Let me now turn the call over to Ed.
Ed Fenster
Thanks, David. Like Lynn and David, Im
so excited about this transformational opportunity. We just have amazing prospects working together to make a bigger impact for our customers, as well as society.
As Lynn mentioned, were going to come out of the gate with half a million customers combined. That already makes us the third largest owner of solar in
the country in any and all segments and in our gross rate, we have a clear path to being number one. Well be able to raise capital more efficiently. Well be able to offer better and more affordable products and services to our customers
and with more customers and a lower cost structure, were going to be able to make a big impact shaping the future of our electric system, ensuring that it is renewable, smart, and distributed.
As the industry leader of Sunrun whos enjoyed capital cost advantages, by joining arms with Vivint Solar, we expect to further our advantages in two
ways. First, well be even more regular assurers of debt securities, which will drive down our capital costs and second, with our combined size, we will more easily appeal to investors with enormous minimum check sizes, such as pension funds,
who often enjoy a lower cost per capital. Over time, these advantages will benefit our customers and shareholders while allowing us to accelerate the adoption of affordable renewable energy.
Im also excited about the pro forma capitalization of the company. Both companies already have strong balance sheets and combined, well be even
stronger as we optimize our project finance activities across a larger platform and asset base.
Both companies enjoy a strong project finance run rate.
We shared in May that Sunruns prearranged financings provide capital to fund at above 90 percent of contracted project value, approximately 220 megawatts of leased projects. We have subsequently raised additional tax equity, again at
materially the same terms as pre-COVID, taking our prearranged committed project financed capital to approximately 250 megawatts of high advanced capital for leased projects. Again, this is measured as beyond
what we had deployed in Q1.
Vivint also has closed recent debt and tax equity commitments and has 185 megawatts of high advanced capital arranged as of
the end of June. Together, I believe we can lower the cost of capital further and accelerate the adoption of residential solar. And, with that, Ill turn the call over to Tom.
Tom vonReichbauer
Thanks, Ed. Im excited by the
magnitude of synergies we can realize through this acquisition, which will allow the combined company to operate more efficiently and reduce the cost to the consumer of going solar. As a result of similarities in our businesses, we expect to deliver
meaningful cost synergies, estimated at $90 million on an annual basis. We see opportunities across the entire cost stack, but let me highlight a few examples to make this more tangible.
First, more than 95 percent of Vivints branches are in overlapping locations with ours, with more than half of those within 10 miles of our
location. Between consolidating into one of the existing branches, were moving into a new right size location for each area. We believe we can eliminate approximately one-third of the total locations
between the two companies. This would allow us to save on rent and branch overhead expenses for instance.
Second, we will be able to eliminate redundant
spending through IT platform consolidation in areas like our ERP, CRM, and HR information systems. Within these areas, were equally excited by the opportunity to design and build the right tools for the future of Sunrun as part of this cost
reduction effort.
Third, we see opportunity to deliver cost benefits by scaling our proprietary racking technology to a larger number of customers, as
well as through improved sourcing capabilities within the solar and storage supply chains. Finally, we will see scale benefits from shared corporate functions, including accounting, HR, legal, and policy in addition to the costs associated with
being a public company.