Global VC solar funding in 2018 fell by 18 percent compared to 2017
Post date: 09/01/2019 - 19:44
Total global corporate funding into the solar sector, including venture capital and private equity (VC), debt financing, and public market financing came to $9.7 billion, a 24 percent drop compared to the $12.8 billion raised in 2017, according to Mercom Capital Group’s »2018 Q3 and annual solar funding and M&A report«.
2018 was a year »filled with uncertainties« which started with US Section 201 tariffs followed by an announcement from China that it was capping installations and reducing its feed-in-tariff, commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. »More bad news came from India which imposed safeguard duties on imports. Uncertainty stemming from the three largest solar markets in the world was reflected in equities of publicly-traded solar companies as well as fundraising activity during the year.«
Global VC funding for the solar sector in 2018 fell 18 percent to $1.3 billion in 65 deals, compared to $1.6 billion raised in 99 deals in 2017, says the report. In 2018, announced debt financing fell 36 percent with $6 billion in 53 deals, compared to $9.5 billion raised in 74 deals during 2017. There were five securitization deals totaling $1.4 billion, slightly higher than the $1.3 billion in 2017.
Large-scale project funding announced in 2018 came to $14 billion in 183 deals, similar to the $14 billion raised in 167 deals during 2017. A total of 182 investors funded about 15 GW of large-scale solar projects in 2018 compared to 20.5 GW funded by 161 investors in 2017.
The solar sector set a record in 2018 for project acquisitions with 29 GW compared to the 20.4 GW in 2017. There were 218 large-scale solar project acquisitions (54 disclosed for $8.4 billion) in 2018 compared to 228 transactions (92 disclosed for $8.3 billion) in 2017.