Corporate Funding in Solar Sector Up 21% with $8.1 Billion in Q1 2021, Reports Mercom Capital Group

Over $1.4 billion was raised through securitization in Q1 2021

AUSTIN, Texas–(BUSINESS WIRE)–#MA–Mercom Capital Group, llc, a global clean energy communications and consulting firm, 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 (B) in 36 deals, a 21% increase compared to $6.7B in 43 deals in Q4 2020.

CHART: Solar Corporate Funding Q1 2020-Q1 2021

“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 securitization activity lifted overall fundraising totals. Solar assets continue to be in great demand with almost 15 GW of projects acquired in Q1,” said Raj Prabhu, CEO of Mercom Capital Group.

CHART: Solar Top Corporate Funding Deals in Q1 2021

The top corporate funded deal in Q1 2021 was the $2.2B raised by Shoals Technologies Group through an IPO.

Global VC funding for the solar sector in Q1 2021 came to $1B in 14 deals.

Of the $1B 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 $800M.

A total of 43 VC investors participated in Q1 2021.

Public market financing in the solar sector dropped slightly, with $2.8B raised in eight deals in Q1 2021 compared to $3B raised in 17 deals in Q4 2020.

Announced debt financing in Q1 2021 jumped to $4.3B in 14 deals compared to Q4 2020 with $2.9B in 14 deals.

Five securitization deals totaling $1.4B were recorded in Q1 2021, the largest amount of financing through securitization 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.

CHART: Solar Project Acquisitions Q1 2020-Q1 2021 (By GW)

Project Developers and Independent Power Producers were the most active acquirers in Q1 2021, with 5.2 GW.

CHART: Solar Project Acquisitions by Country Q1 2021 (By MW)

CHART: Solar Project Acquirer Mix (%) Q1 2021

340 companies and investors are covered in this 91-page report.

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About Mercom Capital Group

Mercom Capital Group is a global communications and consulting firm focused on clean energy. Mercom produces funding and market intelligence reports covering Solar and Battery Storage/Smart Grid/Efficiency. Mercom advises cleantech companies on new market entry, custom market intelligence and strategic decision-making.

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Wendy Prabhu

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