Finance, Solar, Sourcing Renewables - January 12, 2021
Total corporate solar funding increased 24% in 2020
Mercom Capital Group announced on Jan. 11 that total corporate funding into the solar sector globally, including venture capital, private equity (VC), debt financing, and public market financing, came to $14.5 billion in 2020, a 24% increase compared to the $11.7 billion raised in 2019.
“Following a tough first half when corporate funding was down 25% year-over-year, recovery has been swift and broad, with corporate funding up 24% for the year,” Raj Prabhu, CEO of Mercom Capital Group, said in a statement. “Publicly-traded solar companies had an unprecedented year. The solar ETF was up 225%, with 15 solar stocks up over 100% in 2020. Public market funding was also up with the help of several IPOs, and debt financing was up on the back of securitization deals. Solar asset acquisitions were at an all-time high in a pandemic year and have become even more sought-after as an investment haven, especially in the uncertain COVID economy.”
Of the $1.2 billion in VC/PE funding raised in 41 deals in 2020, $1.1 billion went to 27 solar downstream companies, which accounted for 90% of total VC funding in 2020. Solar service providers raised $61 million; PV companies raised $17 million; the balance of system companies brought in $15 million; thin-film technology companies raised $15 million, and CPV companies raised $5.5 million.