Total corporate funding in the solar sector in the January-March quarter of this year stood at USD 2.8 billion (over Rs 18,000 crore) globally, registering a decline of 56 per cent over last year, says a report.
Total corporate funding, including venture capital funding, public market and debt financing, in the first quarter of 2015 stood at USD 6.4 billion by way of 64 deals.
"It's a tough environment out there. Solar public companies in general have had a difficult time raising capital at depressed market valuations," Mercom Capital Group CEO Raj Prabhu said.
Notable Indian transactions in the first quarter of this year include, ReNew Power Ventures' debt financing of up to USD 250 million from Overseas Private Investment Corporation (OPIC) to construct up to 400 MW of new solar power projects in India across multiple states.
Other major Indian deals in project funding category include Brightsolar Renewable Energy, a SPV set up by Mahindra Susten to develop a 10 MW solar project in Andhra Pradesh, that raised a USD 9.6 million loan from Yes Bank and Union Bank of India.
Moreover, P2 Solar, a solar project developer, also received equity financing from a London-based fund for its 5 MW solar PV project. The equity amount was undisclosed.
In the VC funding category, Zolt Energy, a solar rooftop installer, raised an undisclosed seed funding from seven angel investors.
Global VC funding for the solar sector came in at USD 406 million in 23 deals compared to USD 457 million raised in 17 deals in fourth quarter of 2015.
Year-over-year, VC funding was up compared to January-March 2015 when USD 195 million went into 27 deals, the report added.
