In a report that tracks solar funding through the first nine months (9M) of 2022, Mercom Capital said that $18.7 billion of corporate investments took place in the United States solar industry. The figure represented an 18% decrease from the $22.8 billion raised in 9M 2021. This total includes all venture capital funding, public market, and debt financing in the industry. Over 51 GW of projects were acquired over this time period.
“Corporate funding in 9M 2022 is behind pace year-over-year, impacted by inflation and high-interest rates but is still ahead compared to the previous six years. There is renewed momentum after the passing of the Inflation Reduction Act in the United States. We have seen a resurgence in VC and private equity funding, breaking funding records since 2010. There is no longer any doubt about the growth potential of the solar industry – it is now a race to acquire the right technology and portfolios to scale,” said Raj Prabhu, CEO of Mercom Capital Group.
The top venture capital deals were $750 million raised by Intersect Power, $500 million raised by Longroad Energy, $375 million raised by Palmetto, $360 million by Gokin Solar, $350 million raised by Agilitas Energy, $260 million raised by Sun King.
Public market financing reached $4.9 billion over 11 deals, 22% lower than $6.3 billion over 23 deals in 2021. Announced debt financing was $8.3 billion in 48 deals, 42% lower than 9M 2021 when $14.2 billion was raised in 50 deals. Eight securitization deals totaled $2.3 billion, a 28% decrease compared to $3.2 billion in 11 deals in 9M 2021. Cumulatively, over $13.4 billion has been raised through securitization deals since 2013.
Project developers and independent power producers (IPP) were the largest acquirers of solar projects in Q3 2022, purchasing 10.8 GW. This was followed by investment firms with 2.4 GW, and oil and gas companies, which acquired 345 MW of projects. Installers acquired 252 MW of projects, and electric utilities acquired 240 MW. Other companies acquired a total of 180 MW.
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