Total corporate funding (including venture capital funding, public market and debt financing) for the solar sector amounted to $6.7 billion in the first nine months of 2018, slightly lower than the $7.1 billion raised during the same period in 2017, according to a report released by Mercom Capital Group.
The report released by the global clean energy communications and consulting firm focuses on funding, merger and acquisition (M&A) activity for the global solar sector in the third quarter of 2018 and the first nine months of 2018.
The analysis identified, that in 2018 there were 103 deals in nine months compared to 143 deals in the same time period in 2017.
“Decline in solar demand around the globe has had a strong effect on corporate financing activity in solar especially with most solar company stocks in negative territory at the end of the third quarter. M&A activity, on the other hand, has remained robust, especially project acquisitions,” said Raj Prabhu, CEO of Mercom Capital Group.
The Texas-based firm highlighted that global VC funding (venture capital, private equity, and corporate venture capital) for the recorded nine months in 2018 totalled $889 million, a 10% decrease compared to the $985 million raised in 2017.
VC funding for the solar sector held steady in Q3 2018 with $359 million raised in 12 deals compared to the $370 million raised in 15 deals in Q2 2018.
Additionally, the report summary highlights that the solar public market funding was higher in 9M 2018 with $1.8 billion raised in 14 deals compared to $1 billion raised in 23 deals in 9M 2017.
Debt financing activity in the first nine months of 2018 declined by almost 21% to $4 billion in 40 deals compared to 9M 2017 when $5.1 billion was raised in 51 deals.
Announced large-scale project funding in 9M 2018 crossed $11 billion for the development of 137 projects. For the third quarter of 2018 alone, announced large-scale project funding came in at more than $3 billion in 39 deals.
There were 166 large-scale project acquisitions in 9M 2018 aggregating over 23.6 GW, compared to 161 project acquisitions totalling 14.6 GW during 9M 2017.
Project developers were the most active acquirers in Q3 2018, purchasing 22 projects totalling 8.5 GW, followed by investment firms with 21 projects totalling 2.86 GW.
Find out more information on the Q3 2018 Solar Funding and M&A Report here.