Total corporate funding in the solar sector increased by 193 percent to $13.5 billion in H1 2021
Post date: 15/07/2021 - 10:47
Total corporate funding (including venture capital (VC) funding, public market, and debt financing) in the solar business in the first half of 2021 came to $13.5 billion compared to $4.6 billion in H1 of 2020, a 193 percent year-over-year (YoY) increase. VC funding was 680 percent higher, with $1.6 billion raised in 26 deals compared to $210 million in 14 deals H1 2020. The increase in VC funding activity resulted from some large transactions, including Loanpal's $800 million deal in the first quarter of 2021, according to the report on funding and merger and acquisition (M&A) activity for the solar sector in the second quarter (Q2) and the first half (H1) of 2021 released by Mercom Capital Group. »Corporate M&A activity was up significantly with solar developers expanding their pipelines, oil and gas companies diversifying into renewables, and funds buying up renewable assets. Solar project acquisitions reached a record high in Q2,« said Raj Prabhu, CEO of Mercom Capital Group. »The transition from fossil fuels to renewables and environmental, social and governance investing trends made an impact on financing as well as M&A activity.« In H1 2021 there were 54 solar corporate M&A transactions compared to 25 in the same period of last year.
Solar public market financing was 386 percent higher, with $3.7 billion raised in 13 deals compared to $758 million raised in six deals in H1 2020. »Shoals Technologies Group's $2.2 billion IPO was a big part of the increase in public market financing activity in the first half of this year.«
Announced debt financing activity ($8.2 billion in 32 deals) was 125 percent higher compared to the first half of 2020, when $3.7 billion went into 17 deals. Spurred by low interest rates, a record $2 billion was raised through seven securitization deals, says the consultancy.
Solar project acquisitions reached 39.3 GW compared to 14.7 GW in H1 2020. Project acquisition activity was at a record high in Q2 2021, with over 24 GW of solar projects acquired compared to 14.6 GW in Q1 2021.