Solar sector attracts corporate funding worth $3 billion in Q3

Solar sector attracted corporate funding of up to USD 3 billion globally  in the July-September quarter, says a report.

The sector had seen investments worth USD 1.7 billion in the April-June period, according to a report published by clean energy communications and consulting firm, Mercom Capital Group.

"Total corporate funding, including venture capital, public market and debt financing into the solar sector in Q3 2016 was up to about USD 3 billion in 45 deals, compared to the USD 1.7 billion in 32 deals in Q2," it said.

"Funding levels bounced back compared to a weak Q2, but they are still well below last year's totals," Mercom Capital Group CEO and co-founder Raj Prabhu said.

The combination of slower than expected US demand, the overcapacity situation coming out of China, and global hyper-competitive auctions leading to lower margins has affected the entire supply chain and most of the solar equities are in the red, barring a few exceptions.

Global VC funding, including private equity, for the solar sector almost doubled in the third quarter of 2016 with USD 342 million in 16 deals compared to the USD 174 million raised in the same number of deals in the second quarter of 2016.

Solar downstream companies raised USD 273 million in eight deals compared to USD 112 million in seven deals in the second quarter of 2016.