By July 8, 2016 Read More →

Corporate funding in solar sector down 41% from Q1 – Mercom Capital

More than 2 GW of solar projects were acquired in Q2 compared to 2.4 GW in Q1

corporate fundingAUSTIN, Texas – Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition activity for the solar sector in the second quarter of 2016.

Total corporate funding, including venture capital and private equity funding, public market and debt financing into the solar sector in Q2 2016 fell to $1.7 billion, a 41 per cent drop compared to the $2.8 billion raised in Q1 2016.

Year-over-year total corporate funding was down significantly compared to $5.9 billion in the second quarter of last year.

“The solar industry continues to experience weakness in terms of financing activity and corporate funding in Q2 2016 was at its lowest level in three years,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

Global VC funding (including private equity) dropped to $174 million in 16 deals compared to $406 million in 23 deals in Q1 2016.

corporate fundingSolar downstream companies raised 64 per cent of VC funding in Q2 2016 with $112 million in seven deals.

Other VC deals included the $20 million raised by Tigo Energy, 1366 Technologies’ $15 million raise, and the $12.5 million raised by Sol Voltaics.

Public market financing in Q2 2016 came to $179 million in four deals compared to $94 million in four deals in Q1 2016.

Announced debt financing came to $1.3 billion in 12 deals in Q2 2016.

It was a good quarter for residential and commercial solar funds led by SolarCity, Mosaic, and Sunnova Energy with $1.36 billion in 11 deals in Q2 2016, compared to the $1 billion raised in six deals in Q1 2016.

In Q2 2016, $800 million went towards the lease model and $555 million went to loan funds.

Since 2009, almost $20 billion has gone into residential/commercial solar funds.

The top large-scale project financing deals each brought in over $100 million.

There were 17 solar M&A transactions in the second quarter of 2016, eight of which involved solar downstream companies.

Sungevity announced a merger with Easterly Acquisition Corp, a blank check company traded on Nasdaq in a deal valued at $357 million.

More than 2 GW of solar projects were acquired in the second quarter compared to the 2.4 GW in the previous quarter.

Mercom also tracked 196 new large-scale project announcements worldwide in Q2 2016 totaling 11.3 GW.

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