Corporate Funding in Solar Sector Up 10 Per cent in Q1 of 2019: Mercom


The VC funding for the solar sector stood at US$ 176 million from 13 deals in January-March quarter, as compared to US$ 161 million a year ago

Global corporate funding, including venture capital (VC) funding, public market and debt financing into the solar sector recorded a year-on-year increase of 10 per cent in the first quarter of 2019, according to a latest report by Mercom Capital Group.

Overall corporate funding into the solar sector in the given quarter was to US$ 2.8 billion as compared to US$ 2.5 billion raised in same quarter last year.

Commenting on the findings, Raj Prabhu, CEO, Mercom Capital Group, said, “Funding levels were up slightly year-over-year in Q1 2019, but the solar industry was on a much stronger footing at the beginning of this year compared to a year earlier, when the industry was hit with tariffs, subsidy and installation cuts in China, and a module oversupply situation.”


“The market is upbeat, and solar equities rebounded strongly in the first quarter. However, China is still a wild card, and depending on its 2019 policy direction, it could have a significant impact on the solar industry,” he added.

Major funding in solar downstream companies

The VC funding globally for the solar sector stood at US$ 176 million from 13 deals in January-March quarter, as compared to US$ 161 million raised in 22 deals during the same period in 2018. Solar downstream companies received the majority of funding, with US$ 111 million in seven deals.

In the first quarter of 2019, the major companies raised funding include: Yellow Door Energy raised US$ 65 million, followed by Oxford PV with US$ 41 million, BBOXX raised US$ 37 million in two deals, Aurora Solar (US$ 20 million) and PEG Africa (US$ 5 million).

According to the report, US$ 247 million were raised in solar public market financing in three deals in the said period, compared to US$ 103 million in four deals last year.

During first quarter of 2019, the announced debt financings came to US$ 2.35 billion in 19 deals as compared to US$ 2.3 billion in 18 deals in the year-ago period. On the other hand, announced large-scale project funding reached a record high of US$ 5.68 billion in 43 deals during January-March 2019 as compared to US$ 2.7 billion raised in 57 deals in the corresponding period.

In Q1 2019, merger and acquisition (M&A) activity was stable with 18 solar transactions as compared to 19 transactions a year ago. Out of 18 transactions, 14 transactions involved solar downstream companies and two transactions each involved balance of system (BoS) firms and equipment manufacturers.



Please enter your comment!
Please enter your name here

Are you human? *