VC/PE money poured into downstream solar in 2019.

Mercom Capital Group reported that corporate funding for solar development topped $11.7 billion in 2019. That figure represented a sharp increase of more than 20% from the previous year. The consulting firm tracked funding last year from public markets, debt financing, venture capital, and private equity.

The report indicates that VC and PE took part in 53 deals last year worth $1.4 billion. Debt financing represented the bulk of investment, comprising $7.8 billion in fundraising across 46 deals. Pubic markets provided $2.5 billion in funding.

Mercom Capital Group on VC/PE Solar Investment

The report shows 116 VC and PE investors took part in deals in 2019. At least ten companies took in multiple rounds.

VC/PE funding for solar was heavily concentrated in downstream companies. VC/PE represented 30 deals in that part of the supply chain with total funding at $1 billion. Thin-film technology companies raised $126 million from that space; PV firms raised another raised $100 million.

The top solar VC/PE funded companies in 2019 were:

• ReNew Power raised $300 million
• Hero Future Energies raised $150 million
• Avaada Energy added $144 million
• Yellow Door Energy raised $65 million
• Infinity Solar pulled in $60 million

Advancements in solar technology will continue to generate interest among the VC/PE crowd. With significant dry powder on the sidelines and a push from local, state, and federal governments on climate change, we could see a new record in 2020.

To read the report, visit here.

Related: Dealbook: Private Equity Fundraising to Drop in 2020