Solar Sector Remains Favorite Among VCs & Investors, Crosses $4.6 Bn in First Half of 2017

Solar Sector Remains Favorite Among VCs & Investors, Crosses $4.6 Bn in First Half of 2017

“Year-over-year (YoY) funding in Q2 2017 was about 17 percent lower compared to the 1.7 billion dollar raised in Q2 2016. “There is a great deal of uncertainty in the solar markets right now, which is reflected in funding activity. However, solar public companies, especially on the U.S. stock markets, have done well this year. A lot is riding on how the Suniva anti-dumping case plays out as it will dictate market dynamics going forward,” commented Raj Prabhu, CEO of Mercom Capital Group.

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The total corporate funding, including venture capital funding, public market and debt financing, in the first half of 2017 in Solar sector was slightly up compared to the same period in 2016 with about 4.6 billion dollar raised compared to the 4.5 billion dollar raised in first half of 2016.

According to a report released by Mercom Capital Group, llc, a global clean energy communications and consulting firm, on funding and merger and acquisition (M&A) activity for the solar sector in the second quarter of 2017 and first half of 2017, there were 97 deals in 1H 2017 compared to the 79 deals in 1H 2016. Corporate funding in the solar sector fell in Q2 with 1.4 billion dollar raised in 37 deals compared to the 3.2 billion dollar raised in 60 deals in Q1 2017.

Year-over-year (YoY) funding in Q2 2017 was about 17 percent lower compared to the 1.7 billion dollar raised in Q2 2016. “There is a great deal of uncertainty in the solar markets right now, which is reflected in funding activity. However, solar public companies, especially on the U.S. stock markets, have done well this year. A lot is riding on how the Suniva anti-dumping case plays out as it will dictate market dynamics going forward,” commented Raj Prabhu, CEO of Mercom Capital Group.

Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector in 1H 2017 was 23 percent higher with 713 million dollar compared to the 579 million dollar raised in first half of 2016, largely due to a strong first quarter in 2017. In Q2 2017, VC funding for the solar sector saw a steep decline with 128 million dollar in 23 deals compared to 585 million dollar in 22 deals in Q1 2017.

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