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Vivint Solar’s Future is BrightJuly 31 2015 - 12:23 pm
For Immediate Release
July 31, 2015
Michael Sullivan, GOED Communications Director
Casey Briggs, Vivint Public Relations Manager
Vivint Solar’s Future is Bright
Company’s expansion will create more than 3,000 jobs
SALT LAKE CITY, UT—Vivint Solar, Inc. (NYSE:VSLR), along with the Governor’s Office of Economic Development (GOED), announced today that the solar energy company will continue to expand its operations in Utah, with the anticipation that over the next 10 years it will generate more than 3,000 jobs in conjunction with an estimated $91 million in additional capital investment within the state.
“It’s always exciting to see a homegrown company become so successful,” said Val Hale, executive director of GOED. “GOED’s mission is not only to recruit new businesses to the state but to also promote the expansion of Utah businesses. We are pleased with Vivint Solar’s contributions to the state’s energy industry.”
Launched in 2011, Vivint Solar designs, installs, leases and provides monitoring services for its residential rooftop solar energy system customers. As of the end of the first quarter of 2015, Vivint Solar had installed more than 40,000 distributed solar energy systems on the homes of residential customers throughout the United States. This rapid growth has led Vivint Solar to have 1,200 Utah employees and more than 2,300 out-of-state employees. Vivint Solar recently announced that it has signed a definitive agreement to be acquired by SunEdison (NYSE: SUNE), the largest renewable energy development company in the world, for $2.2 billion.
“Vivint Solar is proud to be headquartered in Utah,” said Greg Butterfield, CEO of Vivint Solar. “Utah has cultivated a hardworking, innovative workforce and we are excited to continue to expand our operations in the Beehive State.”
Vivint Solar has indicated that average wages for jobs created in the state of Utah, excluding the value of health and medical benefits, are expected to exceed 125 percent of the Utah County average wage. The projected new state wages over the life of the agreement are expected to be approximately $1.1 billion. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be approximately $49.4 million over 10 years. Vivint Solar’s continued growth is expected to generate an estimated $91 million in additional capital investment over the same time period.
“Vivint Solar was started right here in Utah and is an important contributor to our vibrant alternative energy industry,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah. “We are excited to see them continue to grow in the state.”
Vivint Solar may earn up to 25 percent of the new state taxes they will pay over the 10-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with Vivint Solar, the GOED Board of Directors has approved a post-performance tax credit rebate of $12,347,369.
In addition to the 10 year incentive, if the company generates a minimum of 3,143 jobs and grows to 4,342, meeting 100 percent of projected hiring in years 11 through 15, Vivint Solar may earn an extension to the agreement for another five years. This could earn the company an incremental incentive increase of $13,816,537. Each year as Vivint Solar meets the criteria, it will earn a portion of the total tax credit rebate. Vivint Solar may also earn a post-performance Industrial Assistance Fund relocation and training grant of up to $200,000 as it relocates management and trains its expanding personnel.
Editor’s Note: For questions regarding investment, please contact Vice President of Investor Relations Rob Kain at email@example.com or 801-234-7066.
About the Utah Governor’s Office of Economic Development (GOED)
The Governor’s Office of Economic Development (GOED) charter is based on Governor Gary Herbert’s commitment to economic development statewide. Utah’s economic development vision is that Utah will lead the nation as the best performing economy and be recognized as a premier global business environment and tourist destination. The mandate for this office is to provide rich business resources for the creation, growth and recruitment of companies to Utah and to increase tourism and film production in the state. GOED accomplishes this mission through the administration of programs that are based around targeted industries or “economic clusters” that demonstrate the best potential for development. GOED utilizes state resources and private sector contracts to fulfill its mission. For more information please contact: Michael Sullivan, 801-538-8811 or firstname.lastname@example.org
About Vivint Solar
Vivint Solar is a leading provider of distributed solar energy – electricity generated by a solar energy system installed at a customer’s location – to residential, commercial and industrial customers in the United States. Vivint Solar’s customers pay little to no money upfront, receive significant savings relative to utility generated electricity 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 as defined within the meaning of the federal securities laws, including statements regarding Vivint Solar’s growth plans and growth prospects and the expected benefits associated with growth of the company’s business. 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 retail price of traditional utility generated electricity; changes in electric utility policies and regulations; the availability of rebates, tax credits and other incentives that affect the pricing of our offering, including regulations related to net metering; changes in regulations, tariffs and other trade barriers and tax policy affecting the company and its 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; and the other risks identified in the registration statements and reports that Vivint Solar files with the U.S. Securities and Exchange Commission, which are available on the Investor Relations section of our website at www.vivintsolar.com. 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.