Debt and VC funding up, Increased M&A activity
AUSTIN, Texas – April 10, 2017 – Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the solar sector in the first quarter of 2017.
Solar Corporate Funding Q1 2016 – Q1 2017
Total corporate funding (including venture capital funding, public market and debt financing) into the solar sector in Q1 2017 doubled with $3.2 billion compared to $1.6 billion in Q4 2016. Year-over-year (YoY) funding in Q1 2017 was about 15 percent higher compared to the $2.8 billion raised in Q1 2016. To learn more about the report, visit: http://bit.ly/
“Q1 funding levels were up in the solar sector from the 2016 lows, largely due to increased debt financing activity. Corporate funding never reached $3 billion in any of the quarters in 2016. M&A activity was also strong with several large deals. Solar public companies also had a good first quarter,” commented Raj Prabhu, CEO of Mercom Capital Group.
Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector saw a 78 percent rise this quarter with $585 million in 22 deals compared to $329 million raised in the same number of deals in Q4 2016. The amount raised was also higher YoY compared to the $406 million raised in 23 deals in Q1 2016.
A large part of the VC funding in Q1 2017 went to solar downstream companies; $548 million was raised in nine deals.
Solar VC Funding Q1 2016 – Q1 2017
Top VC deals included the $200 million raised by ReNew Power Ventures followed by the $155 million raised by Greenko Energy Holdings, the $125 million secured by Hero Future Energies, and then Silicon Ranch’s $55 million. A total of 23 VC investors participated in Q1 2017.
Solar public market financing came to $461 million in 13 deals in Q1 2017, slightly lower compared to the $615 million (also in 13 deals) in Q4 2016, but significantly higher compared to the same quarter of last year when $94 million was raised in four deals. There was one IPO in Q1 2017 by Clenergy compared to two in Q4 2016.
Announced debt financing came in strong with $2.2 billion raised in 25 deals. In comparison, there were 10 deals in Q4 2016 for a total of $610 million. YoY, $2.3 billion was raised in 19 deals in Q1 2016. Most of the debt was raised by solar downstream companies.
In Q1 2017, Solar Mosaic raised $139 million through the first securitization of its residential solar loan portfolio at a 4.45 percent interest rate.
Announced large-scale project funding in Q1 2017 remained steady with $2.6 billion in 33 deals compared to $3 billion in 38 deals in Q4 2016. In a YoY comparison, $1.4 billion was raised in 24 deals in Q1 2016.
Solar Top 5 Announced Large-Scale Projects Funded By Dollar Amount in Q1 2017
Residential and commercial solar funds announced in Q1 2017 dropped to $630 million in six deals compared to $1.5 billion in eight deals in Q4 2016. During the same quarter last year (Q1 2016), $1 billion was raised in six deals. Of the $630 million announced this quarter, $500 million went towards the lease/PPA model and $130 million went to loan funds. A total of more than $23 billion has now gone into residential and commercial funds since 2009.
Solar Top 5 Project Acquisitions by Dollar Amount in Q1 2017
Mercom tracked 233 new large-scale project announcements worldwide in Q1 2017 totaling 12.7 GW. To learn more about the report, visit: http://bit.ly/
Total Corporate Funding in Solar Sector Rises to $3.2 Billion in Q1 2017, Reports Mercom Capital Group posted first on Green Energy Times
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