The report shows a rise in corporate funding, including venture capital and private equity, for solar, from $1.7 billion in Q2 2016. Global VC funding almost doubled, from $174 million from 16 deals in Q2, to $342 million, also from 16 deals, in Q3.
Funding levels bounced back across the board after a weak Q2, but they are still well below last years totals, commented Raj Prabhu, CEO of Mercom Capital. slow U.S. demand, the overcapacity situation in China and global hyper-competitive auctions have affected the entire supply chain, and most solar equities are in the red year to date.
Downstream companies raised $273 million from eight deals, compared with $112 million in seven for the previous quarter. The bulk of this amount came from the $220 million raised by Solar Mosaic. Other major deals completed in the third quarter include $47 million raised by Heliatek and $20 million by BBOX.
Residential and commercial solar funds raised $1.1 billion from 5 deals in Q3, down from $1.36 billion from 11 deals in the second quarter of 2016.
18 M&A transactions took place in the quarter, four of which were the result of SunEdison selling off parts of its business having declared bankruptcy.
Mercom has tracked 185 new large-scale project announcements over Q3, which will install a total of 9.2 GW of solar PV capacity across the globe.