Global clean energy communications and consulting firm Mercom Capital Group, llc, has released its report on funding and merger and acquisition (M&A) activity for the global solar sector in the first quarter of 2018. According to the study, total corporate funding (including venture capital funding, public market, and debt financing) fell 65 percent quarter-over-quarter to $2 billion from the $5.7 billion raised in Q4 2017. Year-over-year, Q1 2018 funding was 38 percent lower than the $3.2 billion raised in Q1 2017, says Mercom.

Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector fell significantly to $161 million in 22 deals compared to $588 million raised in 23 deals in Q1 2017. The majority of the VC funding raised in Q1 2018 went to solar downstream companies with $124.5 million in 18 deals. The top VC deals included $55 million raised by Off Grid Electric, $25 million raised by D-Light Design and $23 million secured by Solaria Corporation.

Solar public market financing came to $103 million in four deals in Q1 2018, a steep decline from Q1 2017 when $461 million was raised in 13 deals. Sky Energy had the only solar IPO in Q1 2018. Announced debt financing totaled $1.8 billion in 17 deals during the first quarter of 2018 (Q1 2017: $2.2 billion). Most of the debt raised in Q1 2018 was by solar downstream companies. Large-scale project funding announced in Q1 2018 totaled $2.7 billion in 58 deals (Q1 2017: $2.6 billion). Furthermore, there were 19 solar M&A transactions announced in Q1 2018 compared to 29 transactions in Q1 2017. Of the 19 total transactions in Q1 2018, 10 involved solar downstream companies.

There were 80 large-scale solar project acquisitions (16 disclosed for $1.9 billion) in Q1 2018 compared to 49 transactions in Q1 2017 (18 disclosed for $1.9 billion). About 7.7 GW of large-scale solar projects were acquired in Q1 2018. There were 20 investment firms and funds that acquired 24 projects in Q1 2018, totaling 1.2 GW, followed by utilities and IPPs where 13 companies picked up 30 projects totaling 1.3 GW. Twelve Project developers acquired 14 projects for 3.4 GW during the quarter.