Saturday, July 31, 2021

Corporate funding to solar sector grew 24% globally in 2020: Mercom Capital

In 2020, introduced debt financing got here to $8.3 billion, a 6.4% enhance 12 months on 12 months.

Company funding to the photo voltaic sector globally, together with enterprise capital (VC) personal fairness (PE) debt financing, and public market financing, totalled $14.5 billion in 2020 — a 24% enhance in comparison with $11.7 billion in 2019, a Mercom Capital Group report mentioned.

The clear power communication and consulting agency mentioned in its annual report that through the first half of the fiscal, company funding was down 25% year-on- 12 months, however restoration has been swift and broad, with company funding up 24% for the 12 months.

Publicly traded photo voltaic firms had an unprecedented 12 months with photo voltaic ETF up 225% and 15 photo voltaic shares up over 100% within the calendar 12 months. Public market funding was additionally up with the assistance of a number of IPOs, and debt financing was up on the again of securitisation offers. Photo voltaic asset acquisitions had been at an all-time excessive changing into much more sought-after within the pandemic 12 months, Raj Prabhu, CEO of Mercom Capital Group, mentioned.

World enterprise capital and personal fairness funding within the photo voltaic sector in 2020 got here to $1.2 billion by way of 41 offers, in comparison with $1.4 billion by way of 53 offers in 2019. Of the $1.2 billion in VC/PE funding raised, $1.1 billion went to 27 photo voltaic downstream firms, which accounted for 90% of whole VC funding in 2020. Photo voltaic service suppliers raised $61 million; PV firms raised $17 million; Steadiness of System (BOS) firms introduced in $15 million; thin-film know-how firms raised $15 million, and concentrator photovoltaics (CPV) firms raised $5.5 million.

The highest VC-funded firms in 2020 had been Ayana Renewable Energy elevating $390 million, Silicon Ranch Company bringing in $225 million, Brighte elevating $76 million, Sunseap Group elevating $72 million and Aurora Photo voltaic and Zero Mass Water, every elevating $50 million. There have been 102 VC and PE traders that participated in funding offers in 2020, with 5 concerned in a number of rounds. Public market financing was up 101%, with $5.1 billion in 2020. Array Applied sciences raised $1.2 billion in its preliminary public providing within the fourth quarter of 2020.

In 2020, introduced debt financing got here to $8.3 billion, a 6.4% enhance 12 months on 12 months. Eight securitisation offers totalling $2.2 billion had been recorded in 2020, the most important quantity of financing by way of securitisation in a 12 months. High traders in large-scale initiatives through the fourth quarter of the calendar 12 months had been Societe Generale, which invested in 5 initiatives, Sumitomo Mitsui Banking Company, which invested in 4 initiatives, Credit score Agricole, European Financial institution for Reconstruction and Growth (EBRD), and Inter-American Funding Company (IDB Make investments), every investing in three initiatives.

Sixty-two merger and acquisition offers had been transacted within the photo voltaic sector in 2020 in comparison with 65 in 2019. A lot of the transactions concerned photo voltaic downstream firms. The biggest transaction in 2020 was Sunrun’s acquisition of Vivint Photo voltaic, in an all-stock transaction for $3.2 billion.

There have been 231 large-scale photo voltaic challenge acquisitions in 2020 in comparison with 192 transactions in 2019. A file 39.5 GW of large-scale photo voltaic initiatives modified palms in 2020 in comparison with 26.1 GW in 2019. This was the most important quantity of initiatives acquired in a single 12 months so far.

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