Total Corporate Funding in Global Solar Sector Comes to $7.1 Billion in First Nine Months of 2017, Reports Mercom Capital Group

 Mercom Capital Group,released its report on funding and merger and acquisition (M&A) activity for the solar sector in the third quarter (Q3) of 2017 and the first nine months (9M) of 2017.

According to the report total corporate funding (including venture capital funding, public market and debt financing) in 9M 2017 was lower with $7.1 billion (B) raised versus 9M 2016's $7.5B. There were 143 deals in 9M 2017 versus 125 in 9M 2016.

Chart: Solar Corporate Funding Q32016-Q32017

Corporate funding in solar in Q3 2017 grew 74 percent to $2.4B in 45 deals over Q2 2017's $1.4B in 37 deals. Year-over-year (YoY) funding fell 19 percent versus $3B in Q3 2016.

"Debt financing activity outside of the U.S. helped bump up corporate funding in Q3 as financing activity in the U.S. was muted ahead of the Suniva anti-dumping case decision," commented Raj Prabhu, CEO of Mercom Capital Group.

Global VC funding (venture capital, private equity, and corporate venture capital) rose seven percent in 9M 2017 to $985 million (M) from $925M in 9M 2016.

Chart: Solar VC Funding 9M2013-2017

In Q3 2017, solar VC funding doubled to $269M in 23 deals versus $128M in 23 deals in Q2 2017. 72 percent went to solar downstream companies ($193M in 13 deals) in Q3 2017.

Q3 2017 Top VC deals: $100M for CleanMax Solar; $56M by Sunseap Group; $21M by Sol Voltaics; Ampt's $15M; and Ubiquitous Energy's $15M. 35 investors participated in solar funding in Q3 2017.

Solar public market funding fell 12 percent to $1B in 9M2017 versus 9M 2016's $1.2B.

In 9M 2017, debt financing was $5.1B in 51 deals versus 9M 2016's $5.4B in 55 deals said the report. The report also stated that in Q3 2017 top debt deals: Greenko Energy Holdings's $1B in green bonds; Cypress Creek Renewables got $450M from Temasek.

9M 2017 announced large-scale project funding saw $10.2B raised for 117 projects. In Q32017, $2.8 B went to 36 projects.

Chart: Solar Top 5 Announced Large-Scale Projects Funded Q32017

Announced residential and commercial solar funds totaled $2.2B in 9M 2017.

9M 2017 had 58 M&A transactions versus 48 transactions in 9M 2016. There were 18 solar M&A transactions in Q3 2017 versus 11 in Q2 2017.

161 large-scale project acquisitions in 9M 2017 totaled 14.6 GW versus 145 totaling 7.1 GW in 9M 2016.

Chart: Solar Top 5 Project Acquisitions in Q32017

Mercom tracked 296 new large-scale project announcements in Q3 2017 totaling 15.7 GW.