Vivint Solar gets $100 million in tax equity commitments

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U.S. residential solar installer Vivint Solar has secured tax equity commitments with an aggregate value of $100 million from two unnamed repeat investors.

The company said the funds will be utilized to install approximately 70 MW of residential PV capacity for approximately 10,000 new residential customers in the United States. More details about the projects were not released.

Raising tax equity funding is vital for U.S. solar companies like Vivint which utilize a third-party ownership model, as this is necessary to monetize the Investment Tax Credit for solar energy.

The $100 million in new tax equity commitments will add to the $363 million in tax equity in four funds the company reported in its financial results released in March. The pre-existing funds are expect to cover the deployment of roughly 217 MW of solar, and as this is roughly what the company expects to install over the full year 2017, the new $100 million will allow for deployment into 2018.

Vivint has recently moved away from the third-party sales model towards more direct sales, however the large majority of its deployments are still through leases and power purchase agreements. Over the course of 2017 Vivint expects to install 210-230 MW, with a mid-point around 2016 levels.

In March, the company claimed it had brought down installed costs to $2.98 per watt

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