New Delhi: Corporate funding globally in the solar sector in the third quarter (Q3) 2020 came to $3.2 billion, compared to $2.3 billion in a weak Q2, a 43 per cent increase quarter-on-quarter (q-o-q), according to a latest report.
It added that the funding was also higher by 8 per cent year-on-year (y-o-y) compared to the same quarter last year. However, it was still 13 per cent lower in the January-September period of 2020 with $7.9 billion, as compared to $9 billion raised in the same period last year.
According to the report released by Mercom Capital Group, global venture capital funding increased in Q3 2020 with $183 million in 15 deals compared to $65 million in five deals in Q2 2020, 182 per cent growth q-o-q. Whereas, funding was lower by 12 per cent y-o-y compared to $208 million raised in 11 deals in Q3 2019.
In the first nine months of 2020, venture capital (VC) funding in the solar sector was 61 per cent lower with $394 million compared to $1 billion raised in the same period last year, it said.
In Q3 2020, announced debt financing came to $1.8 billion in 16 deals, a 20 per cent increase compared to $1.5 billion from nine deals in Q2 2020. Debt financing was up by 16 per cent Y-o-y. Solar debt financing activity in the January-September period 2020 was 6 per cent lower, with $5.4 billion in 32 deals compared to the same period last year.
“Even with COVID-19 disruptions, project acquisition activity was up 52 per cent in the Jan-Sept period of 2020, with 24.3 GW of solar projects acquired, compared to 16 GW acquired in the same period last year,” the report said.
It added that 9.5 GW of solar projects were acquired in Q3 2020, 244 per cent higher compared to 2.8 GW in Q2 2020. Whereas, in a y-o-y comparison, acquisition activity was 119 per cent higher, with 4.4 GW acquired in the same quarter last year.