April 15 (Renewables Now) – Whole company funding within the solar energy sector world wide, together with enterprise capital (VC), public market and debt financing, arrived at USD 7.5 billion (EUR 6.88bn) within the first quarter of 2022, falling by 7% in annual phrases, reveals a brand new report by Mercom Capital Group.
The funding was raised in 49 offers. Whereas it marked a decline on a yearly foundation, the entire was 51% increased than within the fourth quarter of 2021 when 32 offers have been made.
“Though financing exercise was robust QoQ with strong demand for photo voltaic property, important headwinds are increase that may gradual the momentum significantly,” mentioned Prabhu, CEO of Mercom Capital Group. He highlighted main issues for the trade similar to provide chain hurdles, increased inflation and rates of interest. Funding exercise may very well be additional dented, Prabhu went on to say, if tariffs are imposed son photo voltaic module imports from Malaysia, Cambodia, Thailand and Vietnam.
International VC funding within the first quarter climbed by 19% on the yr to USD 1.2 billion secured in 26 offers however dropped sequentially from USD 2.2 billion raised in This autumn 2021. Clear power market and know-how providers platform Palmetto was accountable for the biggest VC funding cope with a USD-375-million elevating to aimed to hurry up the adoption of residential photo voltaic throughout the US. Aurora Photo voltaic and DSD Renewables got here subsequent on the record, with offers that introduced them USD 200 million every.
Photo voltaic public market financing in January-March slipped by 9% on a yearly foundation to USD 2.5 billion, with just one preliminary public providing (IPO) reported. Debt financing exercise, in the meantime, got here at USD 3.8 billion, zooming 137% from the earlier quarter when USD 1.6 billion was raised. The overall, nevertheless, was 12% decrease as in comparison with the year-ago interval.
The merger and acquisition (M&A) exercise included 29 photo voltaic company M&A transactions, as in comparison with 20 offers a yr earlier than.
Giant-scale photo voltaic venture acquisitions represented a mixed capability of greater than 23 GW, whereas within the year-ago interval solely 15 GW of tasks modified their possession.
(USD 1.0 = EUR 0.917)