Funding picks up in solar business despite Covid-19

By Editor


Corporate funding in the solar business increased 8 percent in Q3 2020 to $3.2 billion, says research report from Mercom Capital Group.

Corporate funding includes venture capital, private equity, public market, and debt financing.

Corporate funding dropped 13 percent in the first nine months of 2020 to $7.9 billion, the report said.

“Transactions in the works that could not make progress in Q1 and Q2 were getting closed in Q3, resulting in a funding surge. Project acquisition activity – an important indicator of the financial health in the solar sector, bounced back strongly in Q3,” said Raj Prabhu, CEO of Mercom Capital Group.

Global venture capital funding (venture capital, private equity, and corporate venture capital) fell 12 percent in Q3 2020 with $183 million in 15 deals compared to $208 million raised in 11 deals in Q3 2019.

VC funding in the solar business was 61 percent lower with $394 million in nine months as compared to $1 billion raised in 9M 2019.

The top VC deals in 9M 2020 were: $72 million raised by Sunseap Group, $50 million raised by Zero Mass Water, $40 million raised by Ecoppia, $37 million raised by Sunseap Group in a separate deal, and $35 million raised by Lumos.

Public market financing into the solar sector rose 2 percent came to $1.3 billion in four deals in Q3 2020, 75 percent higher compared to $737 million raised in five deals in Q2 2020.

In Q3 2020, announced debt financing came to $1.8 billion in 16 deals, a 20 percent increase compared to $1.5 billion from nine deals in Q2 2020.

Solar debt financing activity in 9M 2020 was 6 percent lower, with $5.4 billion in 32 deals compared to 9M 2019.

Six solar securitization deals brought in almost $1.6 billion in 9M 2020.

There were three residential and commercial solar funds announced in Q3 2020 that totaled $400 million.

Project acquisition activity rose 52 percent in 9M 2020, with 24.3 GW of solar projects acquired, compared to 16 GW acquired in the same period last year. 9.5 GW of solar projects were acquired in Q3 2020, 244 percent higher compared to 2.8 GW in Q2 2020.

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