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According to Mercom Capital Group, $18.7 billion was the total corporate funding for the solar sector during the third quarter of FY22. This is 18% less than the $22.8 billion reported last year.
The firm, released their report on the funding and merger and acquisition activity (M&A), for the solar sector during the third quarter (Q3) 2022.
Mercom Capital Group CEO Raj Prabhu stated that although corporate funding is slower than usual due to factors like inflation and high interest rates, it is still faster than the six previous years. Since 2010, we have seen a revival in venture capital funding and private equity funding. This has broken funding records.
Prabhu said, “There is no doubt about the potential growth of the solar industry — there is now a race for the right technology and portfolios to scale.”
The latest Mercom Capital Group report shows that deals have increased by 17 % year-on-year (YoY), to 131, compared with 112 deals last. Venture capital (VC) funding activity increased by 150 % to $5.5 billion in 72 deals during Q3 FY22, compared to the $2.2 million raised in 39 deals over the nine months to 2021.
Intersect Power raised $750 million, Longroad Energy raised $500 million, Palmetto raised $375 million, Gokin Solar raised $360 million, and Agilitas Energy raised $350 million. Sun King raised $260 million.
The solar public market financing reached $4.9 billion in 11 transactions, a 22 % decrease from the $6.3 billion in 23 deals during the same period in 2021. Even solar debt financing activity fell by 42% to $8.3 billion in 48 deals. This compares to $14.2 billion in 50 deals the year before.
The value of securitisation deals fell by 28% to $2.3 billion, as compared to the $3.2 billion in 11 deals last fiscal year. There were 90 transactions in solar mergers and acquisitions (M&A) during this period, compared with 83 transactions last year.