Vivint Solar

Vivint Solar

Company type	Public (until 2020)
Industry	Solar energy
Founded	October 2011 (2011-10)
Founder	Vivint (as a division)
Defunct	October 2020 (2020-10)
Fate	Acquired by Sunrun
Headquarters	Lehi, Utah , United States
Area served	United States (23 states)
Key people	David Bywater (CEO from 2016)
Products	Photovoltaic solar energy solutions, home battery storage
Parent	Sunrun (from 2020)

Vivint Solar operated as a U.S.-based supplier of photovoltaic solar energy solutions, primarily serving residential clients. Established in 2011 as a branch of the home automation company Vivint, its headquarters were located in Lehi, Utah. The company’s operational approach relied heavily on power purchase agreements (PPAs), whereby it installed and maintained solar installations and sold the electricity generated to customers at predetermined rates over the duration of the contracts. In 2020, Sunrun acquired Vivint Solar for $3.2 billion, strengthening their combined presence in the residential solar sector.

Prior to the acquisition, Vivint Solar had installed 1.29 gigawatts of solar capacity, serving over 188,000 customers across 23 states in the U.S., including major markets such as California, Arizona, Texas, and New York. The company’s emphasis on expanding through PPAs was instrumental in increasing its market share and establishing a notable position within the renewable energy field.

History

Vivint Solar was launched in October 2011 as the solar division of Vivint, a company specializing in home automation and security, promoting solar energy as part of its Smart Home offerings with integrated energy usage monitoring. In November 2012, the Blackstone Group acquired a majority stake in Vivint, Vivint Solar, and 2GIG Technologies for over $2 billion. Following this transaction, Vivint Solar became an independent entity and rapidly expanded to become the second-largest residential solar installer in the United States by 2013, largely driven by direct door-to-door sales efforts. The company went public on the New York Stock Exchange in October 2014.

In December 2014, a class-action lawsuit was initiated against Vivint alleging that the company misled investors during its IPO concerning the waning popularity of its PPA model; these allegations were denied by Vivint. In July 2015, SunEdison announced intentions to purchase Vivint Solar for $2.2 billion; however, the agreement fell through by March 2016, resulting in Vivint Solar filing a breach of contract lawsuit while SunEdison subsequently declared bankruptcy.

Following the unsuccessful merger attempt, Vivint Solar encountered difficulties despite having greater capital availability; installations declined by 21% between late 2015 and late 2016 as consumer preferences shifted from PPAs toward outright ownership. To adapt to changing market demands, Vivint introduced loan financing and cash purchase options in late 2016, which led to an 84% increase in revenue compared to the previous year. That same year, David Bywater was appointed as CEO.

In 2017, expanding its product range, Vivint entered the home energy storage sector through a collaboration with Mercedes-Benz Energy to offer home battery storage solutions; by 2018, LG Chem became its primary battery supplier.

In 2018, the New Mexico Attorney General filed a lawsuit against Vivint Solar accusing it of unfair business practices such as title clouding and fraud; later that year, Vivint filed a countersuit.

In July 2020, Sunrun revealed plans to acquire Vivint Solar for $3.2 billion. The transaction was finalized in October 2020 following regulatory clearance and shareholder approval, resulting in a combined entity valued at around $22 billion.