First Quarter Corporate Funding in Solar Sector Close to $2 Billion

Total corporate funding, including venture capital funding, public market and debt financing into the solar sector in the first quarter has reached $1.9 billion, 31% lower compared to the $2.8 billion raised in the first quarter 2019, according to Mercom Capital Group’s recent report on funding, merger and acquisition (M&A) activity for the global solar sector in the first quarter.

The decrease in total corporate funding was primarily due to lower venture capital and public market financing activity in quarter one as the coronavirus pandemic disrupted solar markets around the world.

“Funding levels dropped in the first quarter as the coronavirus pandemic brought the global economy to a halt. Most large economies are shut down and there is minimal activity in solar markets,” says Raj Prabhu, CEO of Mercom Capital Group.

“Solar project M&A was the bright spot in this time of uncertainty, proving once again that solar is a safe long-term bet. The worst may be yet to come, but hope is that activity picks up in the second half of the year,” he adds

There were 55 large-scale solar project acquisitions (eight disclosed for $4.1 billion) in the first quarter compared to 54 large-scale solar project acquisitions (20 disclosed for $1.4 billion) in the first quarter of 2019.

Over 12 GW of solar projects were acquired in the first quarter compared to 10.1 GW in quarter four of 2019. In a YoY comparison, 5.9 GW were acquired in the first quarter of 2019.

Oil and gas majors were the most active project acquirers in the first quarter, acquiring 6,452 MW of solar projects. Investment firms acquired 4,149 MW of projects, followed by project developers which picked up 937 MW of projects.

There were 230 companies and investors covered in Mercom’s report, which is 75 pages in length and contains 66 charts, graphs and tables.

To see Mercom Capital Group’s full report on corporate solar funding, click here.

Photo: Mercom Capital Group’s landing page


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