Global corporate funding in the solar sector comes to $2.8 billion in Q1 2019, Mercom
Post date: 10/04/2019 - 18:39
Total corporate funding (including venture capital, public market, and debt financing) into the solar sector in Q1 2019 came to $2.8 billion. Year-over-Year funding in Q1 2019 was about 10 percent higher compared to the $2.5 billion raised in Q1 2018, according to consulting firm Mercom Capital Group’s report on funding and merger and acquisition (M&A) activity for the global solar sector in the first quarter of 2019.
»Funding levels were up slightly year-over-year in Q1 2019, but the solar industry was on a much stronger footing at the beginning of this year compared to a year earlier, when the industry was hit with tariffs, subsidy and installation cuts in China, and a module oversupply situation,« said Raj Prabhu, CEO of Mercom Capital Group. »The market is upbeat, and solar equities rebounded strongly in the first quarter.« However, China »is still a wild card, and depending on its 2019 policy direction, it could have a significant impact on the solar industry.«
Global VC funding for the solar sector in Q1 2019 totaled $176 million in 13 deals, compared to $161 million in 22 deals in Q1 2018. The majority of VC funding raised in Q1 2019 went to solar downstream companies with $111 million in seven deals. The top VC deals in the first quarter of 2019 were: $65 million raised by Yellow Door Energy, $41 million by Oxford PV, $37 million secured by BBOXX, $20 million by Aurora Solar, and PEG Africa’s $5 million deal. A total of 28 VC investors participated in solar funding in Q1 2019.
Announced large-scale project funding in Q1 2019 reached a high with $5.68 billion in 43 deals versus $2.7 billion in 57 deals in Q1 2018. M&A activity was steady with 18 solar transactions in Q1 2019 compared to 19 transactions in Q1 2018. Of the total 18 transactions, 14 involved solar downstream companies. About 5.9 GW of solar projects were acquired in Q1 2019, says Mercom.