L R AS Published on Monday 20 April 2020 - n° 318 - Categories:funding
Funding for solar energy is being drastically reduced
Using figures from Mercom Capital (31% decline in business financing in the first quarter), GlobalData draws some interesting conclusions:
The pandemic has the effect of reducing venture capital investments and public market financing, and therefore cash flow. Between January and March of this year,
Total corporate financing in the photovoltaic solar energy sector amounted to $1.9 billion, covering 17 transactions. This is 31% less than last year's $2.8 billion. In addition, global venture capital financing in the solar PV sector amounted to $145 million in the first quarter, significantly less than the $350 million in the fourth quarter of 2019.
He added : Most major economies are being forced to close their doors. Activity in the solar photovoltaic market is minimal. Even public market financing has fallen sharply: only $22 million has been recorded on the public markets in the last three months (-91%).
The worst may still be to come, but professionals in the solar photovoltaic sector hope that activity will pick up again in the second half of the year.
Tecsol of 19 April
Editor's note The figures are striking and indisputable. However, we would need to distinguish between January (a month that can be considered normal) and March (the month when the epidemic affected all countries).
