Hard times in corporate funding for solar during Q1

Solar funding is an environment where there is never a dull moment. While the global solar market has grown every year, this simple metric has masked rapid shifts in geography and finance activity. Q1 2016 was no exception, as detailed in Mercom Capital's latest Solar Funding and M&A report, which came out today. Overall corporate funding in the sector fell more than 50% on both a quarter-over-quarter and year-over-year basis to $2.8 billion. Debt financing declined to its lowest level since Q4 2014 at only $2.3 billion. More severe was the collapse in public market financing to only $94 million in four deals, a fraction of the money raised in previous quarters. During Q1 there were no initial public offerings (IPOs), compared to three during Q4 2015. This mirrors a fall in stock prices, which have been down since last spring and are hitting new lows. "Solar public companies in general have had a difficult time raising capital at depressed market valuations," notes Mercom CEO Raj Prabhu. "Yieldcos, which accounted for significant financial activity in the ...

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