Private equity-backed residential solar developer Vivint Solar has received $540m in funding from two unidentified financial institutions in order to build home power generation systems.
This latest financing comes as an add-on to the $200m received by Vivint in August. It includes $40m in tax-equity financing, while the remainder is ‘non-specific residential solar financing,’ Bloomberg reported.
Some energy developers do not produce enough taxable income to use all of the tax credits related to renewable-energy projects, and therefore sell equity stakes to larger backers that apply a portion of the credits to their own tax bills – a practice known as tax-equity financing.
Last year, US private equity company Blackstone acquired Vivint in a deal worth over $2bn. Vivint develops solar in California, Hawaii, Maryland, Massachusetts, New Jersey, New York, and Washington.
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