There was a record 128 Solar M&A transactions in 2022
Total corporate funding for Solar companies came to $24.1 billion in 2022
AUSTIN, Texas–(BUSINESS WIRE)–#MA–Mercom Capital Group, a global clean energy communications and consulting firm, released its annual report on funding and merger and acquisition (M&A) activity for the solar sector in 2022.
Total corporate funding worldwide in the solar sector, including venture capital and private equity (VC), debt financing, and public market financing, came to $24.1 billion in 2022, a decline of 13% compared to $27.8 billion in 2021. The total deal count, however, was up by over 20% year-over-year (YoY).
“The war in Ukraine has accelerated demand for solar around the world and the Inflation Reduction Act has boosted the sector in the U.S. In 2022, we saw record venture capital and private equity funding; solar companies were acquired in record numbers; and solar projects saw its second best year for acquisitions,” commented Raj Prabhu, CEO of Mercom Capital Group. “But we are beginning to see higher interest rates bite into financing activity which resulted in lower public and debt financing in the second half of the year.”
Global VC funding in the solar sector in 2022 came to $7 billion, 56% higher compared to $4.5 billion in 2021. This is the highest amount of VC funding for solar in a single year. There were 21 VC funding deals over $100 million.
Chart: Solar VC Funding 2010-2022
Of the $7 billion in VC funding in 90 deals in 2022, $5.9 billion (84%) went to 62 Solar Downstream companies. Solar PV companies raised $864 million; Balance of System (BOS) raised $83 million; Thin-Film technology companies raised $76 million; Service Providers raised $44 million; and Concentrated Solar Power companies raised $13 million.
The top VC-funded companies in 2022 were Intersect Power ($750 million), Longroad Energy ($500 million), Yellow Door Energy ($400 million), Palmetto ($375 million), Aspen Power Partners ($350 million), and Agilitas Energy ($350 million).
Public market financing in 2022 totaled $5.1 billion.
In 2022, announced debt financing came to $12 billion.
There was a record 128 mergers and acquisition (M&A) transactions in 2022.
Chart: Solar M&A 2010-2022
There were 268 large-scale solar project acquisitions in 2022, 66 GW of solar projects changed hands, the second highest ever.
The 122-page report covered 225 companies and investors, and contains 106 charts, graphs, and tables.
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. https://www.mercomcapital.com.
Wendy Prabhu, Mercom Communications