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Vivint Solar

Vivint Solar was an American company specializing in the provision of photovoltaic solar energy generation systems primarily for residential customers, offering full-service solutions that included system design, installation, ongoing monitoring, and maintenance. Founded in 2011 as a subsidiary of the smart home technology firm Vivint, Inc., the company was headquartered in Lehi, Utah, and rapidly expanded to operate in over 20 states, installing 1,294 megawatts of solar capacity by the end of 2019. Vivint Solar went public on the New York Stock Exchange in 2014 under the ticker symbol VSLR, becoming one of the largest pure-play residential solar providers in the U.S. market. In July 2020, Sunrun, Inc., the leading U.S. residential solar and energy storage company, announced its acquisition of Vivint Solar in an all-stock transaction valued at an enterprise value of $3.2 billion, with the deal completed in October 2020 following regulatory and shareholder approvals. Post-acquisition, Vivint Solar was integrated into Sunrun's operations, enhancing the latter's scale, customer base, and national footprint while ceasing to operate as a standalone entity. The company's innovative financing models, such as solar leases and power purchase agreements, helped democratize access to clean energy, though it faced scrutiny over sales practices and customer service in some markets.

Overview

Founding and headquarters

Vivint Solar was established as a division of , Inc., a and security company founded by Todd Pedersen in 1999. Vivint Solar, Inc. was formally incorporated on August 12, 2011, marking the launch of the solar energy initiative aimed at expanding Vivint's offerings into solutions. The division began operations that summer, initially targeting residential markets with leased systems, starting in a test market in . From its inception, Vivint Solar's core focus was to integrate generation with Vivint's existing smart home systems, enabling homeowners to monitor and optimize energy production alongside and features. This approach sought to create a seamless where panels could contribute to overall home , aligning with the growing demand for sustainable technologies in the early . Early operations emphasized residential installations, with plans to scale across the , particularly in high-solar-potential regions. Headquartered in , at 1800 West Ashton Boulevard, Vivint Solar leveraged Vivint's established infrastructure in the region for administrative and operational support. Todd Pedersen, as Vivint's CEO and founder, played a pivotal role in overseeing the solar division's launch, driving the to capitalize on the burgeoning residential solar market and position as a comprehensive provider of energy-efficient home solutions. This strategic move reflected leadership's vision to diversify beyond security into renewables, fostering synergies within the broader Vivint ecosystem.

Current status and integration with Sunrun

Following the completion of 's $3.2 billion all-stock acquisition of Vivint Solar on October 8, 2020, Vivint Solar became a wholly-owned of , enabling the combined company to expand its residential solar footprint significantly. As of September 2025, Vivint Solar's operations have been fully integrated into Sunrun's broader platform, with Vivint's original customer base of over 150,000 systems contributing to Sunrun's growth from approximately 500,000 total customers and 3 of at the time of acquisition to over 1 million customers and more than 8.2 of networked . This integration includes shared technology for system monitoring and customer service, streamlining operations across the combined entity while leveraging Vivint's legacy assets in select regions. Although Vivint branding persists for solar services in some markets under the "Vivint Energy" name, the operational merger into Sunrun's platform is complete, allowing for unified financing models and processes. The acquisition has solidified Sunrun's position as the largest U.S. residential provider, with Vivint's assets enhancing Sunrun's capabilities in customer financing and nationwide , driving annual additions of over 100,000 new customers.

History

Establishment and early development (2011–2014)

Vivint Solar was formed in May 2011 as a division of , Inc., the residential security and company, with the goal of offering integrated solutions to homeowners. was incorporated as a corporation on August 12, 2011, enabling it to focus exclusively on the sales, financing, engineering, installation, maintenance, and monitoring of residential systems. In 2011, Vivint Solar announced its entry into the market with $75 million in tax equity financing from and other investors, which supported the deployment of its initial solar projects. The company's early operations centered on and surrounding states, where it began installing solar systems in late and , primarily targeting existing smart home customers to leverage synergies between generation and features. By December 31, , Solar had deployed 2,669 systems totaling 14.4 megawatts, marking its initial operational footprint. In November , investment funds affiliated with The Blackstone Group acquired a in , Inc., including Vivint Solar, for over $2 billion, providing additional capital to scale operations. Key growth milestones included securing further funding, such as $200 million in tax equity in 2013 to finance residential installations nationwide, and expanding operations across multiple states. By the end of 2013, the company had installed 72.8 megawatts cumulatively, operating in several markets including , , and . Expansion continued into 2014, reaching seven states—Arizona, California, , , , , and —by mid-year, with over 21,921 systems (129.7 megawatts) installed by June 30, 2014. During this period, Vivint Solar developed proprietary monitoring capabilities that integrated performance data with Vivint's platform, using tools like Enphase Energy's microinverter gateways to enable real-time tracking of energy production alongside smart home controls. This integration allowed customers to monitor solar output through the Vivint , optimizing energy use in conjunction with security and automation features.

Initial public offering and expansion (2014–2016)

Vivint Solar completed its on October 1, 2014, listing on the under the VSLR. The company priced 20.6 million shares at $16 each, raising approximately $330 million before discounts, which provided capital for expanding operations and financing solar installations. This IPO valued the company at around $1.5 billion and marked a significant step in transitioning from a privately held entity backed by Blackstone Group to a publicly traded firm focused on residential . Post-IPO, Vivint Solar accelerated its national expansion, increasing its presence from initial markets to operations in 13 states by August 2016, including , , , , , , , , , , , , and . The company grew its customer base rapidly, reaching nearly 69,000 customers by the end of 2015, with cumulative installations totaling 459 megawatts. Revenue for fiscal year 2015 rose to $64.2 million, a 154% increase from $25.3 million in 2014, driven primarily by operating leases and incentives from long-term customer contracts. This growth reflected the company's strategy to scale installations through in-house sales teams and vertically integrated services, including system design, permitting, and maintenance. To support this expansion, Vivint Solar established key strategic partnerships with solar panel manufacturers and financiers. Its primary suppliers as of mid-2014 included Limited, Yingli Green Energy Americas, Inc., and Canadian Solar Inc., enabling reliable procurement for large-scale deployments. In June 2015, the company signed a supply agreement with to further secure high-efficiency panels. On the financing side, Vivint Solar secured tax equity investments and debt facilities, such as a $313 million warehouse facility in August 2016 from lenders including Investec Bank and NY Green Bank, to fund customer acquisitions and system deployments. These collaborations helped mitigate risks and capitalize on federal investment tax credits, allowing the company to install systems for a broader residential market. During this period, Vivint Solar introduced bundled services integrating its offerings with Vivint Smart Home's systems, enabling customers to combine energy generation with smart for optimized usage and cost savings. This , leveraging the shared ownership under , positioned Vivint Solar to differentiate in the competitive residential sector by providing comprehensive home energy solutions.

Challenges and merger attempts (2016–2020)

In July 2015, Vivint Solar announced a definitive merger agreement with and Power valued at $2.2 billion, under which Vivint Solar shareholders would receive $16.50 per share in cash and stock. The deal, intended to combine SunEdison's utility-scale expertise with Vivint Solar's residential focus, was amended in 2015 to reduce the value to approximately $1.82 billion amid SunEdison's financial difficulties. However, the merger was terminated on March 8, 2016, after Vivint Solar cited SunEdison's willful breach of obligations, exacerbated by the latter's Chapter 11 bankruptcy filing earlier that month. The termination triggered significant financial strain for Vivint Solar. Its stock price, which had already declined amid uncertainty, fell over 50% from the merger announcement to the termination date, reaching a record low of $4.03 per share on March 8. The company faced heightened burdens, with equity financing commitments totaling approximately $1.3 billion by the end of to support ongoing deployments, alongside non-recourse that pressured liquidity. Operational challenges compounded these issues, as residential installations slowed due to saturation in key states, regulatory hurdles, and intensifying , leading Vivint Solar to lower its deployment forecasts. To recover, Vivint Solar pursued new financing arrangements throughout 2016. In March, it secured a $200 million revolving asset-based facility from Highbridge Principal Strategies to fund residential projects. This was followed by a $313 million syndicated in August, led by Merrill Lynch, to refinance tax equity funds and support expansion. Despite these efforts, the company expanded its operations to 13 states by mid-2016, including entry into , but encountered headwinds from gradually rising interest rates that increased borrowing costs and squeezed profitability margins in a capital-intensive . Leadership transitioned in May 2016 when CEO Greg Butterfield stepped down, with David Bywater, of parent company Smart Home, appointed as interim CEO to prioritize cost efficiencies and operational streamlining. Bywater's role became permanent in December 2016, as the company shifted focus toward sustainable growth amid persistent market pressures.

Acquisition by Sunrun (2020–present)

On July 6, 2020, announced a definitive agreement to acquire Vivint Solar in an all-stock transaction valued at $3.2 billion, creating a combined entity with an enterprise value of approximately $9.2 billion based on 's share price at the time. The deal received shareholder and regulatory approvals, culminating in the acquisition's closure on October 8, 2020. This transaction followed earlier unsuccessful merger efforts involving Vivint Solar, marking a pivotal consolidation in the residential sector. Immediately following the acquisition, Vivint Solar operated as a of Sunrun, maintaining separate branding and operations to ensure continuity while integration planning commenced. The merger transferred approximately 188,000 Vivint Solar customers and 1.29 gigawatts of solar capacity to Sunrun's portfolio, bolstering the combined company's scale to over 500,000 customers and more than 3 gigawatts overall. This immediate expansion enabled Sunrun to leverage Vivint's direct-to-home sales expertise alongside its own channel partnerships, with initial synergies focused on cross-selling battery storage solutions like the Brightbox system to the expanded customer base. Integration progressed steadily, achieving full operational merger by 2022, at which point Vivint Solar ceased independent activities and was fully absorbed into Sunrun's structure. The enhanced scale from the acquisition contributed to robust financial performance, with Sunrun's full-year revenue reaching $1.61 billion, a 75% increase from $922 million in , driven by higher customer additions and recurring from solar agreements. As of 2025, Vivint Solar's legacy systems and customer contracts continue to underpin Sunrun's operations, supporting approximately 972,000 total subscribers as of September 2025 with no remaining independent Vivint Solar functions. This enduring integration has solidified Sunrun's position as the leading U.S. residential provider, emphasizing long-term and grid services.

Business operations

Products and services

Vivint Solar's core offering consists of residential systems tailored for homeowners seeking to generate clean energy on-site. These systems are custom-designed to offset up to 100% of a household's needs, with typical capacities ranging from 5 to 10 kW to match average U.S. residential patterns. The panels employed are high-efficiency monocrystalline types, primarily sourced from established manufacturers like and , ensuring reliable performance and durability over 25 years or more. The process is managed end-to-end by Solar's certified teams, beginning with a detailed site assessment to evaluate suitability, , and energy requirements. This is followed by system design, submission of permits to local authorities, and coordination for grid interconnection with the utility provider. The full timeline from contract signing to system activation averages 3 to 6 months, for permitting delays and scheduling, though the physical installation itself typically spans 1 to 3 days. To enhance , Vivint Solar provides complementary services such as a dedicated solar monitoring application integrated into the broader Vivint smart home ecosystem. This enables real-time tracking of production, consumption, and system health through a user-friendly on mobile devices, promoting optimized usage and maintenance alerts. Prior to its 2020 acquisition by , Vivint Solar offered optional solutions through partnerships, including LG Chem's RESU batteries for indoor or outdoor mounting to store excess . Post-acquisition, Vivint Solar customers benefit from Sunrun's expanded portfolio, notably the Brightbox battery storage system, which integrates seamlessly with installations to deliver 10-13 kWh of capacity for outage protection and nighttime usage. This enhancement allows stored to power essential home appliances, extending backup duration to 8-12 hours for a typical household.

Financing models

Vivint Solar offered customers several financing options for its residential systems, allowing flexibility in payment structures and ownership. These models were designed to minimize upfront costs while enabling access to , with the company retaining ownership in some cases or transferring it to customers in others. The Power Purchase Agreement (PPA) was a primary offering, under which customers paid a fixed rate for the generated by the , typically ranging from $0.12 to $0.135 per kWh, with an annual escalator of about 2.9%. Vivint Solar owned and maintained the throughout the 20-year initial term, handling all repairs and performance guarantees, while customers benefited from predictable energy costs lower than utility rates and no upfront payment. At the end of the term, customers could renew, purchase the at , or have it removed. In the solar lease model, customers made fixed monthly payments for the use of the system over a 20-year term, with no upfront cost and escalating payments in some agreements to account for . Vivint Solar retained , providing and warranties, but customers did not receive the (ITC) or benefits upon resale. This option appealed to those seeking simplicity without long-term financial commitment to the hardware. For solar loans, Vivint Solar partnered with third-party lenders to offer $0-down financing with terms typically spanning 10 to 20 years and interest rates around 4% to 6%, subject to approval. Customers gained immediate of the system, qualifying them for the 30% federal and potential state incentives, along with the ability to claim credits and no prepayment penalties. This model allowed for equity buildup and maximized savings over time. A purchase option enabled customers to pay the full system cost upfront, securing outright ownership from installation and eligibility for the full 30% federal , which could offset up to 30% of costs. This approach provided the highest long-term savings through direct bill reductions and inflation hedging, without ongoing payments to Vivint Solar beyond a minimal maintenance fee. Following Sunrun's 2020 acquisition of Vivint Solar, financing transitioned toward Sunrun's subscription models, blending elements of leases and PPAs with $0-down options and fixed or performance-based payments. This enhanced scalability through arrangements like forward flow financing, exemplified by Vivint's pre-acquisition $360 million commitment that supported ongoing system deployments under the combined entity.

Sales practices allegations

In March 2018, the filed a against Vivint Solar, alleging that the company's door-to-door sales representatives engaged in deceptive practices by making unsubstantiated claims about energy bill savings. The suit specifically accused sales staff of promising reductions of 20% to 40% or even 60% to 80% on utility bills compared to local provider rates, without basis, while failing to disclose a 2.9% annual escalator clause in power purchase agreements that could increase payments by over 70% over 20 years. These tactics were described as high-pressure, with representatives providing contracts only in form to limit consumer review time and omitting key details about long-term costs. Customer complaints highlighted aggressive sales approaches that disproportionately targeted elderly homeowners, who were particularly vulnerable to door-to-door solicitations and complex 20-year lease terms. Reports described representatives using urgency to pressure quick decisions, often misrepresenting lease obligations and leading to unexpected escalations in monthly payments that exceeded initial promises. For instance, some consumers experienced bills rising shortly after installation, such as a 16% increase within two months, contrary to advertised savings. Similar allegations surfaced in other states, including , where customers filed complaints with the Attorney General about false promises of energy savings and misleading marketing materials. In , consumer reports echoed concerns over unfulfilled savings projections in solar leases. Prior to 2020, the recorded over 700 complaints against Vivint Solar in a three-year period, with a significant portion focusing on unmet expectations for bill reductions and deceptive contract terms. Internal reviews and revealed patterns of staff , including the use of falsified or altered details to meet quotas, as documented in customer affidavits and state investigations. These practices contributed to broader scrutiny of Solar's model, though resolutions fell under separate regulatory frameworks.

Regulatory actions and settlements

In 2021, Vivint Solar settled a 2018 lawsuit brought by the , agreeing to pay $1.95 million to the state for alleged deceptive business practices in solar sales, including misleading consumers about contract terms and system ownership. The agreement mandated reforms such as enhanced employee training on ethical sales practices and improved disclosure of financing details, but provided no direct restitution to affected customers, with funds allocated to the Attorney General's office and legal costs. In 2019, Vivint Solar entered a multi-state regulatory agreement highlighted by a settlement with the Division of Consumer Affairs, paying a $122,000 to resolve claims of providing misleading quotes on energy savings from installations during sales. The company agreed to cease deceptive representations about cost reductions and installation timelines, while some broader allegations were dismissed without admission of liability beyond minor procedural violations. The Federal Trade Commission (FTC) in 2021 secured a $20 million settlement from Vivint Smart Home, the parent company of Vivint Solar, for violating the Fair Credit Reporting Act by accessing consumers' credit reports without permissible purpose during sales pitches for smart home security and monitoring services. The settlement included $15 million in civil penalties—the largest ever for such FCRA violations—and $5 million in consumer redress, plus requirements for better credit access protocols. After acquired Vivint Solar in 2020, the combined entity implemented enhanced compliance programs, including updated sales training and monitoring to address prior issues like those in sales practices allegations. However, as of November 2025, has faced ongoing scrutiny, including investigations into alleged high-pressure and dishonest sales strategies in power purchase agreements inherited from Vivint Solar operations, affecting customers in multiple states. In 2024–2025, state attorneys general in and initiated actions against for deceptive practices and contract disputes, with reports of lawsuits filed by against customers for alleged non-payment amid claims of misleading terms.

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