Over 68 GW of large-scale solar projects were acquired in 2021
Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its annual report on funding and merger and acquisition (M&A) activity for the solar sector in 2021.Total corporate funding across the globe in the solar sector, including venture capital and private equity (VC), debt financing, and public market financing, came to $27.8 billion, a 91% increase compared to the $14.5 billion raised in 2020. Corporate funding in 2021 was the highest in ten years.
To learn more about Mercom’s 2021 Solar Funding and M&A Report, visit: https://mercomcapital.com/product/annual-q4-2021-solar-funding-ma-report
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"2021 was the best year for solar corporate funding as well as mergers and acquisitions since 2010. Financing activity bounced back strongly following a COVID-19-affected 2020. There was more money than ever chasing deals and more demand than supply of attractive companies and assets as organizations and funds look to fulfill their ESG and clean energy mandates,” said Raj Prabhu, CEO of Mercom Capital Group.
Global venture capital and private equity funding in the solar sector in 2021 came to $4.5 billion, a 281% increase compared to the $1.2 billion in 2020. This is the highest amount of VC funding for the solar sector since 2010. There were 11 VC funding deals of over $100 million apiece in 2021.
Global venture capital and private equity funding in the solar sector in 2021 came to $4.5 billion, a 281% increase compared to the $1.2 billion in 2020. This is the highest amount of VC funding for the solar sector since 2010. There were 11 VC funding deals of over $100 million apiece in 2021.
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Of the $4.5 billion in VC funding raised in 58 deals in 2021, $3.9 billion (89%) went to 43 Solar Downstream companies. Balance of System companies raised $219 million; Concentrated Solar Power companies bought in $108 million; Solar PV companies raised $91 million; Solar Service Providers raised $35 million; and Thin-Film technology companies raised $18 million.
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The top VC funded companies in 2021 were GoodLeap (formerly Loanpal), a residential solar loan provider, which raised $1.6 billion in two separate transactions of $800 million each, followed by Silicon Ranch Corporation, which brought in $775 million, Aurora Solar, which raised $250 million, Nexamp, with $240 million, Enpal with $175 million, and GameChange Solar, which raised $150 million.
There were 154 VC and PE investors that participated in funding deals in 2021, with seven involved in multiple rounds.
Public market financing in 2021 totaled $7.5 billion, which was 49% higher compared to $5.1 billion in 2020. The largest deal was by Shoals Technologies Group, a provider of BOS components for solar projects, which raised $2.2 billion through its IPO. Ten solar companies went public through IPOs and SPACs in 2021.
In 2021, announced debt financing came to $15.8 billion, a 91% increase compared to $8.3 billion raised during 2020. Record securitization activity was a key contributor to the rise in debt financing activity during 2021, with $3.7 billion in 13 deals.
M&A activity in the solar sector soared with 126 transactions in 2021 - the highest number of deals ever recorded. Most of the transactions involved Solar Downstream companies. The largest transaction in 2021 was Adani Green Energy Limited (AGEL), which acquired a 100% stake in SB Energy India at an enterprise valuation of approximately $3.5 billion.
There were 154 VC and PE investors that participated in funding deals in 2021, with seven involved in multiple rounds.
Public market financing in 2021 totaled $7.5 billion, which was 49% higher compared to $5.1 billion in 2020. The largest deal was by Shoals Technologies Group, a provider of BOS components for solar projects, which raised $2.2 billion through its IPO. Ten solar companies went public through IPOs and SPACs in 2021.
In 2021, announced debt financing came to $15.8 billion, a 91% increase compared to $8.3 billion raised during 2020. Record securitization activity was a key contributor to the rise in debt financing activity during 2021, with $3.7 billion in 13 deals.
M&A activity in the solar sector soared with 126 transactions in 2021 - the highest number of deals ever recorded. Most of the transactions involved Solar Downstream companies. The largest transaction in 2021 was Adani Green Energy Limited (AGEL), which acquired a 100% stake in SB Energy India at an enterprise valuation of approximately $3.5 billion.
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There were 280 large-scale solar project acquisitions in 2021 compared to 231 transactions in 2020. In 2021, the sector also saw the most project acquisition activity in terms of gigawatts, with more than 69 GW changing hands compared to 40 GW in 2020.
367 companies and investors are covered in this 131-page report, which contains 108 charts, graphs, and tables.
To learn more about Mercom’s 2021 Solar Funding and M&A Report, visit: https://mercomcapital.com/product/annual-q4-2021-solar-funding-ma-report
VC funding
Oorja Development Solutions - an off-grid solar services provider - secured $1 million in seed funding from Schneider Electric Energy Access Asia (SEEAA).
Debt funding
Virescent Renewable Energy Trust (VRET) - a renewable energy infrastructure investment trust (InvIT) from KKR’s Virescent Infrastructure - raised ₹21.5 billion (~$288.4 million) through listed non-convertible debentures and long-term debt financing.
Project funding
The Indian Renewable Energy Development Agency (IREDA) - disbursed a loan of ~₹11 billion (~$146.4 million) to Vector Green Energy, an independent power producer focused on solar and wind energy.
CleanMax Solar - a rooftop solar developer, received $34 million in funding from the Danish Investment Fund for Developing Countries (IFU).
REC Limited, a public infrastructure finance company involved in financing power projects, signed an agreement with Germany-based KfW Development Bank to avail official development assistance (ODA) loan of $169.5 million. REC will utilize the proceeds of the ODA loan to part-finance solar generation projects in India at competitive interest rates.
Corporate M&A
Reliance New Energy Solar, the green energy arm of Reliance Industries, signed an agreement with Shapoorji Pallonji and Company to acquire a 40% stake in Sterling and Wilson Solar, a solar engineering, procurement, and construction company, through a combination of primary investment, a secondary purchase, and an open offer.
Reliance New Energy Solar acquired REC Solar Holdings from China National Bluestar Group for $771 million.
Project M&A
France-based solar developer Technique Solaire acquired a 34 MW ground-mounted solar project in Uttar Pradesh from the Jakson Group and businessman Ravi Goyal.
Ayana Renewable Power signed a deal to acquire a 100% equity stake in a 250 MW solar PV project developed and operated by ACME Solar Holdings.
Virescent Renewable Energy Trust acquired a 49 MW solar portfolio from five special purpose vehicles (SPVs) of Focal Energy for ₹3.54 billion (~$46.7 million).
367 companies and investors are covered in this 131-page report, which contains 108 charts, graphs, and tables.
To learn more about Mercom’s 2021 Solar Funding and M&A Report, visit: https://mercomcapital.com/product/annual-q4-2021-solar-funding-ma-report
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About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence, and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Battery Storage/Smart Grid/Efficiency. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities, and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nVC funding
Oorja Development Solutions - an off-grid solar services provider - secured $1 million in seed funding from Schneider Electric Energy Access Asia (SEEAA).
Debt funding
Virescent Renewable Energy Trust (VRET) - a renewable energy infrastructure investment trust (InvIT) from KKR’s Virescent Infrastructure - raised ₹21.5 billion (~$288.4 million) through listed non-convertible debentures and long-term debt financing.
Project funding
The Indian Renewable Energy Development Agency (IREDA) - disbursed a loan of ~₹11 billion (~$146.4 million) to Vector Green Energy, an independent power producer focused on solar and wind energy.
CleanMax Solar - a rooftop solar developer, received $34 million in funding from the Danish Investment Fund for Developing Countries (IFU).
REC Limited, a public infrastructure finance company involved in financing power projects, signed an agreement with Germany-based KfW Development Bank to avail official development assistance (ODA) loan of $169.5 million. REC will utilize the proceeds of the ODA loan to part-finance solar generation projects in India at competitive interest rates.
Corporate M&A
Reliance New Energy Solar, the green energy arm of Reliance Industries, signed an agreement with Shapoorji Pallonji and Company to acquire a 40% stake in Sterling and Wilson Solar, a solar engineering, procurement, and construction company, through a combination of primary investment, a secondary purchase, and an open offer.
Reliance New Energy Solar acquired REC Solar Holdings from China National Bluestar Group for $771 million.
Project M&A
France-based solar developer Technique Solaire acquired a 34 MW ground-mounted solar project in Uttar Pradesh from the Jakson Group and businessman Ravi Goyal.
Ayana Renewable Power signed a deal to acquire a 100% equity stake in a 250 MW solar PV project developed and operated by ACME Solar Holdings.
Virescent Renewable Energy Trust acquired a 49 MW solar portfolio from five special purpose vehicles (SPVs) of Focal Energy for ₹3.54 billion (~$46.7 million).
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