SOURCE: Mercom Capital Group

Mercom Capital Group

July 14, 2015 10:00 ET

Total Corporate Funding in Solar Down Slightly at $5.9 Billion in Q2 2015, Project Acquisitions Soar to $2.9 Billion, Reports Mercom Capital Group

Record $1.93 Billion Raised by Residential and Commercial Solar Funds

AUSTIN, TX--(Marketwired - Jul 14, 2015) - Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the solar sector in the second quarter of 2015.

Total global corporate funding in the solar sector, including venture capital/private equity (VC), debt financing, and public market financing raised by public companies, decreased to $5.9 billion, compared to $6.4 billion in Q1 2015.

Raj Prabhu, CEO of Mercom Capital Group, commented, "Overall corporate funding was down slightly this quarter. Yieldcos had a significant impact on the financial activity in the sector and raised $1.6 billion in public markets, about $800 million in debt, and accounted for almost a third of all large-scale project acquisitions. Residential and commercial solar funds continue to attract record funding as the ITC expiration deadline approaches."

Chart: Solar Corporate Funding Q2 2014-Q2 2015

VC funding dipped to $142 million in 24 deals, compared to $195 million in 27 deals in Q1 2015. Solar downstream companies continued to attract most of the VC funding with $60 million in 13 deals.

Among the Top 5 VC deals in Q2 2015, the largest was the $40 million raised by Applied Solar Technologies. Solexel raised $29.5 million, Solantro Semiconductor raised $11, Flisom raised $10.7 million, and Persimmon Technologies raised $8.9 million.

Chart: Solar Top 5 VC Deals in Q2 2015

A total of 28 VCs invested in Q2 2015, with Clean Energy Venture Group participating in two deals.

Public market financing was a record $2.3 billion. There was one IPO this quarter: 8point3 Energy Partners raised $420 million and was listed on NASDAQ.

Debt financing fell this quarter to $3.4 billion.

Announced large-scale project funding came to $1.9 billion in 26 deals.

Residential and commercial solar funds raised by third-party solar finance companies totaled $1.93 billion in five deals, the highest quarter to date. Of this total, $775 million went to three loan funds and $1.2 billion went to two lease or PPA funds.

There were 17 corporate M&A transactions in the solar sector this quarter, compared to 29 transactions in Q1 2015. Solar downstream companies accounted for 10 of these M&A transactions.

The largest disclosed M&A transaction was the acquisition of RBI Solar, Rough Brothers Manufacturing, and affiliates (collectively RBI) for $130 million by Gibraltar Industries.

There were 66 large-scale solar project acquisitions totaling $2.9 billion with about 3.5 GW changing hands. Project developers acquired 1.7 GW of large-scale solar projects followed by yieldcos with 1.1 GW.

Chart: Solar Top 5 Project Acquisitions by Megawatts in Q2 2015

Mercom also tracked 209 new large-scale project announcements in various stages of development worldwide in Q2 2015 representing 10.4 GW.

To learn more about the report, visit: http://store.mercom.mercomcapital.com/product/q2-2015-solar-funding-and-ma-report/

About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and research and consulting firm focused exclusively on clean energy and financial communications. Mercom delivers widely read industry funding and market intelligence reports covering Solar Energy, Wind Energy and Smart Grid. Mercom's consulting division advises cleantech companies on new market entry, custom market intelligence and overall strategic decision-making. Mercom's communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision-makers, local communities and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom's popular market intelligence reports, visit: http://mercomcapital.com/market_intelligence.php