Global corp solar funding slips to USD 16.6bn in H1 2024

Total corporate funding in the global solar sector, including venture capital (VC), public market and debt financing deals, came at USD 16.6 billion (EUR 15.25bn) in the first half of 2024, registering a 10% year-on-year drop.

The data was released in the latest Solar Funding and M&A report of consulting firm Mercom Capital Group, which contains figures from 258 companies and investors. According to the statistics, the number of deals was higher than in the year-ago period, with 87 transactions recorded in January-June 2024, against 80 a year earlier.

"Financing activity in the solar sector remains restrained despite tailwinds from the Inflation Reduction Act and favorable global policies,” said Raj Prabhu, CEO of Mercom Capital Group.

He explained that the sector’s activity is hampered by the high interest rates, trade barriers, supply chain woes and the US presidential elections, which slowed down development, investments, and decision-making.

Global VC funding in January-June declined by 29% in annual terms to USD 2.7 billion raised in 29 deals. The bulk of the funding came from solar downstream companies, which reported 24 deals worth a combined USD 2.5 billion. Among the top investments was the USD-650-million raising by Pine Gate Renewables, a US developer and owner of solar and energy storage projects, followed by Nexamp’s capital raise of USD 520 million. The third largest deal was recorded in June, when Doral Renewables LLC attracted a USD-400-million minority equity investment to accelerate the development and construction of its pipeline.

Solar public market financing in the six months amounted to USD 1.7 billion, raised in eight deals and falling 75% from a year before. Meanwhile, solar debt financing activity jumped by 53% to USD 12.2 billion and reached the highest six-month level in a decade.

Mergers and acquisitions (M&A) activity staggered, with only 40 deals reported, against 48 in the first half of 2023. Projects totalling 18.5 GW changed their owners after 113 solar project acquisitions were booked, compared to 116 deals totalling 25.5 GW in the year-ago period. Project developers and independent power producers (IPPs) accounted for 3.4 GW of the overall M&A activity in the second quarter.

(USD 1.0 = EUR 0.919)

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