Corporate funding for solar projects stagnates in H1 this year

Investors did not seem to loosen their purse strings when it comes to solar power, as is evident from the total corporate funding in the first half of this year as compared to last year, though the number of deals did rise.

The total funding, including venture capital funding, public market and debt financing, stood at $4.6 billion for January-June 2017 as against $4.5 billion in the corresponding period last year, while the number of deals rose to 97 from 79, according to Mercom Capital Group.

In an update released on Wednesday, the consultancy firm that tracks clean energy and investments therein, said the three-month period ended June this year was weak compared to the first three months. 

For the June quarter, corporate funding plunged to $1.4 billion for 37 deals compared to $3.2 billion raised in 60 deals for the March 2017 quarter. 

"There is a great deal of uncertainty in the solar markets right now, which is reflected in funding activity. However, solar public companies, especially on the US stock markets, have done well this year. A lot is riding on how the Suniva anti-dumping case plays out as it will dictate market dynamics going forward," Raj Prabhu, the CEO of Mercom Capital Group, said in a statement.

Some of the top deals funded by VCs included $200 million raised by ReNew Power Ventures, $155 million by Greenko Energy Holdings and $125 million by Hero Future Energies.

Debt financing was marginally lower at $3 billion this year compared to $3.7 billion for the first six months last year, according to Mercom Capital Group.