Vivint Solar reassures investors with Q1 data

If anyone is unhappy about SunEdison’s failed acquisition of Vivint Solar, it is Vivint. The company cancelled the acquisition six weeks ago, citing a “willful breach” of contract, and has since been picking up the pieces.

??On Thursday Vivint Solar held an impromptu analyst and investor call, in what appears to be an effort to reassure investors that the company was returning to its previous path. Along the way, the company provided some preliminary Q1 data.

During Q1 Vivint reports booking 66 MW of residential solar and installing 55 MW, a 20% year-over-year growth. This has brought nominal contracted payments up 71% year-over-year to $2.1 billion, and the company reports a net retained value of $735 million.

This does not mean that the failed acquisition was without consequences. “The uncertainty and the disruption caused by the transaction cannot be understated,” declared CEO Greg Butterfield during the call. He blamed the lengthy process for the underperformance of the company’s sales team in H2 2015 and also said that it interfered with raising tax equity.

And while Vivint’s install costs have also increased 4% year-over-year, Butterfield notes that its install cost of $3.35 per watt “still remains among the best in our peer group”. Additionally, since the termination of the acquisition in early March the company has secured a $200 million term debt facility.

On the call Vivint also gave some insight into its strategy for the future. Noting that third-party ownership involves significant up-front capital needs, the company is stressing its loan product in Utah and partnership with Mosaic, a model which it says that it plans to bring to other states.

During Q2 Vivint expects to increase installed capacity again to 60 MW. Over the course of the year the company expects to install 260 MW, and to bring full-year installed costs down to $2.85-2.95 per watt.