Total corporate funding in solar sector went up 34 percent with $9 billion in 9M 2019
Post date: 15/10/2019 - 16:21
Consulting company Mercom Capital Group, llc released its report on funding and merger and acquisition (M&A) activity for the solar sector in the third quarter (Q3) and the first nine months (9M) of 2019. Total corporate funding (including venture capital/private equity, public market, and debt financing) in 9M 2019 was up with $9 billion raised, compared to the $6.7 billion raised in 9M 2018, a 34 percent increase year-over-year (YoY). »Corporate funding activity so far this year is ahead of last year’s levels as demand outlook looks positive, and solar public companies continue to do well,« said Raj Prabhu, CEO of Mercom Capital Group.
Corporate funding into the solar sector in Q3 2019 came to $3 billion, compared to $1.3 billion in Q3 2018. In Q3 2019, over $100 million in venture funding went to technology and manufacturing focused companies which is rare. »Five IPOs and over a billion dollars in securitization deals so far this year have been the highlights.«
In 9M 2019 VC/Private Equity funding was 13 percent higher YOY with $1 billion raised in 40 deals compared to the $889 million that went into 49 deals in the first nine months of 2018. According to the consultancy, venture capital funding in 9M 2019 was also the highest recorded over the past four years. Global VC/PE funding in Q3 2019 totaled $208 million in 11 deals.
The top VC deals in 9M 2019 were: the $300 million raised by Renew Power, $144 million raised by Avaada Energy, $65 million secured by Yellow Door Energy, $50 million raised by BBOXX, and $50 million raised by Spruce Finance. A total of 88 VC investors participated in solar funding in 9M 2019.
According to Mercom’s figures, there were a total of 13 project funding deals larger than $100 million in Q3 2019. The top project funding deal in Q3 2019 was Powertis, which received $613 million from BNDES (Banco Nacional de Desenvolvimento Economico e Social) and BNB (Banco do Nordeste), to develop a 765 MW solar PV portfolio in Brazil.
Furthermore, in 9M 2019, there were a total of 57 solar M&A transactions compared to 64 transactions in 9M 2018. The top M&A solar transaction in 9M 2019 was the $255 million acquisition of a 78.5 percent stake in Perseo, operator of photovoltaic generation facilities, by ERG, through its subsidiary ERG Power Generation.
Project acquisition activity was lower in 9M 2019, with 15.9 GW of solar projects acquired, compared to 23.6 GW acquired in the same period last year. In Q3 2019, a total of 34 projects for a combined 4.3 GW were acquired.