$4.9 Billion Raised by Residential and Commercial
Solar Funds, VC Funding Reaches $1.3 Billion
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 2016.
global corporate funding in the solar sector, including venture capital/private
equity (VC), debt financing, and public market financing, raised by public
companies came to $9.1 billion, compared to $25.3 billion in 2015, a 64 percent
To learn more about the report, visit: http://bit.ly/MercomSolarQ42016
“It was a challenging year
for solar companies in terms of fundraising even as demand is expected to reach
an all-time high,” commented Raj Prabhu, CEO and Co-founder of Mercom Capital
Group. “However, 2017 looks better than
expected as lower module prices are expected to boost installation levels,” he
VC investments came to $1.25 billion in 77 deals in 2016, compared
to $1.1 billion in 83 deals in 2015.
downstream companies accounted for 80 percent of the VC funding in 2016, with
$985 million of the $1.3 billion raised. Investments in PV technology companies
came to $97 million and thin-film companies brought in $95 million. Balance of
Systems (BoS) companies raised $37 million. Service providers raised $24
million. In one deal each, the CPV category raised $10 million and the CSP
category raised $2.3 million.
the Top VC deals in 2016,
the largest was the $300 million raised by Sunnova Energy, followed by the $220
million raised by Solar Mosaic. Origis
Energy and Silicon Ranch each raised $100 million.
There were 100 investors
that participated in funding rounds in 2016, with five involved in multiple
rounds: Energy Access Ventures, ENGIE Rassembleurs d’Energies, International
Finance Corporation (IFC), KawiSafi Ventures, and Neo Solar Power.
financing was lower this year with $1.8 billion in 27 deals, compared to the
2015 record of $6 billion in 38 deals. There were three IPOs which brought in $230
million – they were BCPG (a subsidiary of Bangchak
Petroleum), Azure Power, and Ripasso Energy. Four yieldcos raised public market
financing. There was no IPO activity by yieldcos in 2016.
financing in 2016 totaled $6 billion compared to the $18.3 billion in 2015. There
were three securitization deals in 2016 totaling $387 million. SolarCity raised
a total of $234.6 million in two securitization deals and Shenzhen Energy had
one securitization deal for $152 million.
large-scale project funding in 2016 came to $9.4 billion in 133 deals this year,
compared to 2015 with $11.6 billion in 124 deals. A total of 153 investors funded
about 5.9 GW of large-scale solar projects this year.
top investors for large-scale project funding were Santander, which invested in
eight projects, followed by Bpifrance, Natixis
and NORD/LB which invested in five projects each.
was a total of $4.9 billion raised in 30 residential and commercial solar
project funds in 2016 compared to $5.7 billion raised in 24 funds in 2015. SolarCity,
Sunrun, Solar Mosaic, Spruce Finance, and Tabuchi Electric were the top
fundraisers in 2016. Since 2009, solar residential and commercial firms offering
lease, PPA and loans have raised more than $22.5 billion. In the last three quarters of 2016,
loans made up almost 47 percent of residential/commercial funds announced.
were 68 corporate M&A transactions in the solar sector in 2016 compared to
81 transactions in 2015. Solar downstream
companies were involved in 38 of these transactions. BayWa r.e., DNV GL, Golden Concord
Holdings, and Voltalia acquired two companies each. The largest and the most notable transaction
in 2016 was the $2.1 billion acquisition of SolarCity by Tesla Motors.
were a record 218 large-scale solar project acquisitions for more than 12.2 GW,
compared to 2015 when 12.7 GW changed hands in 204 transactions.
also tracked 133 large-scale project announcements worldwide in Q4 2016 totaling
5.8 GW and 826 project announcements totaling 40.4 GW for all of 2016.
learn more about the report, visit: http://bit.ly/MercomSolarQ42016
About Mercom Capital Group
Capital Group, llc, is a global research and communications firm focused 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, 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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