US Lawmakers Urge Crackdown on Foreign-Made Blue Wafers Imports

China to Impose 2% Consumption Tax on Batteries and Solar Cells

Delhi Regulator Simplifies Net Metering Rules for Rooftop Solar Projects

Coal India Announces Winner of 750 MWh Energy Storage Consultancy Auction

Rajasthan Tenders 172 MW/688 MWh Battery Energy Storage Projects

SECI Seeks Bulk Power Buyers for Long-Term Renewable Energy Procurement

Ather Energy Approves ₹12 Billion Preferential Fundraise

Malaysia Launches 2.65 GW Solar Tender with 1.25 GW Battery Storage

Primo Chemicals to Procure Solar Power from TPCS’ 50 MW Project

Borosil’s Revenue Up 17% YoY in Q1, Advances 600 TPD Solar Glass Expansion

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2023/10/amazon_polly_59603.mp3?version=1698067126">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>The total global corporate funding in the solar sector during the nine months (9M) of 2023, including venture capital (VC) investments, public market funding, and debt financing, reached $28.9 billion, a 55% year-over-year (YoY) increase from $18.7 billion.
The numbers were revealed in Mercom Capital Group&#8217;s newly released <a href="https://mercomcapital.com/product/9m-q3-2023-solar-funding-ma-report/" target="_blank" rel="noopener">9M and Q3 2023 Solar Funding and M&amp;A Report</a>.
Despite the surge in funding amounts, there was a 5% YoY decline in the number of deals. During 9M 2023, 124 deals were announced against 131 deals during the corresponding period in 2022.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Solar-corporate-funding.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-59609 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Solar-corporate-funding.png" alt="Solar corporate funding" width="544" height="378" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Solar-corporate-funding.png 1316w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Solar-corporate-funding-300x208.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Solar-corporate-funding-768x533.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Solar-corporate-funding-650x451.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Solar-corporate-funding-624x433.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Solar-corporate-funding-600x417.png 600w" sizes="auto, (max-width: 544px) 100vw, 544px" /></a>
&#8220;Despite grappling with inflationary challenges and the impact of elevated interest rates, the solar industry has displayed remarkable resilience throughout the initial three quarters of 2023. This resilience can be attributed to a strong global commitment towards achieving energy transition goals and substantial demand driven by the Inflation Reduction Act. These factors have enabled the sector to withstand persistent economic challenges and maintain its allure among investors,&#8221; noted Raj Prabhu, CEO of Mercom Capital Group.
According to the report, global VC funding activity saw a 4% YoY growth in 9M 2023. The data reveals that a total of $5.7 billion was invested across 51 deals during this period, compared to $5.5 billion raised across 72 deals in 9M 2022.
In terms of attracting investments from VC funding, the solar downstream companies dominated the landscape. These companies secured 28 deals amounting to $3.8 billion in the January &#8211; September period.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-VC-funded-solar-companies-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-59616 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-VC-funded-solar-companies-1.png" alt="Top VC funded solar companies" width="605" height="465" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-VC-funded-solar-companies-1.png 848w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-VC-funded-solar-companies-1-300x231.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-VC-funded-solar-companies-1-768x590.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-VC-funded-solar-companies-1-650x500.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-VC-funded-solar-companies-1-624x480.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-VC-funded-solar-companies-1-600x461.png 600w" sizes="auto, (max-width: 605px) 100vw, 605px" /></a>
The top VC deals in 9M 2023 were: $471 million raised by 1KOMMA5°, $428 million raised by Enfinity Global, $375 million raised by Silicon Ranch, $360 million raised by CleanMax, and $350 million raised by Juniper Green Energy.
A total of 159 VC investors participated in solar funding in 9M 2023.
The solar sector witnessed a substantial increase in public market financing from January to September. A total of $7.2 billion was raised through 19 deals, representing a 47% surge compared to the $4.9 billion generated from 11 deals in 2022.
Announced solar debt financing activity experienced a 93% YoY growth. The data reveals that $16 billion was raised across 54 deals during this period, compared to $8.3 billion raised across 48 deals in 9M 2022.
Securitization deals experienced a 39% YoY growth in 9M 2023. A total of $3.2 billion was raised across ten deals during this period, compared to $2.3 billion raised across eight deals in 2022.
&#8220;Despite high interest rates, there has been a notable increase in solar debt financing. The solar industry&#8217;s huge potential and a clear understanding of incentives and provisions have encouraged investors and banks to support solar companies,&#8221; Prabhu said.
In 9M 2023, there were 75 solar M&amp;A transactions, down from 90 last year. The largest deal was Brookfield Renewable&#8217;s acquisition of Duke Energy&#8217;s U.S. commercial renewables business for approximately $2.8 billion.
Prabhu explained that M&amp;A activity has slowed down, especially on the project side. Many companies have relied on borrowing to fund M&amp;A deals, and with elevated borrowing costs, they are now reconsidering their timelines for such transactions. This has resulted in some deals being pushed back or delayed as companies strategize for a more favorable financial environment.
He also noted that project acquisitions had been affected by interconnection delays, labor shortages, and stricter evaluation of deals.
&#8220;Despite these challenges, companies are hopeful that interest rates will stabilize and eventually trend down. As borrowing costs become more favorable, a renewed strength in investment activity is expected, leading to greater growth and development within the solar sector,&#8221; Prabhu noted.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-solar-MA-transactions-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-59618 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-solar-MA-transactions-1.png" alt="Top solar M&amp;A transactions" width="581" height="551" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-solar-MA-transactions-1.png 726w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-solar-MA-transactions-1-300x284.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-solar-MA-transactions-1-650x616.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-solar-MA-transactions-1-624x591.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/10/Top-solar-MA-transactions-1-600x569.png 600w" sizes="auto, (max-width: 581px) 100vw, 581px" /></a>
In all, 166 project acquisitions were made for 31.6 GW of solar projects in 9M 2023, compared to 207 acquisitions for 52.1 GW last year.
Project developers and independent power producers were the most prominent purchasers of solar projects, securing 2 GW. Following closely behind were insurance companies, pension funds, energy trading companies, industrial conglomerates, and IT firms, collectively acquiring 1.6 GW. Investment firms completed acquisitions totaling 959 MW, electric utilities acquired 877 MW, and oil and gas companies obtained 759 MW of solar projects.
&#8220;As we look ahead to Q4, it appears that this year is shaping to be exceptionally robust, defying some initial low expectations influenced by financial conditions. It&#8217;s likely to emerge as one of the strongest years for funding and M&amp;A activity,&#8221; Prabhu said.
The report encompasses a comprehensive coverage of 267 companies and investors. It spans 100 pages and includes 74 charts, graphs, and tables. For additional information regarding the report, please visit the following link: <a href="/mercomcapital.com/product/9m-q3-2023-solar-funding-ma-report/%20%20%20%0d" target="_blank" rel="noopener"> https://mercomcapital.com/product/9m-q3-2023-solar-funding-ma-report/  </a>

Corporate Funding for Solar Rises 55% YoY to $28.9 Billion in 9M 2023

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2023/07/amazon_polly_56403.mp3?version=1690203273">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>The total global corporate funding in the solar sector during the first half (1H) of 2023, including venture capital (VC) investments, public market funding, and debt financing, reached $18.5 billion, a 54% year-over-year (YoY) increase from $12 billion.
The numbers were revealed in Mercom Capital Group&#8217;s newly released <a href="https://mercomcapital.com/product/1h-q2-2023-solar-funding-ma-report/" target="_blank" rel="noopener">1H and Q2 2023 Solar Funding and M&amp;A Report.</a>
Despite the surge in funding amounts, there was a 12% YoY decline in the number of deals executed. During 1H 2023, 80 deals took place in contrast to the 91 deals recorded during the corresponding period in 2022.
<img decoding="async" class="aligncenter wp-image-56404 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture1-4.png" alt="" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture1-4.png 475w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture1-4-300x229.png 300w" sizes="(max-width: 475px) 100vw, 475px" />
Raj Prabhu, the CEO of <a href="https://mercomcapital.com/" target="_blank" rel="noopener">Mercom Capital Group</a>, noted that despite the challenging financial market conditions and high-interest rates, the solar industry demonstrated resilience throughout the first half of the year.
&#8220;We have witnessed positive trends in private equity, public market, and debt financing. These developments serve as promising indicators for the future. Notably, the current momentum is bolstered by the Inflation Reduction Act (IRA) and the global energy transition policies, which are moving forward with great urgency.&#8221;
&#8220;Demand due to the IRA is so strong that even interest rate-sensitive public market and debt financing in solar was up year-over-year. However, the lack of easy money affected M&amp;A activity negatively&#8221;, Prabhu added.
Prabhu remarked that the scale of the IRA is enormous, with a massive budget of around $370 billion allocated towards energy security and climate change programs over the next ten years.
&#8220;These incentives are comprehensive and span beyond manufacturing and generation, encompassing the entire energy supply chain. Certain domestically made components are incentivized, further bolstering the program&#8217;s scope. Notably, the speed at which things are progressing is remarkable, with approximately 50 manufacturing facilities being announced within less than a year of the IRA&#8217;s implementation. This rapid development is monumental,&#8221; Prabhu noted.
In terms of attracting investments from VC funding, the solar downstream companies dominated the landscape. These companies secured a substantial share of the funding, with 17 deals amounting to an impressive $2.5 billion in the first half of 2023.
According to the Mercom report, global VC funding activity experienced a modest 3% YoY growth in 1H of 2023. The data reveals that a total of $3.8 billion was invested across 33 deals during this period, compared to $3.7 billion spread across 53 deals in 1H 2022.
Prabhu observed that the solar market&#8217;s attractiveness overshadowed other challenges and said, &#8220;In the midst of a challenging economic landscape, global industries are experiencing a decline in VC investment, except for two sectors: AI and Cleantech. These areas remain attractive to VC investors, demonstrating immense potential.&#8221;
The top VC deals in 1H 2023 were: $471 million raised by 1KOMMA5°, $375 million raised by Silicon Ranch, $360 million raised by CleanMax Solar, $325 million raised by Amarenco, and $250 million raised by Amp Energy India.
A total of 134 VC investors participated in funding for solar projects in 1H 2023.
<img decoding="async" class="aligncenter wp-image-56406 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture2-3.png" alt="" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture2-3.png 606w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture2-3-300x253.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture2-3-600x506.png 600w" sizes="(max-width: 606px) 100vw, 606px" />
Prabhu said the future of clean and renewable energy is undeniable, with both developed and developing countries well on the energy transition path.
Pointing out how developing countries can benefit from this energy transition, Prabhu cited an example of opportunities in parts of Africa and Asia, where distributed solar solutions can bypass the need for complex and costly grid transmission infrastructure.
However, the key lies in translating energy transition goals into actionable policies and creating a conducive environment for investment.
According to Prabhu, policy stability and consistent execution are crucial to attracting the billions and trillions of dollars that can flow into these nations.
The solar sector witnessed a substantial increase in public market financing in 1H 2023. A total of $6.7 billion was raised through 14 deals, representing an impressive 103% surge compared to the $3.3 billion generated from eight deals in the corresponding period of 2022.
In 1H 2023, there were 48 solar M&amp;A transactions, down from 53 in 1H 2022. The largest deal was Brookfield Renewable&#8217;s acquisition of Duke Energy&#8217;s U.S. commercial renewables business for approximately $2.8 billion.
Additionally, 116 project acquisitions were made for 25.5 GW of solar projects in 1H 2023, compared to 148 acquisitions for 37.8 GW in 1H 2022.
<img decoding="async" class="aligncenter wp-image-56407 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture3-1.png" alt="" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture3-1.png 636w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture3-1-300x172.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture3-1-624x358.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Picture3-1-600x344.png 600w" sizes="(max-width: 636px) 100vw, 636px" />
The report encompasses a comprehensive coverage of 187 companies and investors. It spans 98 pages and includes 84 charts, graphs, and tables. For additional information regarding the report, please visit the following link: <a href="https://mercomcapital.com/product/1h-q2-2023-solar-funding-ma-report/" target="_blank" rel="noopener">https://mercomcapital.com/product/1h-q2-2023-solar-funding-ma-report/</a>

Corporate Funding for Solar Rises 54% YoY to $18.5 Billion in First Half of 2023

Solar 
Disclosed investments in the solar sector totaled $1.7 billion out of 30 transactions. Solar merger and acquisition (M&amp;A) transactions in the first quarter totaled $784 million in six disclosed deals out of a total of 10 deals.
Forms of investment included venture capital (VC) funding, financing and loans, with VC investments coming in at $297.75 million in 18 deals and all other financing and loans totaling $1.4 billion in 12 deals. Significant investments in solar include a $760 million project financing for Torresol Energy, a $250 million credit facility for MEMC and a $120 million debt and equity financing for Atlantic Wind and Solar, Inc.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2018/05/Solar-Funding-chart.jpg"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-5035" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2018/05/Solar-Funding-chart.jpg" alt="Solar Funding chart" width="540" height="295" /></a>
According to the Department of Energy (DOE) just $3.1 billion, representing only 12% of awarded funds, has actually been spent as of April 2, 2010. DOE has awarded a total of $26.7 billion so far. Out of $3.1 billion, a total of $1.4 billion was spent in the first quarter of 2010.
Smart Grid 
Disclosed investments in the smart grid sector totaled $112.13 million for 15 transactions. Smart grid merger and acquisition (M&amp;A) transactions in the first quarter was $10 million in one disclosed deal out of a total of seven deals.
Forms of investment included venture capital (VC) funding, financing and loans, with VC investment coming in at $89.13 million in 12 deals and other financing and loans totaling $23 million in three deals. Significant investments in smart grid include a $31 million VC funding for Cymbet and a $20 million revolving credit facility for Comverge.
Raj Prabhu, Managing Partner of Mercom Capital Group, commented, &#8220;Mercom has expanded its reporting beyond venture capital transactions to include other types of financing and M&amp;A transactions. This gives the industry a truer picture of what is happening in finance and M&amp;A as it relates to solar, wind and smart grid.&#8221;

Q1 2010 Report Gives Cleantech Industry A Clear Picture of VC, Financing and M&A Transactions

solar-investment

Get the most relevant India solar and clean energy news.

RECENT POSTS