Total Corporate Funding in Solar Sector Rises 20%, Reaching $11.7 Billion in 2019

(Credit: Mercom Capital)

Total corporate funding into the solar sector globally, including venture capital and private equity, debt financing, and public market financing, came to $11.7 billion compared to the $9.7 billion raised in 2018. That’s according to a recent report from Mercom Capital Group, LLC.

“Financial activity was up across the board in the solar sector in 2019 with venture funding, public market, and debt financing all increasing year-over-year. Solar equities also had a great year with six solar IPOs around the world. These notable metrics, along with robust debt financing activity including securitization deals, rounded off a strong year for the sector,” said Raj Prabhu, CEO of Mercom Capital Group.

Global VC/PE funding in the solar sector in 2019 came to $1.4 billion in 53 deals compared to $1.3 billion in 65 deals in 2018.

Of the $1.4 billion in VC/PE funding raised in 2019, 75% went to solar downstream companies. Thin-film technology companies raised $126 million; PV companies raised $100 million; balance of system (BOS) companies raised $72 million; solar service providers raised $29 million; concentrated solar power (CSP) companies raised $7 million; and manufacturing companies raised $3 million.

The top solar VC/PE funded companies in 2019 were ReNew Power with $300 million, Hero Future Energies with $150 million, and Avaada Energy with $144 million. There were 116 VC and PE investors that participated in funding deals in 2019.

Public market financing in 2019 came to $2.5 billion compared to $2.3 billion in 2018. There were six Initial Public Offerings in 2019. In 2019, announced debt financing came to $7.8 billion versus $6 billion in 2018. There were eight securitization deals totaling $1.6 billion in 2019.

The top investors to fund large-scale projects in 2019 included Natixis, Banco Sabadell, ING, IFC, and NORD/LB. There were 65 M&A transactions in the solar sector in 2019 compared to 82 in 2018. Most of the transactions involved solar downstream companies. There were 192 large-scale solar project acquisitions for 26 GW in 2019 compared to 218 for 29 GW in 2018.

“Investment firms acquired over 30 GW of large-scale solar projects in the past five years, a reflection of solar’s attractiveness as a long-term, low risk investment,” added Prabhu.

Good news: The deadline for the 2020 Environment + Energy Leader Awards has been extended to January 20! Get details about submitting your entry here.