Q1: Global solar company financing reached US$7.5 billion, up 51%

According to Mercom Capital Group's recently released Q1 2022 Solar Report, total corporate financing (including venture capital, public markets and debt financing) in the global solar industry reached US$7.
5 billion in the first quarter of 2022, involving 49 transactions
.

Compared to $5.
0 billion raised in 32 transactions in the fourth quarter of 2021, the quarter increased 51% sequentially, but decreased 7%
from the first quarter of 2021.

Raj Prabhu, Group CEO of Mercom Capital, said: "Despite strong financing activity and strong demand for solar assets, the significant headwinds that are building up could significantly slow the momentum, including ongoing supply chain issues, higher inflation and future interest rate changes
.
”

In addition, the Indian government plans to impose tariffs on solar modules imported from Malaysia, Cambodia, Thailand and Vietnam, and investment activity is likely to decline
further.

Specifically, global venture capital funding into the solar industry was $1.
2 billion in the first quarter, involving 26 deals, up 19% from $1.
0 billion in 14 deals in the same period last year and down 45%
from $2.
2 billion in 19 deals in the fourth quarter.

The companies that received the most venture capital during the quarter were: Palmetto, which raised $375 million, Aurora Solar raised $200 million, DSD Renewables raised $200 million, Aspen Power Partners raised $120 million, and PosiGen raised $100 million
.
In the first quarter, 58 venture capital and private equity investors participated in financing transactions
.

Solar public market financing activity totaled $2.
5 billion in the first quarter, up 115% sequentially and down 9%
year-over-year.
Debt financing activity of $3.
8 billion increased 137% sequentially and decreased 12%
year-over-year.

According to the report, four securitization transactions raised $1.
1 billion in the first quarter of 2022, an increase of 137%
compared to the previous quarter's two transactions raised $458 million.

In the first quarter of 2022, there were 29 solar M&A deals, down from 43 in the fourth quarter of 2021
.
Solar downstream companies lead M&A activity
.

According to the report, solar project acquisitions were the second highest recorded so far in the first quarter of 2022, with a total of 23 GW of solar projects acquired in the first quarter of 2022, compared to 13.
1 GW
in the previous quarter.
Among them, project developers and independent power producers were the most active in the quarter, acquiring more than 17 GW of projects, followed by investment companies and funds with 3.
6 GW
.

In the first quarter of 2022, 82 large-scale solar projects were acquired in 20 countries and regions
around the world.
The U.
S.
leads with a record 17 GW acquisition, followed by Spain with 1.
9 GW and the UK with more than 1 GW
.