NewEnergyNews: Clean Power Finance Moves Big Numbers Into PV With Vivint Solar Deal


Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

While the OFFICE of President remains in highest regard at NewEnergyNews, this administration's position on climate change makes it impossible to regard THIS president with respect. Below is the NewEnergyNews theme song until 2020.

The challenge now: To make every day Earth Day.


  • TODAY’S STUDY: The Value Of Transportation Elecrification
  • QUICK NEWS, December 12: The “Fight-Climate-Change” Diet; Market For Advanced EV Batteries To Quadruple By 2026; The Low Lifecycle Costs In New Energy

  • TODAY’S STUDY: How The New Energy Marketplace Is Growing And Shifting
  • QUICK NEWS, December 11: N.C. Millennial Women Unite For Climate Fight; The White House Threat To New Energy; What’s Bad News In The Tax Bill For New Energy

  • Weekend Video: Tesla Adds World’s Biggest Battery To Aussie Wind
  • Weekend Video: Solar And The Next Utilities
  • Weekend Video: Wind Builders On Wind

  • FRIDAY WORLD HEADLINE-The Climate Change Gourmet
  • FRIDAY WORLD HEADLINE-UK Study Says Yes To Solar-Powered Electric Trains
  • FRIDAY WORLD HEADLINE-First Aussie Ocean Wind Project Gets $8BIL Funding
  • FRIDAY WORLD HEADLINE-EU Solar Goes Digital To Open New Services


  • TTTA Thursday-City Mayors Unite To Fight Climate Change
  • TTTA Thursday-New Energy And Big Oil Unite Against Subsidies For Coal And Nuclear
  • TTTA Thursday-California Would Sell Only EVs After 2040
  • TTTA Thursday-Utilities In A Time Of Solar
  • --------------------------


    Founding Editor Herman K. Trabish



    Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart




      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.


    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • TODAY AT NewEnergyNews, December 13:

  • ORIGINAL REPORTING: How California Is Easing Off NatGas With New Energy
  • ORIGINAL REPORTING: Illinois cloud computing debate could open utility rate reform

    Tuesday, April 10, 2012

    Clean Power Finance Moves Big Numbers Into PV With Vivint Solar Deal

    Clean Power Finance Moves Big Numbers Into PV With Vivint Solar Deal; CPF’s money and Vivint’s customers could mean 150K rooftop solar installs a year.
    Herman K. Trabish, February 7, 2012 (Greentech Media)

    click to enlarge

    Innovations in rooftop solar system financing may be driving the growth of solar more than anything except, possibly, Chinese government subsidies. But China’s subsidies are unsustainable, if not illegal, while financing advances like the just-announced Clean Power Finance (CPF) partnership with Vivint Solar are transforming the industry.

    The basic idea behind CPF, explained CEO Nat Kreamer, is “to connect the capital market with the solar market.”

    Backed by a group of the biggest names in greentech venture capital, including Kleiner Perkins and Google, CPF is a business-to-business service in the form of a software tool that allows solar installers to make financing available to system buyers.

    “We started selling financing for solar systems in April 2011,” Kreamer said, "and by August 2011, we were financing more than a million dollars a day of residential power purchase agreements and leases.”

    By adding Vivint Solar as a partner, CPF took another step forward. “It shows how this market is advancing very quickly that you’re having players like Vivint come into it,” Kreamer said. “This is a trend of companies that have been very successful in other markets that are bringing that success to the solar market.”

    click to enlarge

    Vivint began as APX Alarm Security Solutions Inc. in 1999 and expanded into home energy management automation, and then, six months ago, into solar installations.

    “Vivint has built a tremendous base of something like 600,000 customers,” Kreamer said. CPF’s part of the deal, he added, "is to provide them with a variety of finance products that they can use to sell more solar.”

    In the short time that Vivint has been in the solar installation business, it has won $75 million in financing from U.S. Bancorp and made itself, Kreamer said, “one of the largest U.S. providers of solar.”

    In Vivint’s first six months, “our run rate is ramping toward 3,000 to 5,000 installations per year,” said Vivint Solar President Tanguy Serra. Based on its current annual 150,000 home system installations, Serra said, Vivint’s goal is 150,000 yearly solar installations. “But that level of financing for solar doesn’t yet exist,” he explained. “That’s why we’re partnering with CPF.”

    “To them, 150,000 customers doesn’t sound like a lot,” Kreamer said. “To the rest of the solar industry, it does. But it shouldn’t. That’s what Clean Power Finance is all about.”

    Because of the specific federal, state and local incentives that apply to solar financing, the CPF backing will not be used in Vivint’s other businesses. Although such a convergence will likely come eventually, Kreamer said, “You can’t blend the two products right now.”

    But in building the kind of customer base Vivint has, Kreamer said, “you learn something about how to do high-quality installations fast. Vivint has taken all of that knowledge, those same systems and technology, and applied it to solar.”

    Vivint Solar uses Enphase Energy microinverters and Zep Solar mounting systems, but it is not rapid construction at which Vivint excels. “One of the holy grails when you think about consumers,” said Kreamer “is instant gratification. They figured out that instant gratification is getting to that install as quickly as possible.”

    Because CPF’s software tool was built to be flexible, Kreamer said, Vivint will be able to use the CPF white label software for the solar part of its business while maintaining its own IT systems for security and energy management.

    Serra echoed Kreamer. “We have invested $40 million in the last 10 years in IT systems,” he said. “The relationship is around integrating our work flow into their financing process.”

    click to enlarge

    Estimating an install at roughly $35,000, Kreamer said, the lowest projected Vivint volume of 3,000 installs per year would require $105 million per year. That would be in addition to the $1 million per day, or $300 million per year, of its funders’ money CPF is already putting into solar.

    “We have enough capital to meet our customers’ present demand and their future demand for some time,” Kreamer said. Investors “want to put their money to work and this is a great asset class so we have a lot of capital interested in working with us,” he explained. “People who own homes pay their electricity bills,” Kreamer said, which means “there is low likelihood of default, and investors like that.” Default rates, he said, are lower than default rates on AAA bonds.

    Rooftop solar, Kreamer said, is a low-risk, high-reward investment in what is essentially a
    long-term asset. In addition, with the federal Investment Tax Credit (ITC) available through 2016, as much as 45 percent of an investor’s capital outlay comes back as a tax benefit in the first year of the loan. And the overall return on investment in residential solar is “anywhere from the high single digits to the mid-teens.”

    CPF, Kreamer said, has ample capital, and adding a customer like Vivint means there is “deal flow” for the capital. Then, alluding to “good news coming” that he could not yet talk about that will expand CPF’s resources, Kreamer simply said, “we’re not throttling back on our deal flow,” adding that Vivint is ”ramping its business at the same time we’re ramping our capital.”

    “We’re seeing hundreds of millions and billions of dollars come at this sector,” Kreaemer said, “and a partnership like this one just makes it more attractive.”


    Post a Comment

    << Home