Corporate solar financing rebounds in second half of 2020

Facebook
Twitter
LinkedIn
Reddit
Email
Corporate funding for solar projects rebounded in the second half of last year thanks in-part to public market financing Image: Wikimedia Commons

Corporate investment in solar projects reached US$10 billion in the second half of last year, recovering from economic shock induced by COVID-19.

That’s according to a new report from research firm Mercom Capital Group, which states that corporate funding for the sector rose by US$2.8 billion last year, helped by a surge in large-scale project investment and debt financing.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The figure for 2020 comes six months after Mercom’s half-year report, which warned that corporate solar funding had fallen to just US$4.5 billion in the first six months of the year due to the global health crisis and subsequent economic shock.

A total of 39.5GW of large-scale solar projects were acquired in 2020, but close to half of that capacity was purchased in the last three months of the year, with 15GW of projects purchased in Q4, reflecting a renewed confidence in the solar sector among investors.

The rate of investment in solar projects, which in Mercom's report includes venture capital, private equity, debt financing and public market financing, rebounded significantly in the second half of the year, and rose by close to a quarter (23.9%) across the whole of 2020, despite a slowdown in VC investment.

Solar corporate funding deals have been in decline since 2017, but their value has continued to rise Image: Mercom Capital

VC funding took a small hit last year as economic disruption made venture capital groups more cautious over smaller scale investment. A total of 41 deals were struck with VC groups last year totalling US$1.2 billion, roughly US$200 million less than the 53 deals signed in 2019.

Although just three Initial Public Offerings (IPOs) took place in the solar market last year, they raised US$1.3 billion, equal to the combined value of the 6 IPOs launched in 2019. Technology developer Array upsized its IPO target in October from US$100 million to US$1 billion.

The value of public market financing activity last year more than doubled last year, with solar companies raising US$5.1 billion through 27 deals globally.

The figures come after a “tough first half” to 2020, according to Marcom Capital’s chief executive Raj Prabhu, who added that publicly traded companies in the solar sector saw “unprecedented” investment growth. Solar exchange-traded funding rose by 225%, he said, while the share price of 15 listed solar companies doubled.

Solar asset acquisitions, Prabhu said, “have become even more sought-after as an investment haven, especially in the uncertain COVID economy.”

Read Next

June 19, 2025
Boralex is driving organic growth across Canada, the US, France, and the UK, fueled by a project pipeline totalling 8GW.
June 17, 2025
The World Bank has approved a loan of around US$600 million to support the development of 540MW of new solar and wind capacity in Indonesia.
June 5, 2025
Indian solar module manufacturer Vikram Solar has received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) and raise capital through the public markets.
June 5, 2025
Policy uncertainty in the US is likely to disrupt investment in clean energy, according to a recent report from Crux.
June 5, 2025
Investment in clean energy and grids will reach US$2.2 trillion in 2025, double the expected investment into fossil fuels this year, according to data from the International Energy Agency (IEA).
June 3, 2025
US independent power producer (IPP) Silicon Ranch has invested US$3 million in autonomous robotics company Swap Robotics.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico