Gross transacted C&I/rooftop solar capacity more than doubles y/y in 2022

As we come to a close on 2022, the Enerdatics research team has been analyzing key trends that have defined the year’s mergers & acquisitions (M&) landscape. Over the past few weeks, our team has identified several themes that are characteristic of the global energy transition in 2022, such as a sharp spike in offshore wind partnerships and a surge in private equity (PE)-backed acquisitions of energy storage assets. Our latest analysis is focussed on the solar sector and explores the different types of installations that have come to the forefront as acquisition targets, driven by interesting disruptions in the segment. The analysis has been published on the attached slide, the highlights of which are:

– Global transacted solar capacity increased by 69% y/y in 2022, with the surge in acquired utility-scale capacity being eclipsed by a 2X rise in the acquired commercial & industrial (C&I), rooftop, and community solar capacity, for the first time since 2017

– The surge was driven by the highest number of gigawatt-scale JVs for C&I and community solar assets seen in 2022, as PE firms and PE-backed companies sought to acquire large development pipelines of assets

– While the cumulative enterprise value of the transacted solar assets grew by just ~14% y/y to nearly $40bn in 2022, the value of C&I/community solar assets grew by more than 2X in 2022 to account for nearly a 25% share of total solar deal value

– The surge was driven by the highest number of $1bn+ deals for C&I assets that were announced in 2022, with Brookfield Asset Management, Macquarie Group, and Ardian leading the pool of big-ticket corporate consolidations during the year

– The cost savings for C&I customers in developing economies such as India, Brazil, and Kenya, coupled with policy incentives and tax benefits in developed countries including the US, France, and the UK, are driving deal activity

– While the US and Western Europe continue to occupy the largest share of solar C&I deals, transacted capacity in Asia and Africa has surged more to more than 10X the value y/y in 2022

– Enerdatics believes that this growth is representative of the forecasted rise in developing economies' energy demand, and expects the Asian market to rival Europe in the next 5 years

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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