Global venture capital (VC) investments for solar dropped 40 percent to $600 million in 97 deals in 2013 compared to $992 million in 106 deals in 2012, says a report from Mercom Capital Group.
However, total corporate funding into the solar sector encompassing VC, debt and public market financings was up 25 percent in 2013 to almost $10 billion, as against about $8 billion in 2012, the report said.
“While venture funding levels were down, overall fundraising was up and public market financings were really strong in 2013,” said Raj Prabhu, CEO of Mercom Capital Group. “Higher valuations among public solar companies have opened up the capital markets again as an avenue for fundraising at attractive terms. IPOs are back.”
Solar project acquisitions amounted to $1.7 billion in 2013, compared to $1.9 billion in 2012. Activity was up 20 percent year-over-year, with 112 transactions in 2013, compared to 80 transactions in 2012.
The report finds there is huge demand for good solar projects with sound economics. One such example is the purchase of five large-scale PV projects in England by Bluefield Solar Income Fund. The project with a total capacity of 61 MW was bought for $107 million.
Other large acquisitions, according to Mercom, is the sale of Canadian Solar Solutions’ 9 MW Brockville 2 project in Eastern Ontario and the 7 MW Burritts Rapids project in Ottawa to TransCanada Corporation for $91.9 million.