 "Funding into solar sector down: Mercom Capital")
Total corporate funding — including venture capital funding, public market and debt financing — into the solar sector in the second quarter (Q2) of the calendar year 2016 fell to $1.7 billion, a 41 per cent drop compared to the $2.8 billion raised in Q1. Total corporate funding was down significantly compared to $5.9 billion in the second quarter of last year, according to the global clean energy communications and consulting firm Mercom Capital Group LLC.
Global solar venture capital funding (including private equity) saw a large decline this quarter with $174 million in 16 deals compared to $406 million in 23 deals in Q1. However, year-over-year VC numbers were slightly better compared to the second quarter 2015 with $142 million in 24 deals, it said. The firm has released its report on funding and merger and acquisition activity for the solar sector in the second quarter of 2016.
"The solar industry continues to experience weakness in terms of financing activity, and corporate funding in Q2 2016 was at its lowest level in three years," said Raj Prabhu, CEO and cofounder of Mercom Capital Group.
The largest disclosed project acquisition in Q2 was the $1.4 billion acquisition of 1,140 MW (solar 994 MW and wind 146 MW) renewable energy project pipeline of Welspun Renewables Energy by Tata Power Renewable Energy, a Tata Power subsidiary.
Mercom also tracked 196 new large-scale project announcements worldwide in Q2 2016 totaling 11.3 gigawatt.
