Q1: Global solar companies raised US$8.1 billion, up 21% sequentially

Total corporate solar financing (including venture capital financing, public markets, and debt financing to the solar industry) reached $8.
1 billion in the first quarter of 2021, totaling 36 deals, up 21%
from $6.
7 billion in 43 transactions in the fourth quarter of 2020.

The increase in corporate funding was primarily due to higher debt and higher public market financing activity in the first quarter of 2021
.

Raj Prabhu, CEO of Mercom Capital Group, said, "Financing activity in the solar sector started strongly in 2021, with a significant year-on-year
increase in transaction volume in the first quarter.
Despite unprecedented declines in solar stocks in 2020, large IPOs and record securitization activity boosted overall fundraising totals
.
”

In the first quarter of 2021, the largest funding round was $2.
2 billion raised by Shoals Technologies Group through its IPO
.
In addition, Enphase Energy raised $1.
1 billion and Loanpal raised $800 million; Intersect Power raised $482 million; Loanpal raised $390 million securitization and Sunrun raised $389 million
.

In the first quarter of 2021, venture capital funding in the global solar industry reached 14 transactions totaling $1 billion, up 33%
from $773 million raised on 12 exchanges in the fourth quarter of 2020.

Of that, 96% went to solar downstream companies, with 10 deals worth $990 million
.
In the fourth quarter of 2020, solar downstream companies raised $748 million through six transactions (97% of total venture capital raised in the quarter).

The companies that received the most VC/PE funding in the first quarter of 2021 were: Loanpal raised $800 million; Intersect Power brought in $127 million, Daystar brought in $38 million, and Tigo Energy raised $20 million
.

In public market financing, there was a slight decline in the first quarter, totaling eight deals raising $2.
8 billion, down 7%
from $3.
0 billion raised from 17 transactions in the fourth quarter of 2020.
Two IPOs
were announced during the quarter.

In debt financing, 14 transactions raised $4.
3 billion in the first quarter, up 48%
from $2.
9 billion raised from 14 transactions in the fourth quarter of 2020.

Five securitization transactions totaling US$1.
4 billion were recorded in the first quarter of 2021, the largest amount raised through securitization since 2013
.

In addition, there were 20 solar M&A deals globally in the first quarter of this year, compared to 12 in the first quarter of 2020
.
Of the 20 solar M&A deals announced in the first quarter of 2021, 15 involved solar downstream companies, followed by three System Balancing (BOS) companies
.

In the first quarter of this year, solar project acquisitions spread across 26 countries and regions around the world, of which Spain ranked first with a recorded M&A transaction volume of 5.
5 GW, followed by the United States with 4.
8 GW and Greece with 1.
6 GW
.

The biggest acquisition of the quarter was oil and gas specialist Total, which acquired the development pipeline
for a 2.
2 GW solar project in Texas from SunChase Power and MAP RE/ES.