Provo, Utah-based Vivint Inc received USD 540 million to construct home power systems. The Blackstone Group-owned firm did not give out the names of the two financial institutions that had provided the funding. Vivint is a home security and solar energy company. The latest funds were added to the tax-equity financing worth USD 200 million it received in August.
Vivint Spokeswoman Kady Cooper told Bloomberg by email that the latest proceeds included USD 40 million in tax-equity financing. The remaining amount was classified as non-specific residential solar financing.
Tax-equity financing is an arrangement where developers that were engaged in renewable energy projects sell equity stakes to large investors. The investors then apply part of the credit to their own tax bills. Developers that do not have sufficient taxable income to use up all their tax credits for their renewable-energy undertakings would be the ones that would engage in this type of financing arrangement, a Bloomberg report said.
Blackstone was able to acquire Vivint in December last year for a price tag of USD 2 billion. The solar firm has operations in California, Hawaii, Maryland, New Jersey, Massachusetts, New York and Washington, DC.
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