In the first half (1H) of 2018, the total corporate funding, including venture capital funding, public market, and debt financing rose to $5.3 billion, compared to the $4.6 billion raised in 1H 2017. This implies a 15 percent increase year-over-year (YoY).
The data was revealed in Mercom Capital Group’s newly released Q2 2018 Solar Funding and M&A Report.
“The first half of 2018 has been a roller-coaster for the solar industry marked by uncertainty due to tariffs imposed by Trump, followed by the recent Chinese subsidy pullback,” commented Raj Prabhu, CEO of Mercom Capital Group.
“Though financial activity was better compared to the same period last year, the market is still sorting out the winners and losers that would come out of a potential slowdown in Chinese demand, which is expected to result in an oversupply situation and eventual price crash in components across the globe,” added Prabhu.
Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector in 1H 2018 was 36 percent lower at $458 million when compared to the $716 million raised in the first half of 2017.
Announced debt financing activity in the first half of 2018 ($3.6 billion in 32 deals) was 22 percent higher compared to the first half of 2017 when $3 billion was raised in 33 deals. Most of the increase was due to two securitization deals: Vivint solar raised $466 million through asset back notes and Dividend Finance secured $105 million in a similar deal.
Large-scale project funding in the first half of 2018 saw $7.96 billion announced for 98 projects compared to 1H 2017 when a record $7.4 billion was raised in 81 project funding deals.
There were 117 large-scale project acquisitions in 1H 2018 totaling 11.6 GW compared to 101 project acquisitions totaling 10.9 GW in the first half of 2017. Investment firms and funds were the most active acquirers in 1H 2018, picking up projects totaling 4 GW.