Global Corporate Funding For Solar In 2021

• Mercom Capital Group counts the global solar corporate funding to have grown 91% annually in 2021 to $27.8 billion
• A total of $7.5 billion came in through public market financing alone with 10 solar companies having opted for IPO and SPAC way last year
• 69 GW large scale project capacity was acquired in 2021, compared to 40 GW in 2020

Global solar sector attracted a total corporate funding of $27.8 billion in 2021, growing 91% annually and emerging as the best year for solar since 2010 with financial activity bouncing back strongly post COVID-19 in 2020, says Mercom Capital Group. In 2020, Mercom counted it as $14.5 billion raised (see Solar Attracted $14.5 Billion Total Corp Funding In 2020).

"2021 was the best year for solar corporate funding as well as mergers and acquisitions since 2010. Financing activity bounced back strongly following a COVID-19-affected 2020," said CEO of Mercom Capital Group, Raj Prabhu. "There was more money than ever chasing deals and more demand than supply of attractive companies and assets as organizations and funds look to fulfill their ESG and clean energy mandates."

In its 2021 Solar Funding and M&A Report, the clean energy market research firm 2021 saw the most project acquisition activity in terms of GW as 69 GW changed ownership, compared to 40 GW in 2020 with 280 large-scale project acquisitions.

The largest merger and acquisition (M&A) activity out of 126 transactions recorded in 2021 was SB Energy India acquisition by Adani Green Energy Limited (AGEL) worth $3.5 billion (see India PV News Snippets).

Global venture capital (VC) and private equity financing went up 281% to $4.5 billion, as the highest VC funding since 2010, with downstream companies raising the highest amount of $3.9 billion. Solar PV companies raised $91 million while concentrated solar power (CSP) attracted $108 million. Thin-film technology companies too were in the fray having raised $18 million.

Public market financing brought in 49% higher proceeds YoY with $7.5 billion, highest of which was raised by US based BOS company Shoals Technologies Group through $2.2 billion initial public offering (IPO) (see Shoals Technologies Grew Annual Revenues In 2020 By 21%).

According to the report, 10 solar companies went the IPO and Special Purpose Acquisition Company (SPAC) way to go public.

Announced debt financing of $15.8 billion improved 91% over 2020 as analysts remark, "Record securitization activity was a key contributor to the rise in debt financing activity during 2021, with $3.7 billion in 13 deals."

Full report can be purchased from Mercom's Capital Group's website.