In the report that tracks solar financing In the first nine months (9 months) of 2022, Mercom Capital said $18.7 billion in corporate investment was made in the US solar industry. This number represents a decrease of 18% compared to the $22.8 billion collected in the 9 months of 2021. This total includes all venture capital, public market and debt financing in the industry. More than 51 GW of projects were acquired during this period.
“Corporate funding for the 9 months of 2022 is lagging behind last year’s pace, impacted by inflation and high interest rates, but still ahead of the previous six years. Following the passage of the Inflation Reduction Act, momentum has been restored in the United States. We are witnessing a resurgence in venture capital and private equity funding that has been breaking funding records since 2010. There is no longer any doubt about the growth potential of the solar industry – the race is now on to acquire the right technology and portfolio to scale,” said Raj Prabhu, CEO, Mercom Capital Group.
The most popular venture capital deals were $750 million raised by Intersect Power, $500 million by Longroad Energy, $375 million by Palmetto, $360 million by Gokin Solar, $350 million by Agilitas Energy, and $260 million by Sun King.
Public market financing reached $4.9 billion across 11 deals, down 22% from $6.3 billion across 23 deals in 2021. Announced debt financing was $8.3 billion across 48 deals, down 42% from 9M 2021, when $14.2 billion was raised across 50 deals. Eight securitization deals totaled $2.3 billion, down 28% from $3.2 billion in 11 deals in 9M 2021. A total of more than $13.4 billion has been raised through securitization deals since 2013.
Project developers and independent power producers (IPPs) were the largest buyers of solar projects in Q3 2022, purchasing 10.8 GW. Investment companies followed with 2.4 GW and oil and gas companies that acquired 345 MW of projects. Installers purchased 252 MW of facilities, power plants – 240 MW. The remaining companies purchased a total of 180 MW.
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