DOCSLIB.ORG

Brennen Hyatt, Et Al. V. Vivint Solar, Inc., Et Al. 14-CV-09283-Consolidated

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Brennen Hyatt, Et Al. V. Vivint Solar, Inc., Et Al. 14-CV-09283-Consolidated Case 1:14-cv-09283-KBF Document 42 Filed 02/13/15 Page 1 of 40 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK BRENNEN HYATT, Individually and on Behalf of All Others Similarly Situated, Plaintiff, v. Case No. 1:14-cv-09283-KBF VIVINT SOLAR, INC., THE BLACKSTONE GROUP L.P., GREGORY S. BUTTERFIELD, CONSOLIDATED AMENDED DANA C. RUSSELL, DAVID F. COMPLAINT FOR VIOLATION OF D’ALESSANDRO, ALEX J. DUNN, BRUCE THE FEDERAL SECURITIES LAWS McEVOY, TODD R. PEDERSEN, JOSEPH F. TRUSTEY, PETER F. WALLACE, JOSEPH S. TIBBETTS, GOLDMAN, SACHS & CO., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, CREDIT SUISSE SECURITIES (USA) LLC, CITIGROUP GLOBAL MARKETS INC., DEUTSCHE BANK SECURITIES INC., MORGAN STANLEY & CO. LLC, BARCLAYS CAPITAL INC., and BLACKSTONE ADVISORY PARTNERS L.P., Defendants. THOMAS LIMA, Individually and on Behalf of All Others Similarly Situated, Plaintiff(s), v. Case No. 1:14-cv-09709-KBF VIVINT SOLAR, INC., THE BLACKSTONE GROUP L.P., GREGORY S. BUTTERFIELD, DANA C. RUSSELL, DAVID F. D’ALESSANDRO, ALEX J. DUNN, BRUCE McEVOY, TODD R. PEDERSEN, JOSEPH F. TRUSTEY, PETER F. WALLACE, JOSEPH S. TIBBETTS, GOLDMAN, SACHS & CO., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, CREDIT SUISSE Case 1:14-cv-09283-KBF Document 42 Filed 02/13/15 Page 2 of 40 SECURITIES (USA) LLC, CITIGROUP GLOBAL MARKETS INC., DEUTSCHE BANK SECURITIES INC., MORGAN STANLEY & CO. LLC, BARCLAYS CAPITAL INC., and BLACKSTONE ADVISORY PARTNERS L.P., Defendants. Case 1:14-cv-09283-KBF Document 42 Filed 02/13/15 Page 3 of 40 TABLE OF CONTENTS NATURE OF THE ACTION ......................................................................................................1 JURISDICTION AND VENUE ..................................................................................................4 PARTIES ....................................................................................................................................5 SUBSTANTIVE ALLEGATIONS..............................................................................................8 A. Vivint Solar’s Investment Fund Accounting and Net Losses ....................................... 10 B. Vivint Solar’s Long-Term Leases and Power Purchase Agreements ............................ 20 C. Market Saturation Impacting Vivint Solar’s Operations in Hawaii .............................. 25 CLASS ACTION ALLEGATIONS .......................................................................................... 31 COUNT I .................................................................................................................................. 32 COUNT II ................................................................................................................................. 34 COUNT III ............................................................................................................................... 35 PRAYER FOR RELIEF ............................................................................................................ 36 JURY TRIAL DEMANDED ..................................................................................................... 37 Case 1:14-cv-09283-KBF Document 42 Filed 02/13/15 Page 4 of 40 Lead Plaintiff Robby Shawn Stadnick (“Plaintiff”) alleges the following based upon the investigation of counsel, which included a review of United States Securities and Exchange Commission (“SEC”) filings by Vivint Solar, Inc. (“Vivint Solar” or the “Company”), as well as regulatory filings and reports, securities analyst reports and advisories by the Company, press releases and other public statements issued by the Company, and media reports about the Company. Plaintiff believes that additional evidentiary support will exist for the allegations set forth herein after a reasonable opportunity for discovery. NATURE OF THE ACTION 1. Vivint Solar provides residential homeowners the opportunity to save 15% to 30% off their electricity bills. Using a direct sales model, Vivint Solar’s sales force solicits customers on a door-to-door basis, offering solar panel energy systems for little-to-no money upfront through long-term leases or power purchase agreements. Homeowners who accept the offer enter into these agreements—which last 20 years—and typically benefit from the electricity produced from the solar energy systems once installed and operational. 2. The Company benefits as well. Due to the fact that these long-term arrangements allow Vivint Solar to retain ownership of the solar energy systems, the Company is able to receive a number of local, state, and federal benefits associated with solar energy investments, including but not limited to investment tax credits and accelerated tax depreciation. These benefits (referred to as tax equity investments) along with the homeowners’ monthly payments (referred to as customer receivables) are then bundled together and securitized. This is how Vivint Solar makes its money—through the securitization of its tax equity and customer receivables. 1 Case 1:14-cv-09283-KBF Document 42 Filed 02/13/15 Page 5 of 40 3. Vivint Solar provided investors with an overview of its business model in its Registration Statement1 in advance of the Company’s October 1, 2014 initial public offering (the “IPO”). The Registration Statement presented Vivint Solar as a source of highly predictable and stable cash flows based on a 20-year stream of payments from creditworthy customers under long-term contracts. Vivint Solar noted its history of positive and growing earnings-per-share and the opportunities in the market for solar energy. This presentation was highly misleading. 4. In fact, Vivint Solar presents a highly risky and volatile income stream with the only certainty being substantial operating losses into the foreseeable future. In valuing its customer contracts, Vivint Solar assumes a low default rate and high renewal rate for its customers, even though solar energy is a dynamic industry with a high degree of product development so that the solar energy systems being sold in 2014 by Vivint Solar will likely be obsolete long before the end of the 20-year term of the customer contract. Vivint Solar was also facing increasing difficulties leasing its solar energy systems as customers began to increasingly look to purchase the system themselves so as to be able to claim the related federal and state tax incentives. This increased the cost and expense of identifying and signing new customers. Vivint Solar offered no option for customers to buy their own solar energy system. Vivint Solar was also confronting heightened regulation and market saturation conditions in Hawaii, a geographic territory which accounted for 15% of the Company’s installations. Finally, Vivint Solar was experiencing increasing difficulties and delays in completing installations of its solar energy systems. 1 “Registration Statement” refers collectively to the Company’s Registration Statement on Form S-1 filed with the SEC on August 26, 2014, Amendment No. 1 to the Registration Statement on Form S-1/A filed with the SEC on September 19, 2014, Amendment No. 2 to the Registration Statement on Form S-1/A filed with the SEC on September 26, 2014, and the Prospectus on Form 424B4 filed with the SEC on October 1, 2014. Citations to “Registration Statement at __” refers to pages within the Prospectus on Form 424B4. 2 Case 1:14-cv-09283-KBF Document 42 Filed 02/13/15 Page 6 of 40 5. Vivint Solar was able to mask these trends because it was able to attribute all of its operating losses for a quarter to “non-controlling interests” in investment funds that it used to finance the solar energy systems it leased to its customers. This attribution of losses to Vivint Solar’s “non-controlling interests” converted operating losses of $56.4 million and $69.2 million for the year ended December 31, 2013 and six months ended June 30, 2014 to reported net income available to common stockholders of $5.6 million and $12.5 million, respectively. This complex and opaque accounting sleight-of-hand meant it was impossible for investors to predict Vivint Solar’s net income and earnings-per-share into the future. At the time of the IPO, however, the growth in new customers signed together with the increasing delays experienced in installation meant that there would be a dramatic reduction in the proportion of Vivint Solar’s operating losses that could be attributed to the investment funds for the three months ended September 30, 2014. It was thus inevitable that Vivint Solar would experience a significant net loss during the three months ended September 30, 2014. This fact was not disclosed to Vivint Solar’s investors in the Registration Statement dated September 30, 2014. 6. On November 10, 2014, it became evident that the Registration Statement’s description of the Company’s operations and finances were materially misleading and/or inaccurate. After the market closed, Vivint Solar issued a press release announcing its earnings for the third quarter of fiscal 2014. The press release indicated that Vivint Solar had suffered a “Non-GAAP Earnings Before Non-Controlling Interests and Redeemable Non-Controlling Interests per Share” loss of ($0.66) per share. Analysts, meanwhile, had been projecting a loss of only ($0.27) per share. In other words, Vivint Solar missed analyst projections by 143%. The press release also indicated that the Company would be lowering its guidance for the fourth quarter, signaling to the market that growth would be slowing. 3 Case 1:14-cv-09283-KBF Document 42 Filed 02/13/15 Page
Load more

Recommended publications
  • Vivint Solar Power Purchase Agreement
    Vivint Solar Power Purchase Agreement Odin squires insubstantially while flighted Winslow misteach superstitiously or dogmatized geocentrically. Beaked Richard obstructively,usually peduncular however some anthropopathic beagling or resaluting Heinz shark mythically. voluntarily Unmechanised or prized. Chip hemorrhages or bus some parsons Has not be binding upon a purchase solar panels increase as may be. Can you pay off a sample lease? SunEdison to buy Vivint Solar 523 MW in rooftop solar power. If reverse current home owner has perfect Power purchase Agreement PPA or Lease Agreement also means Vivint Solar owns the system should they fan a switch Purchase. Flexible financing options power purchase agreements or lease agreements. The previous owners seemed to bash a Power up Agreement. In gentle power protect agreement PPA you'll ripe for essential solar electricity. The acquisition of Vivint Solar SECgov. Vivint Solar Adds Battery Storage Option for Solar PPAs Solar. 13 Verified Vivint Solar Reviews Is Vivint Solar Legit. Form to compensate such purchased on your home owners not be delegated as are unsecured and other applicable to such delegation at nj is the purchase agreement between you. Once a buyer is tooth and a diverse contract this the foot of nest home is negotiated between. Selling your solar prime Solar United Neighbors. Vivint Solar Panel Installation Woodnet Forums. Delaware limited liability claim attacking the vivint power! Vivint Solar agrees to pay 122K fine over charges of. Vivint Solar and we team can to help homeowners go solar. Sign in Google Accounts Google Sites. Customers save simply on energy through Vivint Solar's power generation agreement PPA in which customers agree to feedback the power.
    [Show full text]
  • UNITED STATES DISTRICT COURT SOUTHERN DISTRICT of NEW YORK X BRENNEN HYATT, Individually and on Behalf of All Others Similarly
    UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK x BRENNEN HYATT, Individually and on : Civil Action No. Behalf of All Others Similarly Situated, : : CLASS ACTION Plaintiff, : : COMPLAINT FOR VIOLATION OF THE vs. : FEDERAL SECURITIES LAWS : VIVINT SOLAR, INC., THE BLACKSTONE : GROUP L.P., GREGORY S. BUTTERFIELD, : DANA C. RUSSELL, DAVID F. : D’ALESSANDRO, ALEX J. DUNN, BRUCE : McEVOY, TODD R. PEDERSEN, JOSEPH F. : TRUSTEY, PETER F. WALLACE, JOSEPH : S. TIBBETTS, GOLDMAN, SACHS & CO., : MERRILL LYNCH, PIERCE, FENNER & : SMITH INCORPORATED, CREDIT SUISSE : SECURITIES (USA) LLC, CITIGROUP : GLOBAL MARKETS INC., DEUTSCHE : BANK SECURITIES INC., MORGAN : STANLEY & CO. LLC, BARCLAYS : CAPITAL INC. and BLACKSTONE : ADVISORY PARTNERS L.P., : : Defendants. : x DEMAND FOR JURY TRIAL Plaintiff Brennen Hyatt (“plaintiff”) alleges the following based upon the investigation of plaintiff’s counsel, which included a review of United States Securities and Exchange Commission (“SEC”) filings by Vivint Solar, Inc. (“Vivint” or the “Company”), as well as regulatory filings and reports, securities analyst reports and advisories about the Company, press releases and other public statements issued by the Company, and media reports about the Company, and believes that substantial additional evidentiary support will exist for the allegations set forth herein after a reasonable opportunity for discovery. NATURE OF THE ACTION 1. This is a securities class action on behalf of all purchasers of the common stock of Vivint pursuant and/or traceable to the Registration Statement issued in connection with Vivint’s October 1, 2014 initial public stock offering (the “IPO”), seeking to pursue remedies under the Securities Act of 1933 (the “Securities Act”). JURISDICTION AND VENUE 2.
    [Show full text]
  • Petition for Declaratory Statement Concerning Leasing of Solar
    BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION In re: Petition for declaratory statement DOCKET NO. 20180124-EQ concerning leasing of solar equipment, by ORDER NO. PSC-2018-0413-DS-EQ Vivint Solar Developer, LLC. ISSUED: August 21, 2018 The following Commissioners participated in the disposition of this matter: ART GRAHAM, Chairman JULIE I. BROWN DONALD J. POLMANN GARY F. CLARK ANDREW GILES FAY DECLARATORY STATEMENT BY THE COMMISSION: I. BACKGROUND On May 23, 2018, Petitioner, Vivint Solar Developer, LLC (Vivint), filed a petition for a declaratory statement (Petition). Vivint asks us to declare that based on the facts presented by Vivint: (1) Vivint’s proposed residential solar equipment lease, as described by its petition, will not be deemed to constitute a sale of electricity; (2) Offering its solar equipment lease to consumers in Florida will not cause Vivint to be deemed a public utility; and (3) The residential solar equipment lease described in its petition will not subject Vivint or Vivint’s customer-lessees to regulation by this Commission. Pursuant to Rule 28-105.0024, Florida Administrative Code (F.A.C.), a Notice of Declaratory Statement was published in the May 29, 2018, edition of the Florida Administrative Register, informing interested persons of the Petition. There were no requests to intervene filed. We have jurisdiction pursuant to Section 120.565, F.S., and Chapter 366, F.S. Vivint’s Petition asks us to declare whether Vivint’s solar leasing program as described in Vivint’s Petition will make Vivint or its lease customers a public utility subject to our jurisdiction under Section 366.02(1), F.S.
    [Show full text]
  • Sunrun and Vivint Solar Written Testimony on Hb 5002
    SUNRUN AND VIVINT SOLAR WRITTEN TESTIMONY ON HB 5002: An Act Concerning the Development of a Green New Deal and HB 5237: An Act Requiring a Study of Energy Storage Projects & Distributed Generation February 21, 2019 Dear Energy Technology Committee Leaders and Members: Sunrun and Vivint Solar, two of the largest residential solar companies in the United States, appreciate the opportunity to provide written testimony on this legislation. Our companies employ thousands of solar workers across more than 20 states, including Connecticut, and often partner with state legislatures on policies to grow solar energy and solar jobs. Last year the legislature enacted one of the most regressive solar policies in the nation. Senate Bill 9 / Public Act 18-50 eliminated “net metering,” which is offered in 38 states1 and provides bill credits to solar owners for their excess clean energy sent to the grid. Senate Bill 9 replaces net metering with two policies that have reduced solar installations and have killed solar jobs in other states.2 The 2,200 jobs your constituents hold in Connecticut’s solar industry are now in jeopardy. We have tried to communicate this risk to the legislature, DEEP and PURA over the last year (see attached), but we feel our concerns have not been taken seriously. Without legislative action this session, significant job loss will likely occur when net metering expires in the third quarter of this year. Regarding HB 5002, Sunrun and Vivint Solar support policies that promote clean energy, such as a Green New Deal, but saving Connecticut’s 2,200 solar jobs should take precedence over any other measure.
    [Show full text]
  • Enphase Energy and Vivint Solar Sign Three-Year Strategic Agreement
    August 12, 2014 Enphase Energy and Vivint Solar Sign Three-Year Strategic Agreement Leading residential solar provider renews relationship with Enphase as a valued technology partner PETALUMA, Calif.--(BUSINESS WIRE)-- Enphase Energy (NASDAQ: ENPH) announced today the renewal of its strategic inverter agreement with an affiliate of Vivint Solar, Inc., a leading provider of residential solar energy systems in the United States. The new multi-year agreement expands on the existing relationship between the two companies. "The renewal of Enphase's inverter supply agreement with Vivint Solar strengthens our ongoing strategic relationship," said Jeff Loebbaka, senior vice president of worldwide sales and field operations at Enphase. "We believe the winning combination of the Enphase microinverter-based solar energy management system and Vivint Solar's innovative consumer- friendly business approach provides a compelling offering for the U.S. residential rooftop solar sector." "Enphase Energy is a valued technology partner to Vivint Solar and we are proud to continue installing its microinverters on residential solar rooftops," said Jan Newman, vice president of business development at Vivint Solar. Vivint Solar designs, installs, monitors and services the system with no upfront costs to the homeowner. Through a power purchase agreement (PPA) or solar energy system lease, a homeowner can use the power generated by a solar photovoltaic system and generally realize savings relative to the prevailing electric utility provider rates. Vivint Solar currently operates in Arizona, California, Hawaii, Maryland, Massachusetts, New Jersey and New York. Enphase continues to see robust demand for its market-leading microinverter technology with current and new customers from larger companies like Vivint Solar to small professional solar installers.
    [Show full text]
  • Renewable Energy Electric Las Vegas Nv
    Renewable Energy Electric Las Vegas Nv Is Donnie incensed when Maury pize asymmetrically? Slant and conjoint Hamlet target his clarinet cower indagate bitter. Eminently cissoid, Aram desulphurise rampions and uptorn baldrick. In the accuracy of nv energy electric las vegas means great option for the opal trading hub for your comment on weather, are based on their crews often VEA partnered with Bombard Renewable Energy of Las Vegas. Would have allowed electric utility companies to offer electricity made from renewable energy to. Nevada solar industry collapses after state lets power. NV Energy Inc Electric Energy Online. Robco Electric Las Vegas Las Vegas Solar Power. Techren II HV Substation Rosendin Electric. Sol-Up offers design and installation of solar panels in Las Vegas and the. The Average Electric Bill In Las Vegas Sharing My Energy. The changes by NV Energy are deaf of a national trend in for utility companies. Lots of sun & AC usage chart that Las Vegas is delight for solar. The Renewables Portfolio Standard RPS in Nevada mandates that by 2025. Acciona is a renewable energy company based in Spain. A Renewable Portfolio Standard RPS requires electric-. 20 Best solar energy jobs in Las Vegas NV Hiring Now. Update newsletter with the preferred premier subcontractor for nv energy. Clean Energy NV Energy. My home mortgage simply because retirees choosing henderson, nv energy to add to be passed both commercial water, which is rescheduled for berkshire hathaway energy! Bell Solar & Electrical Systems is insure the forefront of the renewable energy revolution We climb the highest quality materials with all best play service in.
    [Show full text]
  • (775)-684-1108 the Honorable Adam Laxalt Attorney General of Nevada
    October 23, 2018 BY FAX: (775)-684-1108 The Honorable Adam Laxalt Attorney General of Nevada 100 North Carson Street Carson City, NV 89701 BY MAIL: U.S. Postal Inspection Service Criminal Investigations Service Center ATTN: Mail Fraud 433 W Harrison Street, Room 3255 Chicago, IL 60699-3255 Re: Request for Investigation of Vivint Solar Dear Attorney General Laxalt: Campaign for Accountability (CfA), a nonprofit watchdog group in Washington, DC, respectfully renews its request for an investigation into rooftop solar companies with specific attention to Vivint Solar. On April 24, 2018, CfA requested an investigation into Vivint Solar Holdings, Inc. and other rooftop solar companies following the New Mexico Attorney General’s lawsuit against the company.1 After CfA submitted the request, a local media outlet uncovered evidence that Vivint is continuing to victimize consumers in Nevada. Background In the fall of 2016, CfA launched a nationwide investigation into the deceptive marketing practices of solar companies, after two consumer watchdogs – Public Citizen and the National Consumer Law Center – warned government regulators about the exploitative contracts used by 1 Letter from CfA Executive Director Daniel Stevens to Attorney General Adam Laxalt, April 24, 2018, available at https://campaignforaccountability.org/work/letters-to-attorneys-general-in-arizona-nevada-and-new-york-calling- for-investigations-of-rooftop-solar-industry/. 611 Pennsylvania Ave., S.E. #337 Washington, D.C. 20003 (202) 780-5750 campaignforaccountability.org The
    [Show full text]
  • 1- Docket No. DE 15-303 Vivint Solar Inc., Petition for Declaratory Ruling
    Docket No. DE 15-303 Vivint Solar Inc., Petition for Declaratory Ruling regarding RSA 362:2, 362-A:2-a and Rule PUC 2002.05 VIVINT SOLAR, INC. RESPONSE TO STATE OF NEW HAMPSHIRE PUBLIC UTILITIES COMMISSION STAFF DATA REQUESTS Vivint Solar, Inc. (“Vivint Solar”) hereby responds to Data Requests from Commission Staff to Petitioner – Set 1. Vivint Solar is seeking confidential treatment of several of these responses and attachments hereto pursuant to PUC Rule 203.08(d). The responses and attachments for which Vivint Solar will move to obtain a protective order for confidential treatment are indicated in its responses below. All pages containing information which is intended to be the subject of such protective order are marked “CONFIDENTIAL” in the upper right hand corner of the page and the text to be redacted in the redacted version is highlighted in light grey per PUC Rule 201.04(c). Vivint Solar will seek a protective order for the following documents attached in response to this request to be treated as confidential in their entirety: PPA, Lease, Exhibit B to the PPA, Exhibit B to the Lease and Customer Packet. -1- VIVINT SOLAR, INC. DOCKET NO. DE 15-303 DATA REQUESTS FROM COMMISSION STAFF TO PETITIONER – SET 1 Date Request Received: 10/16/15 Date of Response: 10/26/15 Request No. Staff 1-1 Witness: Garner Meads REQUEST: Please provide a copy of the form of solar power purchase agreement (PPA) that Vivint Solar, Inc., or any of its subsidiaries or other affiliates (individually and collectively, Vivint), would propose to use in connection with residential photovoltaic installations in New Hampshire, if available, including any related warranties, exhibits, notices, and customer disclosures.
    [Show full text]
  • VIVINT SOLAR, INC. (Exact Name of Registrant As Specified in Its Charter)
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36642 VIVINT SOLAR, INC. (Exact name of Registrant as specified in its Charter) Delaware 45-5605880 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1800 West Ashton Blvd. Lehi, UT 84043 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (877) 404-4129 Securities registered pursuant to Section 12(b) of the Act: Trading Title of each class Symbol(s) Name of each exchange on which registered Common Stock, par value $0.01 per share VSLR New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
    [Show full text]
  • Petition of Vivint Solar Developer, LLC for Declaratory Statement Regardin
    BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION In re: Petition of Vivint Solar Developer, Docket No. ______________ LLC for Declaratory Statement Regarding Leasing of Solar Equipment Filed: May 23, 2018 _________________________________/ PETITION FOR DECLARATORY STATEMENT BY VIVINT SOLAR DEVELOPER, LLC Pursuant to Section 120.565, Florida Statutes, and Rule 28-105.002, Florida Administrative Code, Vivint Solar Developer, LLC. (“Vivint Solar”) petitions the Florida Public Service Commission (“Commission”) for a declaratory statement that: (1) Vivint Solar’s residential solar equipment lease does not constitute a sale of electricity; (2) offering its solar equipment lease to consumers in Florida will not cause Vivint Solar to be deemed a public utility under Florida law; and (3) the residential solar equipment lease described in this petition will not subject Vivint Solar or Vivint Solar’s customer-lessees to regulation by this Commission. 1. Vivint Solar’s proposed residential solar equipment lease, a draft copy of which is attached hereto as Exhibit “A,” comprises a standard equipment lease agreement for the lease of solar generating equipment to residential customer-lessees and includes Vivint Solar’s basic workmanship warranty and service to repair or replace defective equipment. Vivint Solar offers its draft lease for the limited purpose of Commission review to verify the facts as set forth in this Petition. In support of its petition, Vivint Solar states: 2. The name and address of the agency affected by this Petition: Florida Public Service Commission 2540 Shumard Oak Blvd Tallahassee, FL 32399-0850 1 3. The name and address of Petitioner are: Vivint Solar Developer, LLC 1800 W.
    [Show full text]
  • The Unintended Consequences of Net Metering*
    The Unintended Consequences of Net Metering* At first glance, the concept of promoting rooftop solar energy seems like a good idea: homeowners are incentivized to buy or lease solar panels; they benefit from reduced reliance on their local utility for electricity; they benefit directly from clean solar energy; and they sell any excess power to the electric utility for credit or payment. The subsidies, in theory, make solar energy an affordable alternative for consumers. But that is not the whole story. As this ConsumerGram shows, net metering can produce many unintended consequences that in the end lead to higher costs for all consumers. What is Net Metering? Net metering is a program that allows consumers to generate energy from rooftop solar panels for their own use and to offset the cost of any energy they purchase from electric utilities. Because solar panels can be costly to purchase and install in homes, homeowners generally finance or lease the cost of these solar panels. In an effort to reduce the costs of solar energy and encourage the production of carbon- free energy, regulators and policymakers, both state and federal, have put a number of measures in place to incentivize homeowner investment in solar panel systems. These measures come in the form of federal tax credits for solar panel equipment and installation and, in some cases, a host of other state tax breaks and other incentives. In California, for example, net metering homeowners have received renewable energy credits, as well as a financial rebates for car chargers, preferential access to carpools and free use of public charging stations.1 In addition to these incentives, states allow homeowners with solar panels to sell the excess power they produce from their rooftops to their electric utility for credit or payment.
    [Show full text]
  • Enphase Energy and Vivint Solar Renew Inverter Solution Agreement
    April 3, 2013 Enphase Energy and Vivint Solar Renew Inverter Solution Agreement Vivint Solar chooses Enphase as 2013 inverter supplier PETALUMA, Calif.--(BUSINESS WIRE)-- Enphase Energy (Nasdaq: ENPH) today announced the renewal of its relationship with Vivint Solar, Inc. to be their inverter solution for 2013. Vivint Solar is an affiliate of Vivint Inc., a leading provider of home technology services in North America. "We are delighted to continue building off our powerful strategic relationship with Vivint Solar. For over a year-and-a-half, our advanced inverter technology, coupled with Vivint Solar's unique go-to-market, has helped accelerate them toward their goal of becoming the top U.S. installer of residential rooftop solar systems," said Jeff Loebbaka, senior vice president of worldwide sales and field operations of Enphase Energy. Vivint Solar customers save money on energy through a power purchase agreement (PPA) in which customers agree to buy the power generated by a solar photovoltaic system installed on their home, at rates that are generally lower than their local utility. In exchange, Vivint Solar designs, installs, operates and maintains the system with no additional out-of-pocket costs for the customers. This business model provides homeowners the benefits of renewable solar energy without a large, upfront investment. "We are focused on nationwide expansion of our affordable solar offering, and we adopted Enphase early on because of the value their inverter solution delivers," said Dan Rock, vice president of installs of Vivint Solar. "Enphase inverters provide flexibility to Vivint Solar's installation crews and provide Vivint Solar's customers with more efficient solar energy systems, resulting in enhanced savings to our customers." Vivint Solar currently operates in California, Hawaii, Maryland, Massachusetts, New Jersey, New York, and Washington D.C.
    [Show full text]