TLDR:
- Total corporate funding in the solar sector reached $16.6 billion in the first half of 2024, with most funding coming from debt financing.
- VC funding activity decreased by 29% year on year, while debt financing deals saw a 53% increase from the previous year.
Corporate funding in the solar sector reached $16.6 billion in the first half of 2024, with most of the funding coming from debt financing. This total amount was 10% lower than the funding raised in the first half of 2023. The number of deals, however, increased by 9% year on year, with a total of 87 deals recorded. VC funding activity decreased by 29% year on year, with $2.7 billion raised in 29 deals. Public market financing for solar companies fell to $1.7 billion across 8 deals, down 75% from the same period in 2023. Debt financing deals, on the other hand, increased by 53% to $12.2 billion across 50 deals, representing the highest first-half total for solar debt financing in a decade.
Despite favorable global policies, financing activity in the solar sector remains restrained due to factors like high interest rates, an uncertain rate trajectory, trade barriers, and evolving trade policies. The report by Mercom Capital Group highlighted that development, investments, and decision-making in the sector have been slowed down as a result. There were 40 solar M&A transactions in the first half of 2024, with the largest deal involving Canada’s Brookfield Asset Management acquiring a majority stake in French renewable company Neoen for over $6.5 billion.
