CLEVELAND, July 7, 2020 /PRNewswire/ -- Sunrun Incorporated, the leading US installer of residential solar systems, announced today that it has entered into an agreement to purchase Vivint Solar -- an installer of residential solar systems active in 23 states products distributor – for about $3.2 billion in stock.
The transaction, which is expected to be completed by the end of 2020, will:
- expand Sunrun's geographic reach into new sales territories
- create a customer base of nearly 500,000 households – all equipped with rooftop solar power systems
- provide a mechanism for future growth by using Vivint Solar's network of sales agents
- create cost synergies that will allow the combined company to more aggressively market its solar power systems
According to Freedonia Group industry analyst Matt Zielenski, "This transaction will allow Sunrun to further expand its leading position in the rooftop solar market, as the company can use Vivint's sales teams – many of whom go door-to-door to market their systems – to promote rooftop solar as an affordable and environmentally friendly option for their residences." Furthermore, noted Zielenski, the rooftop solar market has incredible growth potential, as less than 3% of all homes in the US have rooftop solar cogeneration systems. Many of these residences are in California, where homeowners are using solar to meet that state's stringent energy efficiency requirements.
"Solar power is becoming an increasingly affordable choice for homeowners, as tax credits and technological advances make it possible for consumers to easily recoup what they spent on installing rooftop solar system by lowering their electric bills. This acquisition has the potential to make the installation of these systems even more cost-efficient while positioning Sunrun for further growth."
For more information on the outlook for related building products – such as roofing and the building envelope – see the Construction Studies page featuring the following industry studies by The Freedonia Group:
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SOURCE The Freedonia Group