The solar industry continues to shine both domestically and globally, despite falling prices for traditional fossil fuels.

Utah-based Vivint Solar, Inc. (VSLR) has grown quickly over the last few years and is now one of the largest U.S. residential solar installation companies. It has around 523 megawatts of contracted rooftop solar assets built or under development.

Vivint went public in late 2014, and has financed and installed over 40,000 solar panel systems as of the end of March 2015.

Before the Opening Bell this past Monday, Vivint's stock surged on the announcement that it was being acquired by clean energy giant SunEdison, Inc. (SUNE) and its subsidiary, TerraForm Power (TERP).

SunEdison and TerraForm Power plan to pay $2.2 billion in a combination of cash and shares of SunEdison common stock and convertible notes.

The deal, which highlights how quickly the market is growing for rooftop solar panel systems, is expected to be a trifecta of success – a win for all parties.

Sharing the Light

For clean power giant SunEdison, the deal helps its expansion plans in the solar energy space both for residential and commercial buyers.

TerraForm Power is in the position to acquire actual solar projects from Vivint Solar, both the ones already built and projects in development. It can do so as the company is structured as a yieldco, meaning it's a publicly traded company that bundles together the assets, in this case, of clean energy projects based around the long-term and predictable revenue generated by the reoccurring energy payments.

And, of course, Vivint and its shareholders are receiving $16.50 per share as part of the deal.

Ahmad Chatila, the CEO of SunEdison and Chairman of TerraForm Power, related that buying Vivint is part of the companies' plan to become a major power provider.

“SunEdison's acquisition of Vivint Solar is a logical next step in the transformation of our platform after the successful execution of our First Wind acquisition in January 2015,” said Chatila in a statement.