Solar companies raised $12 billion in the first half of 2022, an 11% decline compared to the same period last year, according to market analysis from Mercom Capital Group.
The fundraising tally includes venture capital, public market, and debt financing. And while the total amount raised dipped year over year, the number of deals increased by 28%. Ninety-one deals were completed in the first half of 2022.
"The current state of the economy—inflation, higher interest rates, supply chain
issues—has started to impact fundraising in the solar sector," said Raj Prabhu, CEO of Mercom Capital Group. "Besides venture and private equity funding, all other areas experienced a decline in financing activity."
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Solar companies raised $3.7 billion in 53 deals from venture capital in the first half of 2022, an increase of 125% compared to last year.
Intersect Power's $750 million growth equity deal with TPG Rise Climate, with participation from existing investors, Climate Adaptive Infrastructure, and Trilantic Energy Partners North America, was the largest VC deal through June.
In 1H 2022, there were a total of 148 project acquisitions for 38 GW of solar projects compared to 136 project acquisitions totaling 40 GW in 1H 2021.
Project developers and independent power producers were the most active acquirers of solar projects in Q2 2022, picking up 4.1 GW, followed by oil and gas majors with 4 GW. Electric utilities acquired 3.4 GW of projects, and investment firms acquired 1.6 GW. Other insurance, pension funds, energy trading companies, industrial conglomerates, and IT firms acquired a total of 1.2 GW.
