The solar industry keeps evolving. That’s perhaps a key takeaway from Mercom Capital Group’s most recent quarterly Global Funding and M&A Report. The report found that while corporate funding was down significantly for the quarter, residential and commercial solar funding rose to $1.36 billion worldwide.
The analytics firm found that the residential and commercial sector grew 36 percent over the first quarter of the year, which saw $1 billion in investments. SolarCity, Mosaic, and Sunnova Energy led the quarter, during which 11 deals to fund distributed solar were completed, compared to six completed in the first quarter.
“Of the $1.36 billion announced in Q2 2016, $800 million went towards the lease model and $555 million went to loan funds. Since 2009, almost $20 billion has gone into residential/commercial solar funds,” Mercom stated.
However that sector may have been the highlight for the whole solar industry. In terms of total corporate funding, including venture capital funding, public market and debt financing, Mercom said the industry saw $1.7 billion in investments in the second quarter of 2016, down 41 percent from $2.8 billion in the first quarter.
“The solar industry continues to experience weakness in terms of financing activity, and corporate funding in Q2 2016 was at its lowest level in three years,” said Raj Prabhu, CEO of Mercom Capital Group.
Indeed, the report showed that total corporate funding in the second quarter of 2016 was down significantly compared to the $5.9 billion the sector raised in the second quarter of 2015. Perhaps the biggest decline was in public market financing. In the second quarter this year that segment saw only four deals, totaling $179 million. In the second quarter of 2015 the same sector saw $2.3 billion in 12 deals.
The largest single project acquisition equaled the total investment in residential and commercial solar installations. That was the purchase of the 1,140 megawatt pipeline (solar 994 MW and wind 146 MW) pipeline of Welspun Renewables Energy by Tata Power Renewable Energy for $1.4 billion.Tweet