In 2016, Q1 PV market and M&A funds fell to 2.8 billion US dollars

Mercom Capital, a global clean energy communications and consulting firm, recently released its report for the first quarter of 2016 on PV market funding and M&A activity.


According to the report, total corporate funds – including venture capital, public markets and debt financing fell to $2.8 billion in the solar industry in the first quarter of 2016, compared to $6.9 billion in the fourth quarter of 2015. The quarter-on-quarter decline was about 49%.


Total corporate funds decreased by 64 million U.S. dollars compared with the first quarter of 2015.


Raj Prabhu, CEO of Mercom Capital Group, said: "The solar industry is in a tough environment. In general, solar-listed companies are difficult to raise funds in the downturn market valuation. Last year, Yieldco, which accounts for a large proportion of debt and open market financial activities, The quarter has faded. The good news is that venture capital funds have remained well in the first quarter, securities trading activity has rebounded, and residential or commercial funds have raised $1 billion."


In the 22 transactions, the global venture capital investment in the PV market reached 406 million US dollars, while in the fourth quarter of 2015, 17 transactions raised 457 million US dollars. Year-on-year, venture capital funds increased from the first quarter of 2015, when 27 transactions were $195 million.


Most of the funds for the first quarter of 2016 were for solar downstream companies, with seven transactions reaching $333 million. Sunnova Energy raised $300 million to account for the largest percentage of the total.


In the first quarter of 2016, open market financing transactions decreased, raising only $94 million through four transactions, while last quarter's eight transactions raised $605 million, and ten transactions in the first quarter of 2015 raised $1.3 billion.


This year's securitization agreement continued to increase, with three transactions in the quarter reaching $387 million. The global PV market securitization agreement currently exceeds one billion US dollars.


The project acquisition agreement remained stable during the quarter, with 50 transactions, and approximately 2.4 GW of solar projects were acquired in the first quarter of 2016. In the fourth quarter of 2015, the transaction was 52, and about 3.3 GW of solar projects were acquired.


In the first quarter of 2016, Mercom listed 308 large-scale project announcements worldwide, total 13.8GW.

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