- $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.
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