Vivint Solar CEO Comments On Net-Energy Metering Rule In Nevada
Vivint Solar CEO, Greg Butterfield, responds to the net-energy metering rule adopted by the Public Utilities Commission in Nevada.
Jan 06, 2016, 08:00 ET
LEHI, Utah, Jan. 6, 2016 /PRNewswire/ -- Vivint Solar (NYSE: VSLR), is proud to stand at the forefront of the fight for affordable residential solar energy and the continued growth of the industry. Our customers in 12 states and the District of Columbia enjoy clean and abundant power while reducing their monthly bills, and 2016 will see service rollouts in more states. We will vigorously defend consumers' right to choose where their electricity comes from.
A recent Wall Street Journal editorial unfairly characterizes as a "tantrum" efforts by the solar industry to remain economically viable in Nevada, where a powerful political effort has put our service offering on hold. What happened in that state is a microcosm of how regulation can stifle competition in a growing market, harming consumers and the environment in the process.
As I and others in the solar industry have warned for months, the decision by the Nevada Public Utilities Commission to end its net metering program will cost jobs, economic output, and consumer choice, while protecting the interests of an entrenched monopoly - NV Energy.
NV Energy prevailed by depicting solar consumers as freeloaders enjoying a price break at the expense of others. This is deceptive. In reality, those consumers' investments in solar returns surplus energy back to the grid. This energy is cheaper to distribute and cleaner than the power provided by public utilities.
The editorial also labeled policies intended to boost the growth of solar as "corporate welfare," when net metering is simply a policy to ensure that government-backed monopolistic power companies pay people for the clean energy their solar-equipped homes produce and send into the grid.
Moreover, the Nevada Public Utilities Commission's own study, released in July 2014, found that net metering cuts overall costs for everyone by reducing taxpayer investment in transmission infrastructure and reducing the amount of power lost during transmission, because surplus net-metered energy is consumed locally. The decision by the Commission robs Nevadans of that value and gives it back to the utility.
Were we and our competitors to proceed with operations in Nevada, customers would lose money, limiting adoption only to those willing to make an environmental statement—distracting from one of the first truly disruptive energy innovations in more than 100 years. Lawmakers in other states should focus on protecting jobs and reducing consumer costs, instead of following Nevada's dated model of corporate welfare for entrenched industries.
About Vivint Solar
Vivint Solar is a leading provider of distributed solar energy systems – electricity generated by a solar energy system installed at a customer's location – to residential customers in the United States. Vivint Solar's customers pay little to no money upfront, receive significant savings relative to utility generated electricity rates and continue to benefit from guaranteed energy prices over the 20-year term of their contracts. Vivint Solar finances, designs, installs, monitors and services the solar energy systems to make things easy for its customers. For more information, visit www.vivintsolar.com or follow @VivintSolar.
Note on Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding Vivint Solar's operating and financial results such as estimates of nominal contracted payments remaining, estimated retained value, estimated retained value per watt, and the assumptions related to the calculation of the foregoing metrics.
Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Forward-looking statements should not be read as a guarantee of future performance or results, and they will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. These statements are based on current expectations and assumptions regarding future events and business performance as of the date of this press release, and they are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including but not limited to: the availability of additional financing on acceptable terms; changes in the retail price of traditional utility generated electricity; changes in electric utility policies and regulations; the availability of rebates, tax credits and other incentives, including solar renewable energy certificates, or SRECs and state incentives, that affect the pricing of our offering; regulations and policies related to net metering; changes in regulations, tariffs and other trade barriers and tax policy affecting us and our industry; our ability to manage our recent and future growth effectively, including attracting, training and retaining sales personnel and solar energy system installers; the availability and price of solar panels and other system components, the assumptions employed in calculating our operating metrics may be inaccurate; the proposed acquisition by SunEdison, Inc. does not close due to the failure to obtain financing for the payment of consideration in the transaction or regulatory approval or otherwise; the disruption to our business caused by the acquisition by SunEdison is greater than expected and makes it difficult to operate as a standalone company or maintain certain strategic relationships; Vivint Solar's limited operating history, particularly as a new public company; and such other risks identified in the registration statements and reports that Vivint Solar files with the U.S. Securities and Exchange Commission, or SEC, from time to time. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in those statements will be achieved or will occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Except as required by law, Vivint Solar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. You should read the documents Vivint Solar has filed with the SEC for more complete information about the company. These documents are available on both the EDGAR section of the SEC's website at www.sec.gov and the Investor Relations section of the company's website at www.vivintsolar.com.
Vice President of Investor Relations
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SOURCE Vivint Solar
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