Corporate funding for the solar sector experienced a significant increase in the first quarter of 2021, including various aspects of corporate funding, such as debt financing, the public market, and venture capital financing. According to a report by Mercom Capital, one of the world’s leading clean energy consulting and communications agencies, the solar sector enjoyed an increase of up to 21% during the first quarter alone.
This was valued at 8.1 billion USD and comprised of 36 deals. This is a stark contrast to the last quarter of 2020, where the solar sector only gained 6.7 billion USD, spanning 43 deals. According to Mercom’s CEO, Raj Prabhu, corporate financing for the solar sector started strong this year and will only gain more traction year after year.
Higher Demand for PV Assets in 2021 Q1
While the industry suffered some setbacks due to the pandemic, solar assets, PV assets, in particular, have bounced back and are in high demand right now, with companies acquiring almost 15 GW of projects in the first quarter.
Additionally, the report also showed the top corporate-funded deals in 2021’s Q1, with Shoals Technologies Groups snagging the top spot, raising around 2.2 billion USD via an IPO. Next was Enphase Energy’s 1.1 billion USD deal, followed by Loanpal’s raise at 800 million USD.
Overall, the global VC funding experienced an increase of up to 33% compared to the last quarter of 2020, valued at 1 billion USD for just 14 deals. In terms of large-scale acquisitions, 2021’s first quarter had 82 transactions, resulting in a total capacity of 14.6 GW.
Among the largest and most active participants were independent power producers and developers, along with investment firms. The solar project acquisitions spanned 26 countries, with Spain having the most acquisitions at 5.5 GW. These were further discussed in Mercom Capital’s 91-page report, covering 340 companies and investors worldwide.