Since 9M/2014, the current period is the lowest in terms of total solar corporate funding raised, according to Mercom Capital’s Q3 2017 Solar Funding and M&A Report. (Source: Mercom Capital Group)
- Total Corporate Funding for the solar sector in Q3/2017 was $2.4 billion, increasing from $1.4 billion raised in Q2/2017
- During 9M/2017, it attracted $7.1 billion in 143 deals, dropping from $7.5 billion raised a year back
- Venture capital funding routed 70% of the capital to solar downstream companies in Q3/2017 with $193 million in 13 deals
- Public market financing raised only $79 million in Q3/2017, as compared to $473 million raised in six deals in Q2/2017
- Debt financing accounted for $2.1 billion in 18 deals in Q3/2017, increasing from $798 million raised in eight deals in the previous quarter
In the first 9 months of 2017, the global solar sector attracted $7.1 billion in 143 deals of total corporate funding. It is impressive but is still lower than the $7.5 billion raised in 125 deals in 9M/2016. On a quarter to quarter comparison, Q3/2017 performed well – with more than $2.4 billion raised by the sector in total corporate funding, improving hugely from $1.4 billion raised in the previous quarter, according to Mercom Capital’s Q3 2017 Solar Funding and M&A Report.
Mercom includes venture capital (VC), public market and debt financing in total corporate funding. Its Q3 report on the subject shows global VC funding during 9M/2017 was $985 million, increasing from $925 million raised a year back. During Q3/2017, it more than doubled with $269 million raised in 23 deals as compared to $128 million raised in the same number of deals in Q2/2017.
VC investors made their preference for solar downstream technology very clear as it scored more than 70% of the total in the third quarter with $193 million raised in 13 deals. CleanMax Solar of India clinched the highest VC deal of $100 million in the quarter (see US Private Equity Firm Invests In CleanMax Solar).
Dropping from $1.2 billion raised in the first 9 months of 2016, public market financing in the current year was $1 billion. On a QoQ basis, only $79 million was raised in four deals, vis-à-vis $473 million raised in six deals in Q2/2017.
Reported debt financing was almost 6% less than in the first 9 months of 2017 compared to $5.4 billion raised in 55 deals a year back. It rose steeply in Q3/2017 to $2.1 billion in 18 deals, which is a big improvement from $798 million raised in eight deals in the previous quarter. “Debt financing activity outside of the United States helped bump up corporate funding in the third quarter as financing activity in the United States was muted ahead of the Suniva anti-dumping case decision,” commented Raj Prabhu, CEO of Mercom Capital Group.
Large scale project funding in Q3/2017 was $2.8 billion dropping 40% from $4.8 billion raised in Q2/2017.
Overall, 58 solar M&A transactions were reported in the first nine months of 2017, as compared to 48 transactions a year back. The third quarter contributed 18 such transactions.
New large scale project construction announcements globally were 15.7 GW across 296 projects in Q3/2017.
The Q3 2017 Solar Funding and M&A Report can be purchased at Mercom Capital Group’s website for $499.