Indian PV Received $10bn In Financing In 2017

Indian Solar Sector Accounted For Over 50% Of Global Venture Capital And Private Equity Investment Last Year According To Mercom Report
07:13 AM (Beijing Time) - 11. March 2018
n_mar_Asia_India_Over $10 Billion Financing For Indian PV In 2017_ab 2018

Corporate solar funding in 2017 came in at $12.8 billion according to Mercom’s estimates. The Indian solar sector accounted for 28.3% of that, with $3.6 billion raised during the year. Regarding VC and private equity, Indian solar companies had raised over $800 million equal to a 50% global share. (Source: Mercom Capital)

Key Takeaways

  • More than $10 billion in financing activity took place in India in 2017; a major improvement compared to $4 billion in 2016, according to Mercom Capital
  • Corporate funding, led by private equity deals, accounted for 28.3% of the global total
  • Venture capital and private equity investments in the country made up 50.3% of the total reported in 2017
  • Going forward, Mercom expects investments in India’s solar sector to slow down along with the pace of installations, owing to uncertainties created by trade cases

India recorded more than $10 billion in financing activity for the solar sector, increasing hugely compared to $4 billion in 2016. Mercom Capital Group’s 2017 Q4 and Annual India Solar Market Update report on the sector says corporate funding for the Indian solar sector during the year made up 28.3% of the global total.

Mercom had earlier reported that global corporate funding in 2017 increased 41% compared to 2016 (see Solar Raised $12.8bn Global Corp Funding In 2017).

Corporate funding includes venture capital, private equity, public market and debt financing. In the reporting year Indian companies raised a total of $3.6 billion. Large private equity deals, the biggest of which was ReNew Power’s $200 million in 2 deals, pushed up corporate funding during the past year. Deals were signed by CleanMax Solar (see US Private Equity Firm Invests In CleanMax Solar), Greenko Energy (see Greenko Raises $155 Million), and Hero Future Energies.

Indian companies raised more than $800 million in venture capital and private equity investments, accounting for 50.3% of the global total. In debt financing, Mercom reported year-on-year (YoY) growth, mainly through bonds. The largest debt financing deals were from Greenko Energy, which issued senior notes and bonds worth $1.5 billion; Azure Power, which raised over $500 million by issuing a bond; and ReNew Power, which received $500 million by issuing bonds.

According to the Mercom report, there were no corporate merger and acquisition (M&A) deals in the sector. Project acquisition activity also dropped by half during the period. The largest such deal was the acquisition of the 330 MW solar portfolio of Hindustan Power Projects by Macquarie Group.

Mercom CEO Raj Prabhu expects investments in the solar sector to slow down along with the pace of installations in 2018, owing to market conditions. “Uncertainties created by trade cases with possible safeguard and anti-dumping duty imposition will have a direct negative impact on investments unless the government acts fast to resolve these issues in a way that creates confidence among the investment community,” said Prabhu.

Mercom’s 2017 Q4 and Annual India Solar Market Update report costs $999.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani