Corporate Funding For Solar In 9M/2021

Mercom: During 9M/2021, Solar Raised $22.8 Billion Global Funding

Corporate Funding For Solar In 9M/2021

The $22.8 billion global corporate funding for solar in 9M/2021 is the largest amount raised during this period since 9M/2017, according to Mercom analysts. (Source: Mercom Capital Group)

  • 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.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.

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