Corporate funding, including venture capital (VC), public market and debt financing in the solar sector during Q1 2020 was down 31 per cent at $1.9 billion against $2.8 billion raised in Q1 2019, according to Mercom Capital Group.

In its report for Q1 2020, it stated that the decrease in funding was primarily due to lower VC and public market financing activity in Q1 2020 as the coronavirus pandemic disrupted solar markets around the world.

“Funding levels dropped in Q1 as the coronavirus pandemic brought the global economy to a halt. Most large economies are shut down and there is minimal activity in solar markets. Solar project M&A was the bright spot at this time of uncertainty, proving once again that solar is a safe long-term bet. The worst may be yet to come, but hope is that activity picks up in the second half of the year,” said Raj Prabhu, CEO of Mercom Capital Group.

Global VC funding for the solar sector in Q1 2020 reached $145 million in nine deals, compared to $176 million raised in 13 deals in Q1 2019. The majority of VC funding raised in Q1 2020 went to solar downstream companies with $122 million in seven deals.

Solar public market financing dropped significantly with $22 million in one deal in Q1 2020, compared to $247 million in three deals in Q1 2019.

Announced debt financing in Q1 2020 totalled $1.8 billion in seven deals, compared to $2.4 billion in 19 deals in Q1 2019. One securitisation deal was recorded in the quarter.

While there were 12 solar M&A transactions in Q1 2020, compared to 18 deals in Q1 2019, the sector saw 55 large-scale solar project acquisitions (eight disclosed for $4.1 billion) in Q1 2020, compared to 54 (20 disclosed for $1.4 billion) in Q1 2019.

Over 12 GW of solar projects were acquired in Q1 2020, compared to 10.1 GW in Q4 2019. In a year-on-year (y-o-y) comparison, 5.9 GW were acquired in Q1 2019.

ReNew Power raised $450 million through a dollar bond issuance and investment company Caisse de depot et placement du Quebec (CDPQ) increased its stake in Aure Power Global.

SunEdison Infrastructure Limited (formerly YKM Industries Limited), through its subsidiary SIL Rooftop Solar Power Private Limited (SIL), acquired 100 per cent fully paid-up equity share capital, along with voting rights of Sherisha Solar Private Limited (SSPL).

Actis acquired 600 MW solar projects from Acme Cleantech Solutions for ₹30 billion (~$410 million).

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