Mercom: Total corporate funding in solar sector dropped by 64 percent to $9.1 billion in 2016

The largest transaction in 2016 was the acquisition of Solarcity by Tesla Motors.

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.

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