Record $1.93 Billion Raised by Residential and
Commercial Solar Funds
learn more about the report, visit: http://bit.ly/MercomSolarQ22015
Capital Group, llc, a global clean energy communications and consulting firm,
released its report on funding and merger and acquisition (M&A) activity
for the solar sector in the second quarter of 2015.
global corporate funding in the solar sector, including venture capital/private
equity (VC), debt financing, and public market financing raised by public
companies, decreased to $5.9 billion, compared to $6.4 billion in Q1 2015.
Prabhu, CEO of Mercom Capital Group, commented, “Overall corporate funding was
down slightly this quarter. Yieldcos had a significant impact on the financial
activity in the sector and raised $1.6 billion in public markets, about $800
million in debt, and accounted for almost a third of all large-scale project acquisitions.
Residential and commercial solar funds
continue to attract record funding as the ITC expiration deadline approaches.”
funding dipped to $142 million in 24 deals, compared to $195 million in 27
deals in Q1 2015. Solar downstream companies continued to attract most of the
VC funding with $60 million in 13 deals.
the Top 5 VC deals in Q2 2015, the largest was the $40
million raised by Applied Solar Technologies, an off-grid solar energy service
provider based in India, from Future Fund, Bessemer Venture Partners, Capricorn
Investment Group and International Finance Corporation. Solexel, a manufacturer
of crystalline-silicon solar cells and modules, raised $29.5 million. Solantro
Semiconductor, a developer of chipsets and reference designs for module
integrated electronics within distributed solar PV solutions, raised $11
million from Black Coral Capital, Business
Development Bank of Canada, Presidio Ventures, Clean Energy Venture Group,
Export Development Canada and Inerjys Ventures. Flisom, a Swiss developer of
manufacturing technologies for the production of flexible solar modules based
on CIGS thin-film technology, raised $10.7 million from the Tata Group. Persimmon
Technologies, a technology company that develops, manufactures and distributes robotics
and automation systems used in semiconductor, solar, LED, and flat panel
display equipment, raised $8.9 million.
A total of 28 VCs
invested in Q2 2015, with Clean Energy Venture Group participating in two deals.
financing was a record $2.3 billion this quarter compared to $1.3 billion in Q1
2015. The largest deals this quarter (excluding IPOs) were the $670 million raised by
Abengoa Yield through private placement of shares, $408 million raised by Risen
Energy, a Chinese solar PV manufacturer, and the $335 million raised by
SunEdison, through its TerraForm Global Yieldco. There was one IPO this quarter:
8point3 Energy Partners, a yieldco company formed by First Solar and SunPower
to own, operate and acquire solar energy generation projects, raised $420
million and listed on NASDAQ Global Select Market.
Debt financing fell this quarter to $3.4 billion,
compared to $5 billion in Q1 2015. The top deal was the $1.3 billion loan secured
by GCL New Energy, a Chinese solar project developer and investor, from China
Merchants Bank, Nanjing Branch.
Announced large-scale project funding came to
$1.9 billion in 26 deals, compared to $2.5 billion in 29 deals in Q1 2015. The Top 5 large-scale project funding deals included the $355 million
raised by GE Energy Financial Services in a partnership with Pacifico Energy,
for the development of a 96.2 MW solar PV project in Hosoe, Kyushi Island,
Miyazaki prefecture, Japan. GE Energy Financial Services brought in $62.7
million in equity and secured a $292 million loan from a syndicate of 12
Japanese financial institutions led by The Bank of Tokyo Mitsubishi UFJ. sPower,
an independent power producer, received a $168.5 million loan from KeyBank National Association,
OneWest Bank and Zions Bank for 25 solar assets, totaling 144 MW in three separate
portfolios. Low Carbon, a renewable energy developer, operator and investor,
secured $163.5 million in refinancing from Macquarie Infrastructure Debt
Investment Solutions for part of its existing portfolio of twelve operational
solar projects with a cumulative capacity of 99.2 MW in the United Kingdom. Kong
Sun Holdings Company received a $163 million finance lease credit line from
Jiangsu Solarbao Leasing, a wholly-owned subsidiary of SPI Solar, for its PV
projects in China. ONEE, Morocco’s state-owned electricity and water company, received
a $149 million loan for three solar PV projects with a total capacity of 75 MW.
The projects are co-financed by a $125 million World Bank loan and a $23.95
million loan from the Clean Technology Fund.
Residential and commercial solar funds raised
$1.93 billion in five deals, similar to the $1.92 billion raised in 10 deals
last quarter, and the highest quarter to date. Of this total, $775 million went
to three loan funds and $1.2 billion went to two third-party lease or PPA
funds. SolarCity announced $1.5 billion in two separate deals.
were 17 corporate M&A transactions in the solar sector this quarter,
compared to 29 transactions in Q1 2015. Solar downstream companies accounted
for 10 of these M&A transactions.
largest disclosed M&A transaction was the acquisition of RBI Solar, Rough
Brothers Manufacturing, and affiliates (collectively RBI) for $130 million by
Gibraltar Industries. RBI Solar is engaged in the design, engineering,
manufacturing and installation of solar mounting systems for commercial and
utility-scale solar projects.
were 66 large-scale solar project acquisitions totaling $2.9 billion with about 3.5 GW changing hands, compared
to 44 transactions in Q1 2015 for $953 million. The
top disclosed project acquisition by dollar amount was the $669 million
acquisition of four solar projects totaling 450 MW by Abengoa Yield, a dividend
growth oriented yieldco which will own, manage and acquire renewable energy,
conventional power and electric transmission lines and other contracted
revenue-generating assets, from Abengoa, a Spanish multinational corporation
and a solar project developer. NRG Yield, a developer of renewable and
conventional energy and thermal infrastructure projects and a yieldco
subsidiary of NRG Energy, acquired a 25 percent interest in the 550 MW Desert
Sunlight solar project in Riverside, California from GE Energy Financial
Services for $285 million. United Photovoltaics Group, a Chinese investor and
operator of PV projects, acquired 17 solar projects in China from Hareon Solar
Technology, a vertically-integrated solar PV manufacturer this quarter. The top
acquisitions included the 172.5 MW Gansu solar project for $268.6 million, the
115 MW Hebei solar project for $181 million, and the 100 MW Taiyuan solar
project for $163 million.
also tracked 209 new large-scale project announcements in various stages of
development worldwide in Q2 2015 representing 10.4 GW.
About Mercom Capital Group
Capital Group, llc, is a global communications and consulting firm focused
exclusively on clean energy and financial communications. Mercom’s consulting
division advises cleantech companies on new market entry, custom market
intelligence and overall strategic decision making. Mercom’s consulting
division also delivers highly respected industry market intelligence reports
covering Solar Energy, Wind Energy and Smart Grid. Our reports provide timely
industry happenings and ahead-of-the-curve analysis specifically for C-level
decision making. Mercom’s communications division helps clean energy companies
and financial institutions build powerful relationships with media, analysts,
government decision makers, local communities and strategic partners. For more
information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market
intelligence reports, visit: http://mercomcapital.com/market_intelligence.php.
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