NEW DELHI: Solar sector globally attracted corporate funding of up to $3 billion in the July-September quarter, says a report.
The sector had seen investments worth $1.7 billion in the April-June period, according to a report 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 $3 billion in 45 deals, compared to the $1.7 billion in 32 deals in Q2 2016," it said.
"Funding levels bounced back across the board 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 year-to-date. The exception has been the rebound of some of the yieldcos, he said.
Global VC funding, including private equity, for the solar sector almost doubled in the third quarter of 2016 with $342 million in 16 deals compared to the $174 million raised in the same number of deals in the second quarter of 2016.
Solar downstream companies raised $273 million in eight deals compared to $112 million in seven deals in the second quarter of 2016.
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