Complete world company funding into the photo voltaic sector – together with enterprise capital and personal fairness, debt financing, and public market financing – got here to $9.7 billion in 2018, representing a 24% drop in comparison with the $12.eight billion raised in 2017. The findings are from Mercom Capital Group’s annual report on funding and mergers and acquisition exercise for the photo voltaic sector.
In accordance with the report, world VC funding for the photo voltaic sector in 2018 fell 18% to $1.three billion in 65 offers, in comparison with $1.6 billion raised in 99 offers in 2017.
Of the $1.three billion in VC funding raised in 65 offers in 2018, $1.2 billion went to 50 photo voltaic downstream firms, which comprised 91% of the whole VC funding in 2018.
VC funding into PV know-how firms got here to $37 million, and repair suppliers raised $28 million. Investments into balance-of-system firms totaled $25 million, adopted by thin-film firms with $25 million and concentrator photovoltaics firms with $2.four million.
“2018 was a 12 months stuffed with uncertainties, which began with Part 201 tariffs, adopted by an announcement from China that it was capping installations and decreasing its feed-in-tariff,” feedback Raj Prabhu, CEO and co-founder of Mercom Capital Group. “Extra unhealthy information got here from India, which imposed safeguard duties on imports. Uncertainty stemming from the three largest photo voltaic markets on this planet was mirrored in equities of publicly traded photo voltaic firms in addition to fundraising exercise throughout the 12 months.”
The highest VC-funded firms in 2018 had been Cypress Creek Renewables, which raised $200 million, adopted by GreenYellow with $174 million and Amp Photo voltaic with $154 million. Wunder Capital raised $112 million, and Sunnova Vitality raised $100 million.
There have been 87 VC/PE buyers that participated in funding offers in 2018, with 4 concerned in a number of rounds: Field Group, Energias de Portugal, GAIA Affect Fund and New Vitality Capital Companions.
Additional, based on the report, public market financing elevated in 2018 to $2.three billion, raised in 21 offers, from $1.7 billion raised in 33 offers in 2017.
In 2018, introduced debt financing fell 36% with $6 billion in 53 offers, in comparison with $9.5 billion raised in 74 offers throughout 2017. There have been 5 securitization offers totaling $1.four billion, barely larger than the $1.three billion in 2017, says Mercom.
Massive-scale venture funding introduced in 2018 got here to $14 billion in 182 offers, much like the $14 billion raised in 167 offers in 2017. A complete of 182 buyers funded about 15 GW of large-scale photo voltaic initiatives in 2018 in comparison with 20.5 GW funded by 161 buyers in 2017.
The highest buyers in large-scale initiatives included the European Financial institution for Reconstruction and Improvement, which invested in 16 initiatives, adopted by the Dutch improvement financial institution FMO with seven offers, and Natixis with six offers.
In accordance with the report, M&A exercise within the photo voltaic sector elevated with 82 transactions in 2018 in comparison with 72 transactions in 2017. In whole, 60% of the transactions concerned photo voltaic downstream firms, with 49. Engie acquired 4 firms, whereas AlsoEnergy was concerned in three M&A transactions. International Infrastructure Companions, Shell and F2i acquired two firms every. Mercom says the biggest and most notable transaction in 2018 was the $5 billion acquisition of Equis Vitality by International Infrastructure Companions, by means of its International Infrastructure Companions III Fund together with Canada’s Public Sector Pension Funding Board and CIC Capital.
Notably, the photo voltaic sector set a report in 2018 for venture acquisitions with 29 GW in comparison with the 20.four GW in 2017, the report notes. There have been 218 large-scale photo voltaic venture acquisitions (54 disclosed for $eight.four billion) in 2018 in comparison with 228 transactions (92 disclosed for $eight.three billion) in 2017.
“About 100 GW of large-scale initiatives have been acquired since 2010 – a mirrored image of how far photo voltaic has come as an asset class,” provides Prabhu. “High quality photo voltaic initiatives at the moment are a mature, engaging funding alternative around the globe.”
Extra on Mercom’s report will be discovered here.