Vivint Solar announced that it had landed two new tax equity funds worth US$200 million.The net proceeds, the company said, would be used to fund solar power platforms on residential rooftops. Blackstone, one of the world's largest private equity firms, bought the company for US$2 billion last year.
Vivint Solar, which operates from its headquarters in Provo, Utah, presently caters to 800,000 customers, making it one of the biggest automation and home security companies in the United States. Vivint is well known for its low cost of customer acquisition and extensive sales network.
The funding raising confirms heightened interest in residential solar systems. Sunrun, another solar power service provider, announced three funds with a combined total of US$630 million in June. It's investors included JPMorgan Chase & Co. and the U.S. Bank. This was the first investment for JPM Capital Corporation in the residential solar industry. JPM Capital Corporation is a subsidiary of JPMorgan.
"It is the largest and most consistent provider of capital to renewables, but until now most of their investments have been in wind. This is a watershed moment," Ed Fenster, Chief Executive Officer of Sunrun, said.
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