investinginthesun withvivint solar. · this presentation contains forward-looking statements. these...

Investing in the Sunwith Vivint Solar.

Q1 2020 Financial ResultsMay 7, 2020

Forward Looking Statements

This presentation contains forward-looking

statements. These statements may relate to, but are

not limited to, expectations of future operating

results or financial performance, such as estimates of

nominal contracted payments remaining, estimated

retained value, the capacity of solar energy systems

to be installed, the market price of electricity,

introduction of new products, the sustainability of

our business, expansion into new markets and our

projected sales mix, regulatory compliance, plans for

growth and future operations, demand for certain

products, technological capabilities, strategic

relationships as well as assumptions related to the

foregoing.

Forward-looking statements are inherently subject to

risks and uncertainties, some of which cannot be

predicted or quantified. In some cases, you can

identify forward-looking statements by terminology

such as “may,” “will,” “should,” “could,” “expect,”

“plan,” “anticipate,” “believe,” “estimate,”

“predict,” “intend,” “potential,” “would,”

“continue,” “ongoing” or the negative of these

terms or other comparable terminology. You should

not put undue reliance on any forward-looking

statements. 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.

Forward-looking statements are based on

information available at the time those statements

are made and/or management’s good faith beliefs

and assumptions as of that time with respect to

future events, and 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 continued negative

impact of the COVID-19 pandemic on general

economic conditions, the capital and credit markets,

and Vivint Solar’s business, financial condition,

liquidity and results of operations; the availability of

additional financing on acceptable terms; changes in

the retail price of traditional utility generated

electricity; changes in electric utility policies and

regulations; the availability of rebates, tax credits

and other incentives, including solar renewable

energy certificates, or SRECs, and other federal and

state incentives; regulations and policies related to

net metering; changes in regulations, tariffs and

other trade barriers and tax policy affecting us and

our industry; our ability to manage our recent and

future growth, product offering mix, and costs

effectively, including attracting, training and

retaining sales professionals and solar energy system

installers; the availability and price of solar panels

and other system components; the potential

inaccuracy of the assumptions employed in

calculating our operating metrics; the course and

outcome of litigation, regulatory investigations and

other disputes; macroeconomic conditions; and such

other risks identified in the registration statements

and reports that Vivint Solar files with the U.S.

Securities and Exchange Commission, or SEC, from

time to time. Although we believe that the

expectations reflected in the forward-looking

statements are reasonable, we cannot guarantee

that the future results, levels of activity, performance

or events and circumstances reflected in those

statements will be achieved or will occur, and actual

results could differ materially from those anticipated

or implied in the forward-looking statements. Except

as required by law, Vivint Solar does not undertake

and expressly disclaims any obligation to publicly

update or revise any forward looking statement,

whether as a result of new information, future

developments or otherwise.

Vivint Solar has rights to the trademark “Vivint

Solar.” Solely for convenience, trademarks, and

trade names referred to in this presentation,

including logos, artwork and other visual displays,

may appear without the ® or TM symbols, but such

references are not intended to indicate in any way

that the company will not assert, to the fullest extent

under applicable law, the rights of the applicable

licensor to these trademarks and trade names.

COPYRIGHT © 2020 VIVINT SOLAR, INC. ALL RIGHTS RESERVED. 2

ROOFTOP SOLAR POWER

ELECTRIC VEHICLES & CHARGERS

RESIDENTIAL BATTERY STORAGE

SMART HOME TECHNOLOGYEmpower families to take control of their energy future.

Our Vision:

How We Do That:

Solutions for the EmergingEnergy Ecosystem

By providing solutions that give consumers a choice in how they create and consume power.


1.

Focused OnThe Long GameOUR OPERATING PRINCIPLES

The Vivint Solar Difference

We believe that being responsible citizens in an unpredictable industry makes us a better option for our customers and our shareholders. Our guiding principles define how we run our business, and we believe that you can see a difference when you compare Vivint Solar to competitors in our industry.

Building the most sustainable business in the industry

2. Delighting our customers

3. Delivering differentiated solutions

4. Accessing capital on favorable terms

5. Growing profitably


MWs Installed


MEASURED IN MEGAWATTS

7.2 6.3 7.5 8.9 7.1 8.5 9.4 13.4 6.4

33.2 40.7

46.8 45.4 38.5

47.5 55.7

53.0

49.7

40.4

47.0

54.3 54.3

45.6

56.0

65.1 66.4

56.1

-

10

20

30

40

50

60

70

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1'20

System Sale PPA/ Lease

Revenue


$ AMOUNTS IN MILL IONS

Note: Amounts may not add due to rounding.

$37.1$26.0 $24.3 $28.7 $29.8 $27.4 $33.0 $33.5 $39.9

$31.1 $54.8 $53.5 $34.7

$39.6

$63.4

$70.8

$43.6

$51.3 $68.3

$80.8 $77.8

$63.5 $69.4

$90.8

$103.8

$77.1

$91.2

$-

$20

$40

$60

$80

$100

$120

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

Solar energy system and product sales Operating leases and incentives

Cost per Watt


Cost efficiency is key to sustainability and market expansion.

Lowering cost per watt increases the margin from our system sales at a given price and allows our project funding to cover more of the costs of installation of PPAs and leases. This frees operating cash flows to facilitate faster growth, market expansion, and increased enterprise value.

COPYRIGHT © 2020 VIVINT SOLAR, INC. ALL RIGHTS RESERVED.Note: The cost per watt methodology changed in Q4’18 to use a constant denominator of MWs Installed. Prior periods have been restated to use the new methodology.

$1.93 $1.85 $1.77 $1.78 $1.85 $1.79 $1.78 $1.84 $1.95

$0.84 $0.96 $1.03 $1.06 $1.16 $1.27 $1.37 $1.35$1.41

$0.44 $0.42 $0.36 $0.34$0.45 $0.50 $0.33 $0.35

$0.44$3.22 $3.23 $3.16 $3.18$3.46 $3.56 $3.48 $3.54

$3.80

$0.00

$1.00

$2.00

$3.00

$4.00

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

Installation Sales & Marketing G&A

CPW

How does Vivint Solar calculate unit cost?

To derive a consistent unit cost it is imperative that a consistent denominator be used. Vivint Solar uses total MWs Installed during the period. This provides a unit cost that is a weighted average of Vivint Solar’s PPA / Lease business with its system and products sales business. This consistency allows for the accurate calculation of a unit margin.

COPYRIGHT © 2020 VIVINT SOLAR, INC. ALL RIGHTS RESERVED. 8Note: Cost per Watt memo provides detailed explanations for amounts shown above.

Methodology$ amounts in thousands

Q1 '20MW Installed 56.1

InstallationSystem equipment costs (BS Note) 67,438$ Cost of revenue - customer agreements and incentives (IS) 52,823 Cost of revenue - solar energy system and product sale (IS) 22,048 WIP - System equipment costs (BS Note) (6,191) Less: Stock-based compensation (BS Note) (368) Less: Depreciation and amortization (BS Note) (14,770) Less: Fleet Performance & post PTO expenses (11,454)

Total Installation costs 109,526$

Sales & MarketingCosts to obtain contracts (BS Note) 47,650$ Customer incentives (BS - Other current & non-current assets) 266 Sales & Marketing (IS) 39,608 WIP - Cost to obtain SPA contracts (BS Note - prepaid assets) (4,605) Residual payments (BS Note) (2,705) Less: Stock-based compensation (BS Note) (956)

Total Sales & Marketing Costs 79,258$

General & Administrative

General & Administrative (IS) 28,026$ Less: Stock-based compensation (BS Note) (2,583) Less: One-time expense (680)

General & Administrative Costs 24,763$

Total Costs 213,547$

Total Costs / Watt 3.80$

Project Value & What is Project Value per Watt?

Project value per watt represents the estimated net cash flows, discounted at 6% that Vivint Solar expects to receive from customers net of estimated distributions to fund investors and operating expenses, estimated utility and state incentives, and estimated proceeds from fund investors.

How does Vivint Solar estimate its margin?

Value created in the period represents the estimated margin created during the period. It is simply the estimated value created during the period net of the costs associated with creating the value. Specifically it is the sum of the project value of PPA/Leases and revenue from system and product sales less the associated cost of creating the value.

COPYRIGHT © 2020 VIVINT SOLAR, INC. ALL RIGHTS RESERVED. 9Note: Totals may not sum due to rounding.

MarginQ1 '20

Project Value per Watt - PPA / Leases (PV6)

Contract Project Value per Watt - PPA / Leases 4.17$

Renewal Project Value per Watt - PPA / Leases 0.53

Project Value per Watt - PPA / Leases 4.69$

MWs Installed - PPA / Lease 49.7

Project Value - PPA / Leases (in millions) 233$

Margin Created (in millions)

Plus: Project Value - PPA / Leases (PV6) 233$

Plus: Project Value - System & Product Sales 40

Less: Cost to Create (214)

Margin Created (PV6) 60$

MWs Installed 56.1

NPV / Watt 1.06$

Gross Retained Value


$ AMOUNTS IN MILL IONS

Note: Totals may not sum due to rounding.

$1,348 $1,441 $1,483 $1,517 $1,550 $1,587 $1,626 $1,690 $1,748

$397$425 $452 $480 $501 $532 $567

$601 $631$1,744

$1,865 $1,934 $1,997 $2,051 $2,119 $2,193$2,291

$2,378

$0

$500

$1,000

$1,500

$2,000

$2,500

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1'20

Gross retained value - contract Gross retained value - renewal

MeasuringLong-Term ValueUSING ESTIMATED NET RETAINED VALUE

What is Estimated Net Retained Value?

Estimated Net Retained Value represents the asset value that would remain after repaying all debt. It is calculated by taking Estimated Gross Retained Value, subtracting all debt, and adding back any debt associated with forward flow arrangements, cash & cash equivalents, and restricted cash.

Why does Vivint Solar use Estimated Net Retained Value to measure long-term value creation?

Estimated net retained value captures the residual asset value that is available to equity holders at a given point in time. As Vivint Solar continues to develop and retain ownership of solar systems, we believe that estimated net retained value will increase over time, resulting in increasing value to our shareholders.

EST IMATED NET RETAINED VALUE:

EST IMATED NET RETAINED VALUE PER SHARE:

COPYRIGHT © 2020 VIVINT SOLAR, INC. ALL RIGHTS RESERVED. 11Note: The presentation of estimated net retained value changed to include contracted SREC value for all periods.

$0.88 B $0.96 B $1.02 B $1.11 B $1.14 B $1.17 B $1.26 B $1.23 B $1.25 B

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

$7.65 $8.13 $8.57 $9.20 $9.48 $9.62 $10.32 $9.99 $10.00

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

Appendices

727 774 820 865 905 952 1,007

1,061 1,107 1,163

1,228 1,294

1,350

Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

MEASURED IN MEGAWATTS

CumulativeInstalled Capacity

CAGR: 23%

PPA / Lease 37.3 36.5 36.1 32.9 33.2 40.7 46.8 45.4 38.5 47.5 55.7 53.0 49.7

System Sales 8.5 10.4 10.4 11.7 7.2 6.3 7.5 8.9 7.1 8.5 9.4 13.4 6.4

Total Cumulative MWs Installed

726.9 773.8 820.3 864.9 905.3 952.3 1,006.6 1,060.9 1,106.5 1,162.5 1,227.6 1,294.0 1,350.1


Estimated Retained Value

Retained ValueSensitivities


Estimated Retained Value per Watt$ amount s i n mi l l i ons

Note : Sums may no t to ta l due to round ing . Note : Sums may no t to ta l due to round ing .

4% 6% 8% 4% 6% 8%

Contracted 2,046$ 1,748$ 1,511$ Contracted 1.69$ 1.45$ 1.25$

Renewal 965$ 631$ 417$ Renewal 0.80$ 0.52$ 0.35$

Total 3,011$ 2,378$ 1,927$ Total 2.49$ 1.97$ 1.60$


Operating MetricsQ1 18 Q2 18 Q3 18 Q4 18 FY2018 Q1 19 Q2 19 Q3 19 Q4 19 FY2019 Q1 20

PPA/ Lease 33.2 40.7 46.8 45.4 166.1 38.5 47.5 55.7 53.0 194.7 49.7 System Sale 7.2 6.3 7.5 8.9 29.9 7.1 8.5 9.4 13.4 38.4 6.4

MW Installed 40.4 47.0 54.3 54.3 196.0 45.6 56.0 65.1 66.4 233.1 56.1 Sequential growth rate (9)% 16% 16% 0% (16)% 23% 16% 2% (16)%

Period over period growth rate (12)% 0% 17% 22% 7% 13% 19% 20% 22% 19% 23%

PPA/Lease 842.8 883.5 930.3 975.8 975.8 1,014.3 1,061.8 1,117.5 1,170.5 1,170.5 1,220.2 System sale 62.5 68.8 76.3 85.1 85.1 92.2 100.7 110.1 123.5 123.5 129.9

Cumulative MW Installed 905.3 952.3 1,006.6 1,060.9 1,060.9 1,106.5 1,162.5 1,227.6 1,294.0 1,294.0 1,350.1 Sequential growth rate 5% 5% 6% 5% 4% 5% 6% 5% 4%

Period over period growth rate 25% 23% 23% 23% 23% 22% 22% 22% 22% 22% 22%

Installation 1.93$ 1.85$ 1.77$ 1.78$ 1.83$ 1.85$ 1.79$ 1.78$ 1.84$ 1.81$ 1.95$ Sales & Marketing 0.84 0.96 1.03 1.06 0.94 1.16 1.27 1.37 1.35 1.30 1.41 General & Administrative 0.44 0.42 0.36 0.34 0.43 0.45 0.50 0.33 0.35 0.40 0.44

Cost per watt 3.22$ 3.23$ 3.16$ 3.18$ 3.20$ 3.46$ 3.56$ 3.48$ 3.54$ 3.52$ 3.80$

Estimated retained value - contract ($ in millions) 1,347.9$ 1,440.7$ 1,482.7$ 1,517.0$ 1,517.0$ 1,549.7$ 1,587.0$ 1,626.2$ 1,690.0$ 1,690.0$ 1,747.7$ Estimated retained value - renewal 396.6 424.7 451.8 479.7 479.7 501.0 531.6 566.5 600.7 600.7 630.6

Estimated retained value 1,744.5$ 1,865.4$ 1,934.5$ 1,996.7$ 1,996.7$ 2,050.7$ 2,118.6$ 2,192.8$ 2,290.7$ 2,290.7$ 2,378.3$ Sequential growth rate 5% 7% 4% 3% 3% 3% 4% 4% 4%


Estimated retained value per watt - contract 1.61$ 1.64$ 1.61$ 1.57$ 1.57$ 1.54$ 1.51$ 1.47$ 1.46$ 1.46$ 1.45$ Estimated retained value per watt - renewal 0.47 0.48 0.49 0.50 0.50 0.50 0.51 0.51 0.52 0.52 0.52

Estimated retained value per watt 2.08$ 2.13$ 2.09$ 2.06$ 2.06$ 2.04$ 2.02$ 1.98$ 1.98$ 1.98$ 1.97$

Project value - contracted 3.41$ 3.60$ 3.82$ 3.87$ 3.70$ 3.95$ 4.10$ 4.14$ 4.15$ 4.10$ 4.17$ Project value - renewal 0.44 0.49 0.53 0.55 0.51 0.56 0.57 0.57 0.56 0.57 0.53

Project value - PPA / Leases 3.85$ 4.09$ 4.35$ 4.42$ 4.20$ 4.51$ 4.67$ 4.71$ 4.71$ 4.66$ 4.69$

Plus: Project value - PPA / Leases ($ in millions) 127.7$ 166.4$ 203.5$ 200.8$ 698.4$ 173.7$ 221.9$ 262.3$ 249.7$ 907.7$ 233.3$ Plus: Revenue - System sales & product sales 37.1 26.0 24.3 28.7 116.3 29.8 27.4 33.0 33.5 123.7 39.9 Less: Cost to create (129.9) (151.8) (171.9) (173.0) (626.6) (158.0) (200.1) (226.6) (235.5) (820.1) (213.5)

Margin created 34.9$ 40.6$ 56.0$ 56.6$ 188.1$ 45.5$ 49.2$ 68.8$ 47.7$ 211.2$ 59.6$

NPV / Watt 0.86$ 0.86$ 1.03$ 1.04$ 0.96$ 1.00$ 0.88$ 1.06$ 0.72$ 0.91$ 1.06$

Estimated retained value ($ in millions) 1,744$ 1,865$ 1,934$ 1,997$ 1,997$ 2,051$ 2,119$ 2,193$ 2,291$ 2,291$ 2,378$ Less: debt - non-recourse (852) (1,006) (1,044) (1,104) (1,104) (1,160) (1,222) (1,322) (1,426) (1,426) (1,483) Less: debt - recourse (137) (137) (137) (136) (136) (136) (131) (131) (99) (99) (114) Plus: forward flow loan agreement - - 12 58 58 100 127 175 208 208 239 Plus: cash, cash equivalents & restricted cash 126 241 257 291 291 288 278 344 256 256 226

Net retained value 882$ 963$ 1,023$ 1,106$ 1,106$ 1,143$ 1,170$ 1,259$ 1,229$ 1,229$ 1,246$ Sequential growth rate 3% 9% 6% 8% 3% 2% 8% (2)% 1%


Shares outstanding (in thousands) 115,329 118,477 119,316 120,114 120,114 120,612 121,606 122,088 123,056 123,056 124,670

Net retained value per share 7.65$ 8.13$ 8.57$ 9.20$ 9.20$ 9.48$ 9.62$ 10.32$ 9.99$ 9.99$ 10.00$

Note: Amounts may not add due to rounding.


Consolidated Financial Statement SummariesAll numbers in $ thousands, except per share amounts

Q1 18 Q2 18 Q3 18 Q4 18 FY2018 Q1 19 Q2 19 Q3 19 Q4 19 FY2019 Q1 20Statement of Operations

RevenueCustomer agreements and incentives 31,114$ 54,765$ 53,470$ 34,717$ 174,066$ 39,603$ 63,355$ 70,819$ 43,554$ 217,331$ 51,276$ Solar energy system and product sales 37,136 26,033 24,346 28,740 116,255 29,768 27,402 33,030 33,510 123,710 39,875

Total Revenue 68,250$ 80,798$ 77,816$ 63,457$ 290,321$ 69,371$ 90,757$ 103,849$ 77,064$ 341,041$ 91,151$

Cost of RevenueCost of revenue - customer agreements and incentives 38,687 41,366 42,135 42,732 164,920 40,191 43,074 48,993 54,067 186,325 52,823 Cost of revenue - solar energy system and product sales 26,045 18,990 17,700 20,640 83,375 17,263 15,791 19,444 19,723 72,221 22,048

Total cost of revenue 64,732 60,356 59,835 63,372 248,295 57,454 58,865 68,437 73,790 258,546 74,871

Gross profit (loss) 3,518 20,442 17,981 85 42,026 11,917 31,892 35,412 3,274 82,495 16,280 Operating expenses

Sales and marketing 11,125 14,033 15,841 17,951 58,950 29,634 37,037 46,121 38,402 151,194 39,608 Research and development 486 511 475 395 1,867 469 524 510 540 2,043 556 General and administrative 19,851 21,879 29,803 21,762 93,703 23,049 31,205 32,760 30,808 117,822 28,026 Amortization of intangible assets 136 130 142 - - - - - - - -

Total operating expenses 31,598 36,553 46,261 40,108 154,520 53,152 68,766 79,391 69,750 271,059 68,190

Loss from operations (28,080) (16,111) (28,280) (40,023) (112,494) (41,235) (36,874) (43,979) (66,476) (188,564) (51,910) Interest expense 16,922 11,336 18,715 18,335 65,308 19,127 19,472 22,804 20,920 82,323 21,632 Other expense (income), net (2,261) (4,109) (1) 1,833 (4,538) 1,385 1,365 3,907 (5,223) 1,434 28,358

Loss before income taxes (42,741) (23,338) (46,994) (60,191) (173,264) (61,747) (57,711) (70,690) (82,173) (272,321) (101,900) Income tax provision 18,643 35,352 25,698 26,606 106,299 27,487 29,950 50,410 43,152 150,999 23,414

Net loss (61,384) (58,690) (72,692) (86,797) (279,563) (89,234) (87,661) (121,100) (125,325) (423,320) (125,314) Net income available (loss attributable) to NCI (48,408) (76,806) (64,824) (73,933) (263,971) (62,992) (59,094) (107,265) (91,794) (321,145) (85,054)

Net income available (loss attributable) to stockholders (12,976)$ 18,116$ (7,868)$ (12,864)$ (15,592)$ (26,242)$ (28,567)$ (13,835)$ (33,531)$ (102,175)$ (40,260)$

Weighted average shares - diluted 115,155 121,753 118,767 119,626 117,565 120,307 120,869 121,730 122,307 121,310 123,922 Diluted earnings per share (0.11)$ 0.15$ (0.07)$ (0.11)$ (0.13)$ (0.22)$ (0.24)$ (0.11)$ (0.27)$ (0.84)$ (0.32)$

Balance SheetCash & cash equivalents 78,466$ 174,006$ 188,627$ 219,591$ 219,591$ 213,474$ 198,951$ 260,753$ 166,048$ 166,048$ 131,077$ Solar energy systems, net 1,727,479 1,784,800 1,858,743 1,938,874 1,938,874 1,590,888 1,637,905 1,696,129 1,759,861 1,759,861 1,854,904 Non-recourse debt 851,859 1,006,286 1,043,573 1,104,289 1,104,289 1,160,051 1,221,540 1,322,181 1,425,815 1,425,815 1,483,115 Recourse debt 136,500 136,500 136,500 136,100 136,100 136,100 131,100 131,100 99,000 99,000 114,000

Cash Flow

Cash flows from operating activities (14,171)$ (4,695)$ (4,192)$ (22,597)$ (45,655)$ (69,993)$ (71,091)$ (73,838)$ (108,245)$ (323,167)$ (95,862)$ Cash flows from investing activities (71,473) (72,996) (87,096) (97,538) (329,103) (64,168) (60,213) (63,230) (128,225) (315,836) (80,889) Cash flows from financing activities 56,945 192,152 107,556 154,063 510,716 131,749 120,338 204,046 147,914 604,047 146,499

Proceeds from NCI 42,771 65,516 86,634 105,821 300,742 84,368 75,270 124,417 100,316 384,371 85,749 Net proceeds from non-recourse debt 32,252 154,428 37,286 60,716 284,682 55,762 61,489 100,641 103,640 321,532 57,300

Glossary

Represents the number ofsolar energy systems installed on customer premises.

Installations

Represents the DC nameplate megawatt productioncapacity.

Megawatts (MWs)

Represents the aggregate megawatt nameplatecapacity of solar energy systems for which panels, inverters, and mounting and racking hardware have been installed on customer premises in the period.

MW Installed

Represents the net cash flows, discounted at 6%, that Vivint Solar expects to receive from customers pursuant to long-term customer contracts plus the value of contracted SRECs net of estimated cash distributions to fund investors, debt associated with forward flow facilities, and estimated operating expenses for systems installed as of the measurement date. For purposes of the calculation, Vivint Solar aggregates the estimated retained value from the solar energy systems during the typical 20 to 25-yearterm of Vivint Solar’s contracts, which Vivint Solar refers to as estimated retained value under energy contracts, and the estimated retained value associated with an assumed 5 to 10-year renewal term following the expiration of the initial contract term, whichVivint Solar refers to as estimated retained value of renewal. To calculate estimated retained value of renewal, Vivint Solar assumes all contracts are renewed at 90% of the contractual price in effect at the expiration of the initial term.

Estimated Gross Retained Value


Glossary

Represents the estimated margin created during the period. It is the estimated expected value of PPA / Lease agreements and the value of system sales less the costs required to create the value. Specifically it is the sum of project value per Watt multiplied by MWs Installed – PPA/Lease and Revenue – solar energy system and product sales less total creation costs.

Margin Created

Represents the net cash flows, discounted at 6%, that Vivint Solar expects to receive from customers net of estimated distributions to fund investors and operating expenses, estimated utility and state incentives, and estimated finance proceeds from fund investors.

Project Value

Represents the estimated weighted average unit margin of Vivint Solar’s PPA / Lease business and its systems sales business. It is calculated by dividing Margin Created during the period by the total MWs Installed during the period.

NPV / Watt


Glossary

Equals the sum of the remaining cash payments that Vivint Solar’s customers are expected to pay over the term of their agreements for systems installed as of the measurement date. For a power purchase agreement, Vivint Solar multiplies the contract price per kilowatt-hour by the estimated annual energy output of the associated solar energy system to determine the estimated nominal contracted payments. For a customer lease, Vivint Solar includes the monthly fees and upfront fee, if any as set forth in the lease.

Estimated Nominal Contracted Payments Remaining

Is calculated by dividing the estimated retained value as of the measurement date by the aggregate nameplate capacity of solar energy systems under long term customer contracts that have been installed as of such date, and is subject to the same assumptions and uncertainties as estimated retained value.

Estimated Gross Retained Value per Watt

Represents a forecast at the amount of megawatts that can be deployed based on committed available tax equity financing for Energy Contracts.

Undeployed Tax Equity Financing Capacity


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