Mercom Capital Group has released its report on funding and merger and acquisition (M&A) activity for the global solar sector in the first quarter of 2021.
Total corporate funding, including venture capital funding, public market, and debt financing into the solar sector in Q1 2021, came to $8.1 billion in 36 deals, a 21% increase compared to $6.7 billion in 43 deals in Q4 2020.
Raj Prabhu, CEO of Mercom Capital Group, said: “Financing activity in the solar sector started strong in 2021 with Q1 numbers up substantially year-over-year. Even though solar stocks lost some of their spark in the first quarter after an unprecedented run in 2020, a big IPO and record securitisation activity lifted overall fundraising totals. Solar assets continue to be in great demand with almost 15 GW of projects acquired in Q1.”
The top corporate funded deal in Q1 2021 was the $2.2 billion raised by Shoals Technologies Group through an IPO.
Global VC funding for the solar sector in Q1 2021 came to $1 billion in 14 deals.
Of the $1 billion in VC funding raised in 14 deals during Q1 2021, 96% went to solar downstream companies with $990 million (M) in 10 deals.
The top VC/PE funded company in Q1 2021 was Loanpal which raised $800 million
A total of 43 VC investors participated in Q1 2021.
Public market financing in the solar sector dropped slightly, with $2.8 billion raised in eight deals in Q1 2021 compared to $3 billion raised in 17 deals in Q4 2020.
Announced debt financing in Q1 2021 jumped to $4.3 billion in 14 deals compared to Q4 2020 with $2.9 billion in 14 deals.
Five securitisation deals totaling $1.4 billion were recorded in Q1 2021, the largest amount of financing through securitisation since 2013.
There were 20 solar M&A transactions in Q1 2021 compared to 12 transactions in Q1 2020.
There were 82 large-scale solar project acquisitions in Q1 2021 compared to 83 transactions in Q4 2020. Acquired projects totaled 14.6 GW in Q1 2021.