Mercom says solar corporate funding in Q2 stood at USD 5.9bn

Global corporate funding in the solar sector in April-June 2015 declined by 7.8% quarter-on-quarter to USD 5.9 billion (EUR 5.36bn), including venture capital/private equity, debt financing, and public market financing.

According to consulting firm Mercom Capital Group LLC, debt financing has fallen to USD 3.4 billion in the second quarter (Q2) from USD 5 billion in the preceding three-month period. Meanwhile, public market financing hit a record USD 2.3 billion after USD 1.3 billion in January-March.

The USD-1.3-billion loan secured by solar sector-focused GCL New Energy Holdings Ltd (HKG:0451) was the biggest debt financing deal in the period under review. Abengoa Yield Plc’s (NASDAQ:ABY) USD-670-million share issue was the largest public market financing transaction.

There was only one solar initial public offering (IPO) in the quarter. 8point3 Energy Partners, the joint yieldco of US solar majors First Solar Inc (NASDAQ:FSLR) and SunPower (NASDAQ:SPWR), raised USD 420 million.

Venture capital (VC) funding fell to USD 142 million in 24 transactions in Q2 from USD 195 million in 27 deals in Q1, Mercom noted.

Mercom has also tracked 26 large-scale project funding deals with a combined value of USD 1.9 billion, down from USD 2.5 billion in Q1. Residential and commercial solar funds collected USD 1.93 billion in five deals, which is close to the USD 1.92 billion raised in 10 deals in the preceding quarter.

Roughly 3.5 GW of large-scale solar assets were sold in Q2 in 66 deals with a total value of USD 2.9 billion. This is a significant increase from Q1’s 44 deal for USD 953 million. There were also 17 corporate merger and acquisition (M&A) transactions in the solar sector, including 10 involving downstream companies.

Mercom said 209 new large-scale solar projects in various stages of development have been announced in Q2. Their combined capacity is 10.4 GW.

(USD 1 = EUR 0.909)

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