Sunrun CEO Lynn Jurich. Photo credit: Stuart Isett/Fortune Brainstorm E, under Creative Commons license

Solar energy company Sunrun has announced it’s reached a deal to acquire Vivint Solar, the Utah-based residential solar provider that’s one of the biggest of its kind in the US. Sunrun in acquiring Vivint Solar, a publicly-traded company, in an all-stock deal that adds up to $3.2 billion. The acquisition combines two of the biggest solar providers in the US and adds up to a solar giant that’ll become the third-largest owner of solar capacity in the US. According to research firm Wood Mackenzie, Sunrun and Vivint Solar together hold a combined 17.5% of the US residential solar market.

“This transaction will increase our scale and grow our energy services network to help replace centralized, polluting power plants and accelerate the transition to a 100% clean energy future,” Sunrun CEO Lynn Jurich said in a statement. The public markets seemingly cheered the acquisition, with Sunrun shares up more than 20 percent and Vivint Solar’s up nearly 40 percent.

Together, Sunrun and Vivint Solar will have about 500,000 customers and more than 3 gigawatts of solar assets on their balance sheet. Sunrun is aiming to become the number one residential solar provider in the US, according to company officials, and sees acquiring Vivint as a way towards that. Currently, even though residential solar remains a sizeable market, it only represents about 3% of the U.S. energy market, implying a vast room for growth. Sunrun is apparently set on capitalizing on the vast room for growth in the US market.