Corporate funding in the solar sector went up 11 percent in 1H 2019, Mercom
Post date: 09/07/2019 - 17:24
Total corporate funding (including venture capital funding, public market, and debt financing) in the first half (1H) of 2019 was up with $6 billion raised compared to the $5.4 billion raised in 1H 2018, an 11 percent increase year-over-year (YoY). According to consulting firm Mercom Capital Group’s report on funding and merger and acquisition (M&A) activity for the solar sector in the second quarter and the first half of 2019, corporate funding increased in Q2 2019 with $3.3 billion in 29 deals compared to the $2.7 billion in 35 deals in Q1 2019 (Q1 2018: $2.5 billion). Year-over-year funding in Q2 2019 was about 12 percent higher compared to the $2.9 billion in Q2 2018.
In 1H 2019, Global VC funding (venture capital, private equity, and corporate venture capital) in the solar sector was 50 percent higher with $799 million compared to $531 million raised in the first half of 2018, says Mercom. In Q2 2019, Global VC funding increased to $622 million in 16 deals compared to $370 million raised in 15 deals in Q2 2018, almost 68 percent higher YoY.
Top deals in 1H 2019 included: $300 million raised by Renew Power, $144 million raised by Avaada Energy, $65 million secured by Yellow Door Energy, $50 million raised by Spruce Finance, $41 million raised by Oxford Photovoltaics, $39 million raised by CleanMax Solar, and the $31 million raised by BBOXX. A total of 62 VC investors participated in solar funding in 1H 2019.
Announced large-scale project funding in the first half of 2019 saw $9 billion announced for 76 projects compared to 1H 2018 when $8 billion went into 98 project funding deals. Announced residential and commercial solar funds totaled $327 million in 1H 2019.
Solar public market financing in 1H 2019 was 20 percent lower compared to the first half of 2018 with $993 million in eight deals compared to $1.2 billion in 12 deals in 1H 2018. Public market financing in the solar sector rose to $746 million in five deals in Q2 2019 compared to $247 million in three deals in Q1 2019, and $1.14 billion in eight deals during Q2 2018.
According to the figures, in 1H 2019 there were a total of 37 solar M&A transactions compared to 46 transactions in 1H 2018. There were six disclosed M&A transactions in 1H 2019. By comparison, there were 14 disclosed M&A transactions in 1H 2018. The top deal in 1H 2019 was ERG, through its subsidiary ERG Power Generation, which acquired a 78.5 percent stake in Perseo, operator of photovoltaic generation facilities, for $255 million.
There were 19 solar M&A transactions in Q2 2019. By comparison, there were 18 solar M&A transactions in Q1 2019 and 27 transactions in Q2 2018. Of the 19 transactions in Q2 2019, 12 involved solar downstream companies, four involved equipment manufacturers, two solar PV manufacturers, and one deal involved a solar service provider, says Mercom’s »Q2 & 1H 2019 global funding and M&A report for the Global Solar Sector«.