Q3 solar funding defies stock market gloom - Mercom

Facebook
Twitter
LinkedIn
Reddit
Email

Total corporate funding of solar rose in the third quarter of 2015 despite the recent hammering taken by solar stock prices in the equity markets.

According to Mercom Capital’s latest report on solar funding and merger and acquisition (M&A) activity, total funding in Q3, including venture capital (VC), debt financing and public market financing, came to US$6.2 billion from US$5.9 billion in Q2.

VC funding reached US$257 million, its highest level in 2015, while debt financing also saw an uptick, rising from US$3.4 billion to US$4.1 billion.

The overall upward trend, however, was not universal, with public market financing taking a hit, reflecting the falling stock prices suffered by a number of leading solar firms in recent months.

“The third quarter of 2015 has been eventful, especially in the equity markets,” said Raj Prabhu, CEO of Mercom Capital Group. “Although solar power demand continues to grow, solar stocks have made a complete U-turn in the last three months, affecting public market financing, which was down by about a billion dollars excluding IPOs.”

According to Mercom, total public market financing fell from US$2.3 billion to US$1.8 billion. Within that figure, the IPO of SunEdison yieldco TerraForm Global raised US$675 million, while US residential solar provider Sunrun raised US$250 million in its Nasdaq offering

Generally, solar yieldcos struggled over the past quarter, raising only half what they managed in Q2.

“With yieldcos falling out of favour, their fundraising in the public markets fell by half this quarter to US$802 million,” said Prabhu.

Meanwhile, after two record quarters, residential and commercial solar funds announced in Q3 2015 dropped to US$997 million in five deals, having managed US$2 billion in Q2 across the same number of deals. However, the US$4.8 billion raised so far this year already exceeds the US$4 billion in all of last year.

Corporate M&A transactions in the solar sector in Q3 were up from 17 to 22, with highlights including SunEdison’s US$2.2 billion acquisition of Vivint Solar and Flextronics’ acquisition of tracking manufacturer, NEXTracker for US$330 million.

Overall projects transactions were down quarter on quarter, with 42 projects totalling US$1.2 billion changing hands in Q3 compared to 66 transactions in Q2 worth US$2.9 billion.

26 September 2022
The WCPEC is the world’s biggest platform for PV research and development, offering a unique possibility of international exchange by combining the three largest and most prominent international PV conferences: the European PV Solar Energy Conference (EU PVSEC), the Photovoltaic Specialists Conference (IEEE PVSC) and the International PV Science and Engineering Conference (PVSEC). In 2022, Europe has the honour to host the 8th World Conference on Photovoltaic Energy Conversion, interchanging the prestigious EU PVSEC for this year, that is being held annually for more than 40 years. After being in place for more than a quarter of a century, the WCPEC, being held every four years, is firmly established among the global PV community as THE event for the greatest minds and experts in various PV sectors to meet and discuss, to exchange and network! The conference programme is coordinated by the European Commission Joint Research Centre.
27 September 2022
The demand for rooftop solar PV is soaring, driven by falling costs of the technology against energy crises that are gripping countries globally. But while an increasing number of households turn to solar to generate their own electricity, there is now a need for more specialist equipment, technologies and services to ensure the solar transition can reach as many customers as possible. Delivering these is now a major challenge for rooftop solar installers. This webinar will analyse the characteristics of the rooftop solar market, discussing how the products, logistics, installation and servicing of solar systems has evolved in line with consumer demands.
4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.
11 October 2022
RE+ Florida returns in 2022. Solar & Energy Storage Florida is now RE+ Florida! This premier event for the Sunshine State will return October 11-12, 2022 in Miami.
11 October 2022
PV CellTech Extra will be held as a series of live webinars and on-demand sessions on 11-13 October 2022. We'll be taking a slightly further forward-looking view at the technologies and roadmaps for new cell architectures set to dominate mass production during 2023-2025 with special emphasis on the potential timelines for technologies beyond the single-junction cell design, including perovskite and hybrid concepts.
13 October 2022
The 2022 ACORE Grid Forum is a one-day event that convenes regulators, renewable, storage and transmission companies, and other leading grid experts in Washington, D.C. Speakers will examine the roles of administrative orders and actions, infrastructure policy, regional and state developments, and private sector strategies on the path to a carbon-free grid.

Read Next

September 23, 2022
India’s government has approved the second round of the production-linked incentive (PLI) scheme to incentivise domestic solar PV module manufacturing.
PV Tech Premium
September 23, 2022
Plans for a temporary revenue cap on solar PV assets across the European Union (EU) could dent investor confidence in renewables, experts have warned, amid concerns that individual member states may be able to set lower caps specific to different technologies.
September 23, 2022
Solar accounted for half of all global power generating capacity added last year, with 182GW deployed, a 25% increase on 2020, according to a report from BloombergNEF (BNEF).
PV Tech Premium
September 23, 2022
Community solar in the US is projected to grow substantially over the next decade and represents a means of expanding access to underserved communities who are being left out of the energy transition. Sean Rai-Roche explores the drivers of community solar and what obstacles need to be overcome to support its rollout.
September 22, 2022
The RE+ tradeshow has been full of hope, excitement but also short-term questions as the industry considers the significance of the IRA.
PV Tech Premium
September 22, 2022
The war in Ukraine, approaching its eighth month, is having an extremely detrimental effect on the country's solar sector.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 27, 2022
15:30 AEST (UTC +10)
Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)