Corporate funding for solar up 11% in H1 2019: Mercom Capital Group

V Rishi Kumar Hyderabad | Updated on July 10, 2019 Published on July 10, 2019

Corporate funding, including venture capital funding, public market, and debt financing for solar, in the first half (Jan-Jun) of 2019 was up with $6 billion raised compared to the $5.4 billion raised in H1 2018, an 11% increase year-over-year.

Mercom Capital Group in a report on funding, mergers and acquisitions, stated Corporate funding increased in Q2 2019 with $3.3 billion in 29 deals compared to the $2.7 billion in 35 deals in Q1 2019. Year-over-year funding in Q2 2019 was about 12% higher compared to the $2.9 billion in Q2 2018.

“Financial activity was up in the first half of the year and there is optimism in the global markets, which was reflected by climbing solar stock prices. Demand in Europe has picked up. Solar activity in India is expected to pick up post elections. However, China remains the wild card,” said Raj Prabhu, CEO of Mercom Capital Group.

In H1 2019, Global VC funding in the solar sector was 50% higher with $799 million compared to $531 million raised in the first half of 2018. During Q2 2019, Global VC funding increased to $622 million in 16 deals compared to $370 million raised in 15 deals in Q2 2018, almost 68% higher YoY.

Top VC/PE deals in H1 2019 included $300 million raised by Renew Power, $144 million raised by Avaada Energy, $65 million secured by Yellow Door Energy, $50 million raised by Spruce Finance, $41 million raised by Oxford Photovoltaics, $39 million raise by CleanMax Solar, and the $31 million raised by BBOXX.

Solar public market financing in H1 was 20% lower compared to the first half of 2018 with $993 million in eight deals compared to $1.2 billion in 12 deals in 1H 2018. Public market financing in the solar sector rose to $746 million in five deals in Q2 2019 compared to $247 million in three deals in Q1 2019, and $1.14 billion in eight deals during Q2 2018. Announced large-scale project funding in the first half of 2019 saw $9 billion announced for 76 projects compared to 1H 2018 when $8 billion went into 98 project funding deals.

The first half of 2019 witnessed 37 solar M&A transactions compared to 46 transactions in 1H 2018. There were 19 solar M&A transactions in Q2 2019. By comparison, there were 18 solar M&A transactions in Q1 2019 and 27 transactions in Q2 2018. Of the 19 transactions in Q2 2019, 12 involved solar downstream companies, four involved equipment manufacturers, two solar PV manufacturers, and one deal involved a solar service provider. In all about 262 companies and investors covered in this report. It is 85 pages in length and contains 76 charts, graphs, and tables.

Published on July 10, 2019

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