Sunrun's deal for Vivint Solar brings significant consolidation to U.S. market

• The companies, who have a combined customer base of 500,000, said the deal would provide $90 million in annual cost "synergies."
• It says they see room for significant growth, noting that residential solar is only at 3% penetration in the U.S.

What they're saying: "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," Sunrun CEO Lynn Jurich said in a statement.

What's next: Both companies' boards have approved the deal, but it still needs sign-off from shareholders as well as regulatory approvals. It's expected to be completed in the fourth quarter of this year, they said.

• Sunrun's stock is up over 3% in pre-market trading on Tuesday.

How it works: Greentech Media notes that while the companies' regional sales overlap considerably, they have also pursued different strategies.

• Sunrun has aggressively pushed its paired solar and battery storage systems, while Vivint "has a strong ground game and has long been a leader in door-to-door solar sales."