Corporate solar financing reached ten-year high in 2021 as M&A task soared

Jan 18, 2022 03:13 PM ET
  • Business funding in the worldwide solar sector reached a ten-year high in 2021 as the sector recuperated from a COVID-affected 2020, brand-new research study from Mercom Capital Group exposes.
Corporate solar financing reached ten-year high in 2021 as M&A task soared
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Extending venture capital and also exclusive equity, financial obligation financing and also public market financing, total business solar financing last year concerned US$ 27.8 billion from 144 bargains, virtually double the US$ 14.5 billion elevated in 2020, the consultancy said in its 2021 Solar Funding and also M&A Report.

Mergers and acquisitions (M&A) activity soared to reach 126 purchases in 2021-- the highest possible variety of offers ever before recorded-- with many contracts involving downstream solar firms.

The leading M&A purchase last year, Mercom stated, was Indian solar programmer Adani Green Energy's acquisition of SB Energy India, valuing the renewable resource company at US$ 3.5 billion.

In regards to large-scale solar project acquisitions in 2021, there was a 21% walk on 2020, with 280 plants transforming hands, standing for 69GW of installments globally. Project developers and independent power manufacturers were claimed to be one of the most energetic acquirers in 2021, with almost 34GW of solar projects acquired, adhered to by oil and also gas majors, which acquired 13.8 GW of plants.

Venture capital (VC) and also exclusive equity funding in the solar industry leapt from US$ 1.2 billion in 2020 to US$ 4.5 billion last year, when there were 11 VC funding offers of more than US$ 100 million.

According to Mercom, the top VC-funded solar business in 2021 were GoodLeap (previously Loanpal), a domestic solar loan carrier that elevated US$ 1.6 billion in two separate purchases, complied with by independent power producer Silicon Ranch, which protected US$ 775 million in new equity capital.

Silicon Ranch thorough just how the firm prepares to deploy capital to sustain its approach of co-locating solar plants with regenerative farming.

Mercom stated the next off largest VC deal last year were software provider Aurora Solar safeguarding US$ 250 million, adhered to by programmer Nexamp landing US$ 240 million, German solar installer Enpal getting US$ 175 million and also the US$ 150 million increased by racking and tracking manufacturer GameChange Solar.

Raj Prabhu, Chief Executive Officer of Mercom Capital Group, stated funding task across the field bounced back strongly adhering to 2020. "There was even more money than ever before going after deals and more demand than supply of eye-catching companies and possessions as organisations as well as funds want to fulfil their ESG and also clean energy requireds."

Record securitisation activity was a key factor to the surge in solar financial obligation financing last year, which boosted 91% on 2020 to US$ 15.8 billion, Mercom stated.

Public market funding, on the other hand, was up 49% to US$ 7.5 billion, with the biggest offer from balance of system solutions service provider Shoals Technologies, which raised US$ 2.2 billion with its going public.

10 solar firms worldwide went public last year through IPOs and also manage unique purchase acquisition firms, according to Mercom.

Solar Installers, Manufacturers