Corporate funding in the global solar sector declined by 18 per cent year-on-year to USD 18.7 billion in January-September 2022, according to a Mercom Capital report.
Corporate funding includes venture capital and private equity (VC), debt financing, and public market financing.
"Total corporate funding in 9M 2022 (first nine months) stood at USD 18.7 billion, 18 per cent lower compared to USD 22.8 billion raised in 9M 2021. The number of deals increased 17 per cent y-o-y, with 131 in 9M 2022 compared to 112 in 9M 2021," the global clean energy consulting firm said in its report.
During January-September 2022, venture capital (VC) funding activity rose 150 per cent to USD 5.5 billion with 72 deals compared to the USD 2.2 billion raised in 39 deals in the same period last year.
In India, Navitas Alpha Renewables raised around 870,000 in seed round of funding. Renkube also secured around USD 300,000 in seed funding. While Prescinto Technologies raised USD 6.5 million in financing, Aerem raised USD 2.5 million in pre-Series A funding and Kohlberg Kravis Roberts (KKR) and the Hero Group plan to invest USD 450 million in Hero Future Energies (HFE), the renewable energy arm of the Hero Group.
Globally, the announced solar debt financing activity in the first nine months of 2022 totaled USD 8.3 billion in 48 deals, a rise of 42 per cent lower than USD 14.2 billion raised during January-September 2021 across 50 deals.
In India, Husk Power Systems, a distributed utility company that provides reliable power to rural communities and businesses entirely from renewable energy sources, signed a debt facility of USD 6 million from the EU-funded Electrification Financing Initiative.
"Corporate funding is behind pace y-o-y, impacted by inflation and high-interest rates but is still ahead compared to the previous six years. There is renewed momentum after the passing of the Inflation Reduction Act (of the US). We have seen a resurgence in VC and private equity funding, breaking funding records since 2010," said Raj Prabhu, CEO of Mercom Capital Group.