In 2021, global solar companies raised US$27.8 billion, a decade high

According to the latest data from Mercom Capital, the total financing of global solar companies (including venture capital and private equity, debt financing and public market financing) reached US$27.
8 billion in 2021, an increase of 91% year-on-year, the highest value
in a decade.

"Since 2010, 2021 was the best year
for solar corporate financing and M&A.
Financing activity rebounded
strongly after being impacted by COVID-19 in 2020.
There is more money chasing deals than ever before, and demand for attractive companies and outstrips supply," said
Raj Prabhu, Group CEO, Mercom Capital.

Global solar companies' venture capital (venture capital and private equity) reached US$4.
5 billion in 2021, up 281%
from US$1.
2 billion in 2020.
This is the highest amount of VC funding a solar company has received since 2010
.
In 2021, there were 11 venture capital transactions with a value of more than US$100 million
.

Of the $4.
5 billion in venture capital funding raised in 58 deals in 2021, $3.
9 billion (89%) went to 43 solar downstream companies
.
System Balance raised $219 million; Concentrated Solar Power raised $108 million; Solar PV raised $91 million; solar service providers raised $35 million; and Thin Film Technologies raised $18 million
.

The companies that received the most venture capital in 2021 were residential solar loan provider GoodLeap (formerly Loanpal), which raised $1.
6 billion in two separate deals worth $800 million each, followed by Silicon Ranch, which raised $775 million, Aurora Solar raised $250 million, Nexamp $240 million, and Enpal $175 million.
GameChange Solar raised $150 million
.
In 2021, a total of 154 VC and PE investors participated in financing transactions, of which 7 participated in multiple rounds of financing
.

Public market financing totaled $7.
5 billion in 2021, up 49%
from $5.
1 billion in 2020.
The largest deal was completed by Shoals Technologies Group, a supplier of BOS modules for solar projects, which raised $2.
2 billion through an IPO.

In 2021, 10 solar companies went public
through IPOs and SPACs.

In 2021, announced debt financing reached $15.
8 billion, an increase of 91%
compared to $8.
3 billion raised in 2020.
Record securitization activity was a key factor in the increase in debt financing activity in 2021, with 13 transactions reaching $3.
7 billion
.

M&A activity in the solar sector surged to 126 deals in 2021, the highest number
of deals on record.
Most deals involve solar downstream companies
.
The biggest deal of 2021 was India's Adani Green Energy (AGEL), which acquired a 100% stake
in SB Energy India at a corporate valuation of around US$3.
5 billion.

There were 280 large-scale solar project acquisitions
in 2021, compared to 231 transactions in 2020.
In 2021, more than 69 GW of projects in the sector changed hands, compared to 40 GW
in 2020.