Global Q2 corporate solar funding off 41% - Mercom Capital

Total corporate funding into the global solar sector, including venture capital funding and public market and debt financing, declined 41% compared to $2.8bn raised in the first quarter, according to Mercom Capital Group.

The clean tech communications and research firm says 32 deals occurred in the second quarter, down from 45 in the previous period.

Second quarter activity was also sluggish compared with 2015 when $5.9bn in deals were done in the second quarter, $6.2bn in the third quarter and $6.9bn in the fourth quarter.

The data was part of Mercom’s Q2 2016 Solar Funding and M&A Report.

 Second quarter global venture capital funding for solar totaled $174m in 16 deals versus and $142m in 24 deals a year earlier and $406m in 23 deals in the first quarter.

Among top VC funded companies in the second quarter, Silicon Ranch led the list by raising $100m from Partners Group, followed by Tigo Energy ($20m) from SMA Solar Technology.

By technology, VC solar funding was led by solar downstream ($112m in 7 deals); PV ($25m in 3 deals); BOS ($23m in 4 deals); thin film ($13m in 1 deal) and service providers ($1m in 1 deal).

Other second quarter activity included debt financing ($1.3bn in 12 deals vs $3.4bn in 14 deals a year earlier) and public market financing ($179m in 4 deals versus $2.3bn in 12 deals a year earlier).

Second quarter residential/commercial solar project funding (third party financing/lease/loan) totaled $1.36bn in 11 deals versus $1.9bn in 5 deals a year earlier, according to Mercom.

Investors acquired 2.067GW in large-scale solar projects in 38 transactions, down from 3.499GW in 66 transactions a year earlier.

The largest second quarter acquisition was Tata Power Renewable Energy’s $1.4bn deal for a 1.14GW project pipeline of Welspun Renewables Energy.