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.

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