systems that are then paid off by the customer over a period of time using one of the company’s finance options — be it through a solar loan, a solar Power Purchase Agreement, or a solar lease.
“We’re pleased that our investors continue to trust us with their capital options,” added David Bywater, CEO of Vivint Solar. “This financing reinforces our commitment to achieve sustainable growth and continue to deliver results to Vivint Solar and our investors.”