Global solar sector sees strong growth in corp funding in 9-mo 2021

Solar panels. Author: John S. Quarterman. License: Creative Commons, Attribution 2.0 Generic.

October 15 (Renewables Now) - Total solar power corporate funding around the world, including venture capital (VC), public market and debt financing deals, surged by 190% year-on-year to USD 22.8 billion (EUR 19.7bn) in the first nine months of 2021, Mercom Capital Group reported on Thursday.

The consultancy's report showed that global VC funding soared 466% to USD 2.2 billion across 39 deals in the nine months to September, up from USD 394 million in 29 deals in the corresponding period of 2020.

The top five VC funded companies were US solar loan provider Loanpal, which became GoodLeap, US solar industry software developer Aurora Solar, US solar energy company Nexamp, US infrastructure company Intersect Power and India's Fourth Partner Energy.

Meanwhile, public market financing in the solar sector jumped by 209% to USD 6.3 billion thanks to 23 deals, including seven initial public offerings (IPOs), in January-September 2021, against USD 2 billion from ten deals in the same period of 2020.

The merger and acquisition (M&A) activity included 83 solar corporate M&A transactions in the first nine months of 2021, against 42 in the corresponding period last year. Solar project acquisitions represented 55.5 GW in the period, compared to 24.3 GW in 2020.

"Investment activity continues to be robust across the solar sector and not just compared to 2020 (because of COVID). This will end up as one of the best years for solar financing since 2010," Raj Prabhu, CEO of Mercom, commented.

Mercom’s latest report covers a total of 339 companies and investors.

(USD 1.0 = EUR 0.863)

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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