Funding for solar sector booms to $9 billion in first nine months of 2019

Total corporate funding for the global solar sector grew to $9 billion in the first nine months (9M) of 2019, according to a recent report from global clean energy communications and consulting firm Mercom Capital Group. This represented 34% growth over the $6.7 billion in corporate funding (venture capital, private equity, public market, and debt financing) in 9M 2018.

Solar corporate funding in 9M 2019 was higher than in the three year previous, but well below the dynamite 9M 2015 where funding breached $18 billion globally.

“Corporate funding activity so far this year is ahead of last year’s levels as demand outlook looks positive, and solar public companies continue to do well. In Q3 2019, over $100 million in venture funding went to technology and manufacturing-focused companies, which is rare. Five IPOs and over a billion dollars in securitization deals so far this year have been the highlights,” said Raj Prabhu, CEO of Mercom Capital Group.

Global venture capital/private equity funding increased 13% year-over-year to reach $1 billion in 9M 2019. The top VC/PE funded companies in the period were two Indian firms – ReNew Power and Avaada – which raised $300 million and $144 million, respectively. UAE’s Yellow Door Energy raised $65 million, while the UK’s Bboxx and American firm Spruce Finance each raised $50 million.

Solar public financing rose 25% year-over-year to $2.25 billion across 13 deals, while five solar sector IPOs raked in $1.3 billion in 9M, according to the report.

Debt financing in 9M 2019 rose 43% to $5.8 billion in 37 deals, while six securitizations accounted for $1 billion.

The volume of solar mergers & acquisitions dipped slightly to 57 transactions in 9M 2019 compared to the 64 recorded in 9M 2018. The largest disclosed deals were made by European firms: Italy’s ERG acquired Perseo for $255 million; UK’s Nationalgrid bought Geronimo Ener for $100 million; and Spain’s Cobra acquired Bowpower for $97 million.

15.9 gigawatts of solar projects were acquired in 9M 2019 compared to 23.6 gigawatts in 2018, according to the Mercom report.