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.