GE, Shell Drive Frontier Solar to New Heights

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • $819 million raised by pay-as-you-go solar start-ups
  • Sustainable financing structures are work in progress

Funding rounds announced by pay-go solar companies 

Source: Bloomberg New Energy Finance

Selling solar electricity kits to frontier-market households is turning from a philanthropic activity into a VC-backed industry that uses micro-finance, data and mobile connectivity to power new customer segments. Many ventures in the sector have been started by impact investors or used development money, yet the latest fundraising rounds have involved the venture arms of energy giants. While the record financing has solved the immediate cash crunch, the sector is hungry for debt and still faces hurdles to raise it on commercial terms. With a shift from equity to debt, the sector’s credit quality will come under increasing scrutiny.

BNEF clients can see the full report, “Pay-As-You-Go Solar Approaches $1 Billion”, on the Terminal or on web.

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