Global solar funding increases to USD 8.1bn in Q1 - Mercom

Total corporate funding in the global solar sector rose 21% quarter-over-quarter in the first three months of 2021, reaching USD 8.1 billion (EUR 6.7bn), according to a report by Mercom Capital Group llc.

"Even though solar stocks lost some of their spark in the first quarter after an unprecedented run in 2020, a big IPO and record securitisation activity lifted overall fundraising totals," Mercom chief executive Raj Prabhu said on Tuesday.

The USD 2.2 billion raised by Shoals Technologies Group Inc (NASDAQ:SHLS), the US provider of electrical balance of system (EBOS) products for solar, battery storage and electric vehicle (EV) charging infrastructure, in an initial public offering (IPO) was the top corporate funded deal in the quarter.

The period also saw five securitisation deals worth a total of USD 1.4 billion, the highest for this type of financing since 2013, Mercom said.

Public market financing fell slightly to USD 2.8 billion from USD 3 billion in the fourth quarter of 2020, while announced debt financing rose to USD 4.3 billion from USD 2.9 billion.

The total corporate funding numbers include venture capital (VC) funding, public market and debt financing.

There were 14 VC funding deals in the quarter totalling USD 1 billion. Solar loan platform operator Loanpal was the top VC/private equity funded company with USD 800 million raised.

Prabhu said that there is continued strong demand for solar assets as 14.6 GW of projects were acquired in the quarter. There were 82 large-scale solar project acquisitions, compared to 83 deals in the final quarter of 2020.

The number of merger and acquisition (M&A) deals in the sector was 20, compared to 12 in the first quarter of 2020.

(USD 1.0 = EUR 0.832)

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