Vivint Solar

Vivint Solar, Inc. is an American solar energy company headquartered in Lehi, Utah. It is a residential solar provider that designs, installs, and maintains photovoltaic systems.

Vivint Solar
TypeSubsidiary
NYSE: VSLR
Russell 2000 Index component
IndustryEnergy
Founded2011
HeadquartersLehi, Utah
Areas served
23 states[1]
Key people
David Apalone Bywater, CEO
Bryan Christiansen, Chief Operating Officer
Thomas Plagemann, Chief Commercial Officer
ProductsSolar Energy Systems
ParentSunrun
Websitewww.vivintsolar.com

Vivint Solar operates 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).[2][3] It has installed over 188,000 solar panel systems totaling over 1290 MegaWatts of rooftop solar as of March 2020.[4] It uses fleet vehicles carrying the traditional Vivint orange coloration.[5]

Founded in 2011 as an offshoot of Vivint,[6] Vivint Solar went public in 2014.[7] Vivint Solar was publicly traded on the New York Stock Exchange under stock symbol VSLR but since the purchase of Vivint by SUNRUN, its assets fall under stock symbol RUN.

The company is considered to be a green home technology company[8] and is the fastest growing solar energy company in the U.S. which uses the power purchase agreement (PPA) model. This model includes reporting your energy made to the local power company ie PG&E and then you pay the difference of the made and used.[9][10]

In 2016, Vivint Solar introduced a new CEO, David Bywater.[11] In 2017, the company partnered with Mercedes-Benz Energy on home batteries;[12] Vivint Smart Home to track energy consumption to save electricity;[13] and ChargePoint, which provides electric vehicle (EV) charging stations for the home.[14]

History

In October 2011, home automation company Vivint, Inc. started and incorporated a new, solar division of the company, Vivint Solar.[15] In November 2012, the Blackstone Group acquired a controlling interest in Vivint, Vivint Solar, and 2GIG[16] Technologies for in excess of $2 billion.[17] After the Blackstone acquisition, the solar division evolved and became Vivint Solar, LLC., a separate, but related company.[18]

According to GTM Research, Vivint Solar was the number two residential solar installer in the United States in 2013, and maintaining its No. 2 position as of the end of 2016.[19]

In October 2014, Vivint Solar opened for public trading on the New York Stock Exchange.[20] 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.[21] Vivint contended that the lawsuit lacked legal merit.

In February 2015, Vivint Solar broke ground on a new corporate campus in Lehi, Utah near Thanksgiving Point, and began operating from there in May 2016. This five-story steel-construction high-rise is ultra-modern, and provides cafeteria service for its employees like its parent Vivint's corporate headquarters.

In July 2015, SunEdison announced plans to buy Vivint Solar for $2.2 billion USD.[22] In March 2016, Vivint Solar announced that the SunEdison deal had been terminated, and that the company was suing SunEdison for a "willful breach" of the planned merger. SunEdison is in bankruptcy as of January 2017, and Vivint Solar is one of many creditors.[23] A second proposed class action lawsuit was filed in May 2016, arguing that Vivint misled investors about the SunEdison buyout offer.[24]

Due to other financing arrangements after the failed SunEdison negotiations, Vivint Solar was predicted in mid-2016 to enter 2017 stronger than before,[23] but from September 2017 until January 2019 their stock remained around $4 per share in comparison to a high of about $15 in 2015. In 2020 their stock price surpassed $15.[25] Analysis from early 2017 found that while Vivint Solar had greater access to capital, actual installation of home solar panels fell substantially with a drop of 21% from late 2015 to late 2016.[26] In 2017, the company expanded to 20 states.[27] Vivint Solar has installed 100,000 solar energy systems as of February 2017.[28]

In July 2020, Sunrun acquired Vivint Solar for $3.2 billion.[29]

Technology

Vivint Solar's customers can finance a system with a loan, purchase or lease a system, or purchase energy based on a long-term contract—a PPA. With a loan or cash sale, customers own the panels after paying for the installation outright or securing financing. In the PPA structure, customers pay a fee per kilowatt hour based on the amount of electricity the solar energy system actually produces. In the lease structure, the customer's monthly payment is fixed based on a calculation that takes into account expected solar energy generation. The lease includes a production guarantee under which Vivint Solar agrees to make a payment to the customer if the leased system does not meet the guaranteed production level.[30][31][32][33]

Most of Vivint Solar's growth as of 2013 had come from door-to-door sales.[34]

During 2016 the PPA model was losing favor with consumers who increasingly preferred to buy solar power systems outright rather than lease them or engage in PPAs. This change has contributed to Vivint's financial troubles.[35]

During Q3 of the 2016 calendar year, Vivint Solar started offering loans and cash sales, and recorded 84% year-over-year growth in revenue that quarter.[36]

Products

In 2017, Vivint Solar expanded its products beyond solar panels to energy storage, EV charging and smart energy management. It announced partnerships with Mercedes-Benz Energy to offer home storage batteries, Vivint Smart Home to integrate energy consumption tracker and ChargePoint to charge electric vehicle (EVs) at home. As Mercedes-Benz was not able to fulfill some of Vivint Solar's requirements, LG Batteries became the new partner.

The company's Fully Integrated Solar allows customers to purchase a Vivint Solar rooftop solar system, a ChargePoint Home electric vehicle charger, an LG storage home battery and Vivint Smart Home intelligent energy management.[37]

Controversy

In 2018, The Attorney General of New Mexico filed lawsuit against Vivint Solar, Inc. saying it was engaging in unfair and unconscionable business practices including clouding titles to consumers’ homes, fraud and racketeering.[38]

Later in 2018, Vivint counter-sued the New Mexico Attorney General who was then under investigation for a pay-to-play scandal involving the original lawsuit against Vivint.[39]

References
  1. "Vivint Solar Coverage Area". Vivint Solar. Retrieved Aug 2, 2019.
  2. Inc, Vivint Solar (6 August 2019). "Vivint Solar Secures New $325 Million Credit Facility Lowering Cost of Debt". www.prnewswire.com. Archived from the original on 2020-01-01. Retrieved 2020-04-23. Vivint Solar operates in 23 states […]
  3. "Vivint Solar Coverage Area". Vivint Solar. Retrieved Jul 16, 2017.
  4. Hill, Joshua S. (8 November 2018). "Vivint Solar Reaches 1 Gigawatt Of Rooftop Solar Amidst Strong Q3 & California Expansion". CleanTechnica. Retrieved 16 January 2019.
  5. Basich, Greg (January 5, 2012). "Vivint Launches Fleet for New Solar Division". Automotive Fleet.
  6. "Home Security Firm Enters Solar Market With $75M Fund". Forbes. Retrieved Oct 19, 2011.
  7. "Vivint Solar prices IPO at $16, the low end of the range". Renaissance Capital IPO Center. Archived from the original on 2015-02-18. Retrieved 19 October 2015.
  8. "Vivint Recognizes National Green Week Through Energy-Saving Solar and Home Automation". Business Wire. February 4, 2013.
  9. "Vivint Solar Offers Affordable Solar Energy Solutions in Two New California Markets". Business Wire. November 29, 2012.
  10. Tempesta, Matt (February 23, 2013). "Saugus sees sudden spike in solar installations". The Daily Item.
  11. "Vivint Solar names BYU, Harvard grad as new CEO".
  12. "Mercedes-Benz and Vivint Solar partner to compete with Tesla in home energy".
  13. "Smart-home innovator Vivint announces new AI assistant and unique Airbnb partnership".
  14. "Vivint, ChargePoint to pair home solar with EV charging".
  15. "Home security packaged with energy and solar". CNET. Retrieved Feb 11, 2011.
  16. http://2gig.com/
  17. De La Merced, Michael J. (September 18, 2012). "Blackstone to Buy Control of Vivint, a Home Security Provider". The New York Times.
  18. "Blackstone $2 Billion Acquisition Ties in Solar and Home Automation". 24/7 Wall Street. Retrieved Sep 19, 2012.
  19. "Elon Musk plans crazy 2017 for Tesla, but SolarCity may be the biggest headache".
  20. Wang, Ucilia (1 October 2014). "Vivint Solar Makes Public Market Debut, Shares Up Modestly". Forbes. Retrieved 19 October 2015.
  21. Karl-Erik Stromsta Lawsuits against Vivint Solar 'lack merit', company say, RechargeNews.com 12 December 2014, accessed 03 Aug 2017
  22. Fehrenbacher, Katie (20 July 2015). "Why SunEdison is buying Vivint Solar for $2.2 billion". Fortune. Retrieved 19 October 2015.
  23. http://www.fool.com/investing/2016/07/13/vivint-solars-1-billion-lawsuit-adds-to-sunedison.aspx
  24. http://www.rosenlegal.com/cases-875.html
  25. http://www.nasdaq.com/symbol/vslr/interactive-chart
  26. Christian Roselund (2017). Vivint Solar installations decline in Q4, PVMag.com, 16 March 2017; accessed 12 April 2017
  27. "Vivint Solar Beats Expectations In Q2 & Continues Upward Trend".
  28. "Vivint Solar & ChargePoint Announce Fully Integrated Solar Residential Energy Management Solution".
  29. "Solar Deal Would Create a New Industry Giant". nytimes.com. 10 July 2020. Retrieved 10 July 2020.
  30. Castle, Stephen (October 20, 2011). "Vivint Offers Solar Panels—No Money Down". Electronic House.
  31. Burns, Matt (October 18, 2011). "Vivint Solar Announces $75m Partnership With U.S. Bancorp, Expansion Into Three New Markets". TechCrunch.
  32. "Vision of Vivint Solar". Vimeo. Retrieved May 18, 2013.
  33. Serra, Tanguy. "Solar Leasing". Alternative Energy eMagazine. Retrieved May 18, 2013.
  34. "VivintKnock! Knock! Solar company wins converts going door to door". Reuters. Retrieved Nov 3, 2013.
  35. Vivint Solar Is Struggling To Survive, SeekingAlpha.com, Nov 4, 2016, accessed Aug 3, 2017
  36. "Solar Earnings in a Trump World: SunPower, SolarCity, SolarEdge, Vivint". greentechmedia.com. 10 November 2016.
  37. https://www.nytimes.com/2017/05/18/business/energy-environment/vivint-solar-mercedes-benz-battery.html
  38. Citation Needed
  39. https://www.vivintsolar.com/newsroom/press-releases/Vivint-Solar-Files-Lawsuit-against-Attorney-General-Balderas. Missing or empty |title= (help)
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