Solar finance has entered a new decade riding a wave of corporate attention and upbeat stats but must pick up the pace in the coming years if the world is to avoid destructive global heating, according to global experts.
Mercom Capital Group’s latest annual update shows solar projects raised US$11.7 billion from private sector sources worldwide throughout 2019, a 20% jump on the US$9.7 billion secured the year prior.
The consultancy linked last year’s “strong” figures to the renewed solar appetites of private equity and venture capital investors, who went from pumping US$1.3 billion (65 transactions all in all) into the industry in 2018 to deploying US$1.4 billion (53 transactions) in 2019.
According to Mercom, the year-on-year boost was even more marked in the debt segment, with funding volumes rising 29% between 2018 (US$6 billion, 53 deals) and 2019 (US$7.8 billion, 46 deals). In particular, 2019’s US$1.6 billion of solar securitisation deals marks a record, the firm said.
Last year’s funding bonanza extended to stock exchanges – Mercom recorded six solar IPOs between January and December – and project acquisitions, with a 26GW large-scale solar pipeline sold off where 29GW changed hands in 2018.