- Mercom’s latest report claims $22.8 billion was raised as total corporate funding for solar in 9M/2021
- Project acquisition activity had 55.5 GW exchanging hands, with 15.8 GW within Q3/2021
- VC funding in 9M/2021 increased 466% while public market financing saw 209% upward movement
Mercom Capital Group calculates $22.8 billion total corporate funding for solar during 9M/2021 through 112 deals, increasing 190% over previous year, with 72% annual increase in Q3/2021 funding amount of $9.3 billion in 41 deals. The $22.8 billion is also the largest amount raised during this period since 9M/2017 (see $7.9 Billion Total Corporate Funding For Solar In 9M/2020).
Corporate funding includes venture capital funding, public market and debt financing, explains Mercom Capital Group that has made these estimates in its 9M and Q3 2021 Solar Funding and M&A Report that covers 339 companies and investors.
CEO Raj Prabhu sees 2021 ending as one of the best years for solar financing since 2010 while pointing at large-scale solar project acquisitions during 9M/2021 that increased 129% in a year’s time. It added up to a total of 55.5 GW capacity exchanging hands, with 15.8 GW within Q3/2021. Most of these projects were acquired by solar project developers.
Global venture capital (VC) funding during 9M/2021 was $2.2 billion, having gone up 466% with Q3/2021 adding $593 million after increasing 224% YoY. The topmost deal turned out to be $800 million raised by Loanpal in the US (see US Residential Solar Financier Raises Over $800 Million).
There was an annual jump of 209% in public market financing for 9M/2021 with $6.3 billion raised in 23 deals, and Q3/2021 contributing 106% more than previous year with $2.7 billion. Mercom points out there were 7 initial public offerings (IPO) launched during the period and special purpose acquisition company (SPAC) announced between January 2021 and June 2021 that raised $4.4 billion for the industry.
Announced debt financing of $6 billion in Q3/2021 was 242% more than same period last year and most of this increase was due to record securitization activity in 9M/2021.
Out of 83 solar merger and acquisition (M&A) transactions in the 1st 9 months of 2021, 29 took place in Q3/2021 with the largest being Adani Green Energy Limited (AGEL) acquiring 100% stake in SB Energy India for $3.5 billion (see India PV News Snippets).
Prabu opined, “As the push toward the energy transition picks up speed worldwide, solar – one of the mature renewable energy resources—is benefitting enormously.”
The report can be purchased from Mercom’s website with prices starting from $299.
