Mercom: Total corporate funding in solar sector dropped by 64 percent to $9.1 billion in 2016
Post date: 10/01/2017 - 21:16
According to US consultancy Mercom Capital Group’s report on funding and merger and acquisition (M&A) activity for the solar sector in 2016, total global corporate funding in the solar sector raised by public companies came to $9.1 billion, compared to $25.3 billion in 2015, a 64 percent drop.
Global Venture Capital (VC) investments came to $1.25 billion in 77 deals in 2016 (2015: $1.1 billion). Solar downstream companies accounted for 80 percent of the VC funding in 2016. According to the findings, the largest deals in 2016 was the $300 million raised by Sunnova Energy, followed by the $220 million raised by Solar Mosaic. Origis Energy and Silicon Ranch each raised $100 million. Furthermore, Mercom reports three IPOs which brought in $230 million (BCPG Bangchak Petroleum, Azure Power, Ripasso Energy). The top investors for large-scale project funding worth $9.4 billion were Santander, followed by Bpifrance, Natixis and NORD/LB.
There was a total of $4.9 billion raised in 30 residential and commercial solar project funds in 2016 (2015: $5.7 billion). Solarcity, Sunrun, Solar Mosaic, Spruce Finance, and Tabuchi Electric were the top fundraisers. Furthermore, the consultancy counted 68 corporate M&A transactions in the solar sector in 2016 (2015: 81 transactions). BayWa r.e., DNV GL, Golden Concord Holdings, and Voltalia acquired two companies each. The largest transaction was the $2.1 billion acquisition of Solarcity by Tesla Motors.
Mercom also tracked 133 large-scale project announcements worldwide totaling 5.8 GW and 826 project announcements totaling 40.4 GW for all of 2016.