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Global solar funding landscape was dominated by Indian solar players topping the list of VC funded companies in Q1 of 2017. ReNew Power was the highest funded company raising VC (venture capital), debt and project funding during the quarter, according to Mercom Capital, a global clean energy communications and consulting firm.
Total corporate funding (including venture capital funding, public market and debt financing) in the global solar sector doubled to $ 3.2 billion in Q1 of 2017 when compared with the preceding quarter’s $ 1.6 billion. However, total funding was up only by 15 per cent when compared with $2.8 billion in Q1 of 2016.
“Q1 funding levels were up in the solar sector from the 2016 lows, largely due to increased debt financing activity. Corporate funding never reached $ 3 billion in any of the quarters in 2016. M&A activity was also strong with several large deals. Solar public companies also had a good first quarter,” said Raj Prabhu, CEO of Mercom Capital Group.
Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector reported an increase of 78 per cent in Q1 2017 at $ 585 million with in 22 deals when compared with $ 329 million raised in the same number of deals in Q4 2016.
The amount raised was also higher y-o-y when compared with $ 406 million raised in 23 deals in Q1 2016. A large part of the VC funding in Q1 2017 went to solar downstream companies and $ 548 million was raised in nine deals.
Top VC deals included the $ 200 million raised by ReNew Power Ventures followed by $155 million raised by Greenko Energy Holdings. Hero Future Energies secured $125 million, while Silicon Ranch mobilised $55 million. A total of 23 VC investors participated in Q1 2017.
Solar public market financing came to $461 million in 13 deals in Q1 2017, slightly lower compared to the $615 million (also in 13 deals) in Q4 2016, but significantly higher compared to the same quarter of last year when $94 million was raised in four deals. There was one IPO in Q1 2017 by Clenergy compared to two in Q4 2016.
Announced debt financing came in strong with $ 2.2 billion raised in 25 deals. In comparison, there were 10 deals in Q4 2016 for a total value of $ 610 million. About $ 2.3 billion was raised in 19 deals in Q1 2016. Most of the debt was raised by solar downstream companies.
There were 29 solar M&A transactions in Q1 2017 compared to 20 transactions in Q4 2016 and 14 transactions in Q1 2016. Of the 29 total transactions in Q1 2017, 20 involved solar downstream companies.
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