The global corporate funding that solar raised in 9M/2022 was down 18% YoY at $18.7 billion, attributed by Mercom Capital Group mainly to inflation and high interest rates, but things are already getting better with the Inflation Reduction Act (IRA) renewing momentum.
"We have seen a resurgence in VC and private equity funding, breaking funding records since 2010. There is no longer any doubt about the growth potential of the solar industry—it is now a race to acquire the right technology and portfolios to scale," said Mercom Capital CEO Raj Prabhu.
In its 9M and Q3 2022 Solar Funding and M&A Report, venture capital (VC) funding improved 150% to $5.5 billion in 72 deals with Intersect Power raising the largest amount of $750 million (see $750 Million Investment For US Solar Developer).
Announced solar debt financing during the reporting period was $8.3 billion, having gone down 42% from last year's $14.2 billion, while 8 securitization deals of $2.3 billion declined 28%. Since 2013, Mercom counts over $13.4 billion raised through securitization deals.
A total of 90 solar corporate mergers and acquisition (M&A) transactions were completed in 9M/2022, and 207 project acquisitions worth 52 GW been completed. In the previous year, 200 projects representing 55.5 GW changed hands. Project developers and independent power producers (IPP) acquired 10.8 GW in Q3/2022, followed by investment firms with 2.4 GW.
"There is no doubt left in the markets about the growth potential of the solar industry, and it is now a race to acquire the right technology and portfolios to scale," added Prabhu.
Complete report can be purchased from Mercom Capital's website with prices starting from $299.