Vivint Solar quickly grew to the second largest residential solar installer in the U.S., behind SolarCity. Now it’s looking to expand its customer base further and has announced plans to move into the commercial and industrial side of solar financing and installing.
Vivint Solar is getting into the game with $150 million to support the construction and installation of solar power at commercial and industrial sites.
"This new business unit is a major step for Vivint Solar," said Jan Newman, vice president of Business Development at Vivint Solar. "Providing more than residential solar enables us to reach additional customers and markets, and we're excited about the potential this expansion into the commercial and industrial space brings with it."
The company also announced it is working with The Blackstone Group to provide solar power to its portfolio of commercial and industrial properties. The Blackstone Group is the majority owner of the publicly traded, Utah-based company.
"Blackstone is excited to work with Vivint Solar to explore possibilities within our portfolio," said Don Anderson, Chief Sustainability Officer at Blackstone. "We've watched Vivint Solar grow over the past few years and look forward to bringing the benefits of solar power to our family of companies."
"We see great potential and look forward to exploring, with Blackstone, the various opportunities that exist for us to bring solar energy to its commercial and industrial portfolio of properties," Newman said. "To work with the world's largest private equity firm in our efforts to expand into the commercial and industrial market is an exciting position for us."
By expanding into this portion of the solar industry, Vivint Solar will become a stronger competitor to SolarCity. It also comes as interest in serving the commercial solar market is growing. If the federal government does not renew the Investment Tax Credit prior to its expiration at the end of 2016 the commercial sector of the solar market will still be eligible for a 10 percent tax credit rather than the 30 percent credit. However, the residential tax credit is set to expire completely.Tweet