Mercom Capital Group, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the solar sector in Q2/16.

Total corporate funding, including venture capital funding, public market and debt financing into the solar sector in Q2/16 fell to $1.7 billion this quarter, a 41% drop compared to the $2.8 billion raised in Q1/16. Year-over-year total corporate funding was down significantly compared to $5.9 billion Q1/15.

“The solar industry continues to experience weakness in terms of financing activity, and corporate funding in Q2/16 was at its lowest level in three years,” said Raj Prabhu, CEO and co-founder of Mercom Capital Group.

Global solar VC funding (including private equity) saw a large decline this quarter with $174 million in 16 deals compared to $406 million in 23 deals in Q1/16. Year-over-year (YoY) VC numbers were slightly better compared to Q2/15 with $142 million in 24 deals.