Total corporate funding in solar sector rises $5.3 billion in H1Staff Writer | July 12, 2018
Mercom Capital Group released its report on funding and merger and acquisition (M&A) activity for the solar sector in the second quarter and first half of 2018.
Energy The first half of 2018 has been a roller-coaster thanks to trade war
A total of 42 VC investors participated in solar funding in 1H 2018
“The first half of 2018 has been a roller-coaster for the solar industry marked by uncertainty due to Trump tariffs followed by the recent Chinese subsidy pullback,” commented Raj Prabhu, CEO of Mercom Capital Group.
Solar public market funding in 1H 2018 was higher compared to the first half of 2017 with $1.25 billion raised
Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector in 1H 2018 was 36 percent lower with $458 million compared to the $716 million raised in the first half of 2017.
There were 117 large-scale project acquisitions in 1H 2018 totaling 11.6 GW
Top VC deals in 1H 2018 included: $112 million raised by Wunder Capital, $100 million raised by Sunnova, $55 million secured by Off-grid Electric, Sunlight Financials’ $50 million, $25 million raised by d.light design, and the $23 million raise by Solaria. A total of 42 VC investors participated in solar funding in 1H 2018.
Solar public market funding in 1H 2018 was higher compared to the first half of 2017 with $1.25 billion raised in 12 deals compared to $934 million in 19 deals in 1H 2017, a 33 percent increase.
Public market financing into the solar sector rose to $1.1 billion in eight deals in Q2 2018 compared to just $103 million in four deals in Q1 2018, and $473 million raised in six deals during Q2 2017.
Announced debt financing activity in the first half of 2018 ($3.6 billion in 32 deals) was 22 percent higher compared to the first half of 2017 when $3 billion was raised in 33 deals.
Most of that increase was due to two securitization deals: Vivint solar raised $466 million through asset back notes and Dividend Finance secured $105 million in a similar deal.
Large-scale project funding in the first half of 2018 saw $7.96 billion announced for 98 projects compared to 1H 2017 when a record $7.4 billion was raised in 81 project funding deals.
Announced residential and commercial solar funds totaled $625 million in 1H 2018 compared to $1.8 billion in the same period of 2017.
In 1H 2018 there were a total of 46 solar M&A transactions, compared to 41 transactions in 1H 2017.
There were 27 solar M&A transactions in Q2 2018. By comparison, there were 19 solar M&A transactions in Q1 2018 and 12 transactions in Q2 2017.
Of the 27 total transactions in Q2, 16 involved solar downstream companies, six involved PV manufacturers, three were equipment manufacturers, and two involved BoS companies.
There were 117 large-scale project acquisitions in 1H 2018 totaling 11.6 GW compared to 101 project acquisitions totaling 10.9 GW in the first half of 2017.
Investment firms and funds were the most active acquirers in 1H 2018, picking up projects totaling 4 GW. ■