The all-stock deal will leave Tesla further behind as a provider of residential solar panels and batteries.
The acquisition would roll together two companies with significantly overlapping business models and similar visions for a distributed energy future.
“Vivint Solar adds an important and high-quality sales channel that enables our combined company to reach more households and raise awareness about the benefits of home solar and batteries,” said Lynn Jurich, Sunrun’s chief executive, and co-founder in the announcement.
Though Sunrun and Vivint Solar have slightly different geographic coverage areas, both install rooftop solar across much of the U.S through leases, loans, and direct sales.
According to the deal, Vivint Solar shareholders would get 0.55 shares of Sunrun for every share held, leaving Vivint Solar shareholders with about a 36% stake in the combined company. The companies said the merger will deliver an annual cost savings of about $90 million.
This deal comes as America’s rooftop solar industry works its way back from the worst of the coronavirus pandemic.