funds bring in $1.1 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 the third quarter of 2016.
learn more about the report, visit: http://bit.ly/MercomSolarQ32016
corporate funding, including venture capital, public market and debt financing
into the solar sector in Q3 2016 was up to about $3 billion in 45 deals, compared
to the $1.7 billion in 32 deals in Q2 2016.
levels bounced back across the board compared to a weak Q2 but they are still well below last year’s totals,” commented Raj Prabhu, CEO and Co-Founder of
Mercom Capital Group. “The combination of slower than expected U.S. demand, the
overcapacity situation coming out of China, and global hyper-competitive
auctions leading to lower margins has affected the entire supply chain and most
of the solar equities are in the red year-to-date. The exception has been the
rebound of some of the yieldcos.”
Global VC funding (including private
equity) for the solar sector almost doubled in Q3 2016 with $342 million in 16
deals compared to the $174 million raised in the same number of deals in Q2
Solar downstream companies raised $273
million in eight deals compared to $112 million in seven deals in Q2 2016. The
largest share came from the $220 million raised by Solar Mosaic, a provider of residential solar
loans, from Warburg Pincus, Core Innovation Capital and Obvious Ventures.
top VC deals this quarter included the $47 million raised by Heliatek, $20
million raised by BBOXX, $15 million raised by d.light, and the $10 million each
raised by Morgan Solar and Off-Grid Electric.
public market financing in Q3 2016 came to $880 million in five deals,
including one IPO, compared to $179 million in four deals in Q2 2016. In Q3 of
2015, public market financing totaled $1.8 billion.
The first solar IPO this year was recorded by
BCPG, a solar downstream company for $166 million.
Debt financing came to almost $1.8 billion in
24 deals in Q3 2016 compared to 12 deals in Q2 2016 for $1.3 billion. Year-over-year,
$4.1 billion was raised in 22 deals in Q3 2015.
The top large-scale project funding
deal this quarter was Magnetar Capital’s raise of $397 million to refinance its
135 MW UK solar projects portfolio. Sinogreenergy raised $200 million to
develop a portfolio of up to 550 MW of solar projects in Taiwan. SunPower
secured a $199.7 million syndicated loan for its 100 MW Pelican Solar Project
in Chile. Gunkul Engineering secured $115.8 million in a syndicated loan for
the construction of the 31.75 MW Sendai Okura solar project in Japan. Fotowatio
Renewable Ventures received $103.4 million in project financing for the 50 MW
solar PV project in northern Jordan.
Residential and commercial solar funds
raised in Q3 2016 came to $1.1 billion in five deals compared to $1.36 billion in
11 deals in Q2 2016. Of the $1.1 billion announced this quarter, $760 million went
towards lease and $333 million went to loan funds. So far this year, close to
$3.5 billion has been raised in 22 deals. During the same period last year,
more than $5 billion was raised in 21 deals.
There were 18 solar M&A
transactions in Q3 2016 compared to 17 in the previous quarter. Solar
downstream companies accounted for half of the transactions (nine), followed by
manufacturers with five. Four acquisitions involved SunEdison companies this
quarter as a result of the company filing for bankruptcy and selling off parts
of its business.
were 55 large-scale solar project acquisitions (24
disclosed for $1.3 billion) compared to Q2 2016 which had 38 transactions (13
disclosed for $1.9 billion). About 2.6 GW of solar projects were acquired in Q3
2016 compared to 2 GW in the previous quarter.
The largest disclosed transaction was
the $218 million acquisition of a 24 percent stake in Desert Sunlight
Investment Holdings’ 550 MW solar project in California (called Desert Sunlight
Solar Energy Center) by NextEra Energy Partners. Solar Partnership Capital
acquired 152 MW of solar projects from Sky Solar Japan for $165 million.
Integrated Asset Management acquired a portfolio of 30 solar projects totaling
34 MW in Italy for $141.4 million. 8point3 Energy Partners, a yieldco company
formed by First Solar and SunPower, acquired SunPower's 49 percent stake in its
102 MW Henrietta Solar Project in California for $134 million. Macquarie Group
and BRUC Capital acquired a 37 MW solar project pipeline including 27 individual
projects in Japan from IBC SOLAR for $101.2 million.
tracked 185 new large-scale project announcements worldwide in Q3 2016 totaling
About Mercom Capital Group
Capital Group 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 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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