For most leading residential installers, securing tax equity financing is a fairly unremarkable development. However, todays announcement by Vivint Solar that it had closed on US$75 million in tax equity financing is welcome news for a company which has struggled in the wake of the failed acquisition by SunEdison.
Vivint estimates that the funding from a new, un-named investor will allow it to install more than 45 MW of residential solar PV. It is also proof that Vivint can still raise significant funds.
In an analyst and investor call in April, former Vivint CEO Greg Butterfield cited a greater difficulty in raising tax equity financing as one of the companys challenges caused by SunEdisons botched acquisition attempt.
Vivint is currently undergoing a number of changes, and earlier this month announced that CEO Butterfield had stepped down. Chief Operating Officer David Bywater is currently serving as interim CEO while the company searches for a permanent replacement.
Vivint was the second-largest residential solar installer in the United States in 2015, with an 11% market share according to GTM Research. However, the company reported slower growth during Q1 than its peers.