Publicly-Traded Solar Companies Had an Unprecedented Year with 15 solar stocks over 100% in 2020
The global corporate funding into the solar sector – including venture capital (VC), private equity (PE), debt financing, and public market financing – increased 24% to $14.5 billion in 2020 from $11.7 billion in 2019.
The findings were revealed in Mercom Capital Group’s 2020 Q4 and Annual Solar Funding and M&A Report, which covered 375 companies and investors from around the world.
Raj Prabhu, CEO of Mercom Capital Group, said, “Following a tough first half when corporate funding was down 25% year-over-year (YoY), recovery has been swift and broad, with corporate funding up 24% for the year. Publicly-traded solar companies had an unprecedented year. The solar ETF was up 225%, with 15 solar stocks over 100% in 2020. Public market funding was also up with the help of several IPOs, and debt financing was up on the back of securitization deals. Solar asset acquisitions were at an all-time high in a pandemic year and have become even more sought-after as an investment haven, especially in the uncertain COVID economy.”
In 2020, global venture capital and private equity funding in the solar sector stood at $1.2 billion in 41 deals, compared to $1.4 billion in 53 deals in the previous year. Out of $1.2 billion in VC/PE funding in 2020, 27 solar downstream companies secured $1.1 billion, accounting for 90% of total VC funding.
Solar service providers, photovoltaic (PV) companies, and Balance of System companies raised $61 million, $17 million, and $15 million, respectively. While Thin-film technology companies raised $15 million, and Concentrator PV companies raised $5.5 million.
Some of the top VC funding deals in 2020 included $390 million raised by Ayana Renewable Power, $225 million raised by Silicon Ranch Corporation, $76 million raised by Brighte, $72 million raised by Sunseap Group, and $50 million each raised by Aurora Solar and Zero Mass Water. In 2020, a total of 102 VC and PE investors participated in funding deals, with five involved in multiple rounds.
Source:- Mercom India