Mercom Capital Group, LLC, a global clean energy communications and consulting firm, released its annual report on funding and merger and acquisition (M&A) activity for the solar sector in 2019.
Total corporate funding into the solar sector globally, including venture capital and private equity (VC), debt financing, and public market financing, came to $11.7 billion (B) compared to the $9.7B raised in 2018.
Chart: Solar Corporate Funding 2010-2019
“Financial activity was up across the board in the solar sector in 2019 with venture funding, public market, and debt financing all increasing year-over-year. Solar equities also had a great year with six solar IPOs around the world. These notable metrics, along with robust debt financing activity including securitization deals, rounded off a strong year for the sector,” said Raj Prabhu, CEO of Mercom Capital Group.
Global VC/PE funding in the solar sector in 2019 came to $1.4B in 53 deals compared to $1.3B in 65 deals in 2018.
Chart: Solar VC Funding 2010-2019
Of the $1.4B in VC/PE funding raised in 2019, 75% went to Solar Downstream companies. Thin-film technology companies raised $126 million; PV companies raised $100 million; Balance of System (BOS) companies raised $72 million; Solar Service Providers raised $29 million; Concentrated Solar Power (CSP) companies raised $7 million; and Manufacturing companies raised $3 million.
Chart: Solar VC Funded Companies in 2019
The top solar VC/PE funded companies in 2019 were ReNew Power with $300 million, Hero Future Energies with $150 million, and Avaada Energy with $144 million.
There were 116 VC and PE investors that participated in funding deals in 2019.
Public market financing in 2019 came to $2.5B compared to $2.3B in 2018. There were six Initial Public Offerings in 2019.
In 2019, announced debt financing came to $7.8B versus $6B in 2018. There were eight securitization deals totaling $1.6B in 2019.
The top investors to fund large-scale projects in 2019 included Natixis, Banco Sabadell, ING, IFC, and NORD/LB.
Chart: Solar Top M&A Transactions in 2019
There were 65 M&A transactions in the solar sector in 2019 compared to 82 in 2018. Most of the transactions involved Solar Downstream companies.
Chart: Solar Large-Scale Project Acquisitions 2010-2019
There were 192 large-scale solar project acquisitions for 26 GW in 2019 compared to 218 for 29 GW in 2018.
“Investment firms acquired over 30 GW of large-scale solar projects in the past five years, a reflection of solar’s attractiveness as a long-term, low risk investment,” added Prabhu.
About Mercom Capital Group
Mercom Capital Group is a global communications and consulting firm focused on clean energy. Mercom produces funding and market intelligence reports covering Solar and Battery Storage/Smart Grid/Efficiency. Mercom advises cleantech companies on new market entry, custom market intelligence and overall strategic decision-making. http://mercomcapital.com.
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Contacts:
Mercom Capital Group
Tel: 1.512.215.4452
E-mail: media@mercomcapital.com
