Borqs Technologies, a provider of 5G wireless solutions, Internet of Things (IoT) solutions, and innovative clean energy, with global operations in the U.S., India, and China, raised $16 million in strategic funding for the growth of its solar plus energy storage business in the markets outside of Hawaii particularly in California, and for the development of 5G mobile devices.
TDR Capital Pty Limited led the funding round.
The company plans to use the funds to expand its subsidiary, Holu Hou Energy’s business in the mainland U.S., starting with California, including participation in power purchase agreements (PPA), which is the financing structure usually associated with multiple-unit residential solar solutions.
Investors/owners of the PPA pay to install complete hardware and software systems, receive utility usage payment streams directly from residents for up to 20 years, and enjoy significant income tax credits from the U.S. federal government.
Participating in the PPA may generate recurring revenue for the company when utility rates are high enough to offer favorable margins from the company’s solar+storage solutions.
Recently, Berlin-based startup Zolar, a platform that serves as an online configurator for the planning and purchasing of a rooftop PV system, raised €100 million (~$105.76 million) in a Series C funding round. The funding round was led by Energy Impact Partners and GIC and participation from existing investors, including Inven Capital, Heartcore Capital, Statkraft Ventures, and Pirate Impact Capital. The company intends to use the new funds to expand its existing business reach and roll out new digital energy products.
According to Mercom’s Q1 2022 solar funding and M&A report, total corporate funding—including venture capital (VC) funding, public market, and debt financing—into the solar sector in Q1 2022 came to $7.5 billion in 49 deals, a 51% increase compared to $5 billion raised in 32 deals in Q4 2021. However, funding was lower by 7% year-over-year (YoY) compared to Q1 2021.