Solar funding grows 10% to $2.8 bn in first quarter

By Editor


Corporate funding including venture capital funding, public market, and debt financing into the solar sector rose 10 percent to $2.8 billion in Q1 2019, Mercom Capital Group, a clean energy communications and consulting firm, said.

“The market is upbeat, and solar equities rebounded strongly in the first quarter. However, China is still a wild card, and depending on its 2019 policy direction, it could have a significant impact on the solar industry,” said Raj Prabhu, CEO of Mercom Capital Group.

Global VC funding for the solar sector in Q1 2019 increased marginally to $176 million in 13 deals, compared to $161 million raised in 22 deals in Q1 2018.

The majority of VC funding raised in Q1 2019 went to solar downstream companies with $111 million in seven deals.

The top VC deals in the first quarter of 2019 were: $65 million raised by Yellow Door Energy, $41 million raised by Oxford PV, $37 million secured by BBOXX in two funding deals, $20 million raised by Aurora Solar, and PEG Africa’s $5 million deal. 28 VC investors participated in solar funding in Q1 2019.

VC funding in solar companies Q1 2019Solar public market financing increased to $247 million in three deals in Q1 2019, compared to $103 million raised in four deals in Q1 2018. Ginlong (Solis) Technologies had a rare solar IPO in Q1 2019.

Announced debt financings have grown marginally to $2.35 billion in 19 deals during Q1 2019 compared to $2.3 billion in 18 deals in Q1 2018. Most of the debt raised in Q1 2018 was by solar downstream companies. There were three securitization deals in Q1 2019.

Large-scale project funding in Q1 2019 touched $5.68 billion in 43 deals compared to $2.8 billion in 47 deals during Q4 2018 and $2.7 billion in 57 deals in Q1 2018.

There were two residential and commercial solar funds announced in Q1 2019 for $207 million against $400 million raised in one deal in Q1 2018. There was no deal in Q4 2018.

There were 18 solar transactions in Q1 2019 compared to 19 transactions in Q1 2018. Of the total 18 transactions, 14 involved Solar Downstream companies. There were two transactions apiece involving Equipment Manufacturers and Balance of System (BoS) companies.

Investment firms drove the acquisition of about 5.9 GW of solar projects in Q1 2019 compared to 4.8 GW in Q4 2018 and 7.7 GW in Q1 2018.

18 investment firms and funds acquired 20 projects in Q1 2019, totaling 3.5 GW, while 14 Utilities and IPPs picked up 19 projects totaling 1.15 GW. 13 project developers acquired 14 projects for 803 MW during the quarter.

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