Top Five Funding Deals of 2020 in the Indian Solar Market

After a sluggish start to the year due to the COVID-19 pandemic and the subsequent lockdown, activity in the solar sector picked up in the third quarter (Q3) of 2020, and financing activity started to rebound. There is growing optimism that things are only going to get better in 2021.

In Q3 2020, $267.8 million (~₹20 billion) was invested in the Indian solar sector. The investments increased by a significant 170% compared to $100 million (~₹1.32 billion) that came into the industry in Q2 2020 as the easing of lockdowns spurred development activity, according to Mercom’s Q3 2020 India Solar Market Update.

The top five funding deals that grabbed all the headlines in 2020:

Fourth Partner Energy Raised $15 Million in Debt Funding from Swiss Investor reponsAbility

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Fourth Partner Energy raised $15 million (~₹1.1 billion) in debt financing from Swiss investor responsAbility Investments AG. It was the Zurich-based investor’s third round of funding through its dedicated climate finance fund. According to the company, responsAbility had previously deployed two rounds of funding in Fourth Partner Energy in 2016 and 2017.

ADB Invested $15 Million in Avaada to Expand Its Solar Portfolio

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The Asian Development Bank (ADB) announced that it had signed an agreement to invest $15 million (~₹1.1 billion) in Avaada Energy Private Limited (AEPL) to help expand the company’s solar generation capacity in the country. The bank added that this was its second investment in Avaada Energy after the first round of $50 million (~₹3.7 billion) invested in April 2019.

Symbiotics Raised $17.4 Million for Fourth Partner Energy

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In another deal, Symbiotics, an investment firm specialized in emerging, sustainable, and inclusive finance, issued its first bond, the proceeds of which would be used to finance renewable energy projects. It raised ₹1.26 billion (~$17.4 million) for Fourth Partner Energy Limited. The company said that the bond proceeds would be fully used for a four-year, senior unsecured, local currency loan to Fourth Partner Energy.

Bangalore-Based Ayana Renewable Raised $390 Million in Equity Funding

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Bangalore-based renewable energy platform Ayana Renewable Power Private Limited raised $390 million (~₹28.6 billion) in equity funding. The CDC Group-UK’s development finance institution, National Investment and Infrastructure Fund (NIIF), and EverSource Capital announced equity funding of $70 million (~₹5.1 billion), $284 million (~₹20.8 billion), and $36 million (~₹2.6 billion) in Ayana Renewable Power, respectively. The company is developing solar and wind projects across India.

ReNew Power Raised $450 Million Through Dollar Bond Issue


In January 2020, ReNew Power raised $450 million (~₹31.96 billion) through a dollar bond issuance. The bonds were priced at a coupon rate of 5.875% and issued in two tranches with an average maturity of five-and-a-half years. The company added that part of the proceeds of nearly $65 million (~₹4.61 billion) would be used to meet future capital expenditure requirements.