- Mercom’s report says in Q1/2023, global corporate solar funding amounted to $8.4 billion
- Maximum of $3.9 billion was announced debt financing, followed by $2.3 billion in public market financing and $2.1 billion in VC funding
- Almost 12 GW solar projects changed hands with 27 M&A deals, led by downstream companies
The CEO of Mercom Capital Group, Raj Prabhu sees the Inflation Reduction Act (IRA) as a significant driver for growing investments in solar in global markets along with increasing demand for energy transition, especially in the US and Europe thanks to which in Q1/2023 total corporate solar funding went up 11% YoY to $8.4 billion.
This money was raised in 42 deals, as compared to $7.5 billion raised in 49 deals in Q1/2022, as per the market intelligence firm’s latest 2023 Solar Funding and M&A Report (see Global Solar Corp. Funding Down 7% YoY In Q1/2022).
On quarterly basis too, funding increased 55% from $5.4 billion raised by the sector in Q4/2022, Mercom adds.
It came in as $2.1 billion or 40% QoQ and 75% YoY increase in global venture capital (VC) funding in 18 deals. The deal with largest amount of $375 million was raised by Silicon Ranch (see Finance Pouring In For Solar Power Companies).
Solar downstream companies received $1.4 billion in 10 VC deals, representing 64% of total VC funding.
There was a quarterly jump of 1,183% with $2.3 billion in 7 deals in public market financing from $181 million in 5 deals. However, there was an annual decline of 8% reported for this segment. A total of 4 initial public offerings (IPO) were announced in the reporting quarter with the largest one by Nextracker that raised $638 million (see Nextracker Raises $638 Million With IPO).
Announced debt financing for solar sector was $3.9 billion up 6% QoQ and 3% YoY, according to the report.
Of the 27 merger and acquisition (M&A) transactions reported in Q1, solar downstream companies led with 26 deals. Mercom analysts count almost 12 GW of solar projects acquired during the quarter, down from 14 GW in the previous quarter.
Maximum acquisitions were reported by investment firms and funds that took 4.8 GW, followed by project developers and independent power producers (IPP), electric utilities and oil and gas majors.
Complete report can be purchased from Mercom Capital Group’s website with prices starting from $299.