According to data from market research firm Mercom Capital Group, global corporate financing in the solar industry fell by 24% in 2024 compared to the previous year, with a total transaction volume of 26.3 billion.
In 2024, a total of 157 transactions were completed, slightly fewer than the 161 transactions in 2023, but still 8 billion less in value.
Compared to 2023, all the segments tracked by Mercom—venture capital (VC) and private equity financing, public market financing, debt financing, and mergers and acquisitions (M&A)—saw declines in 2024.
Debt financing fell by 6% year-on-year in 2024, from 20 billion in 2023 to 18.8 billion. In the first half of 2024, debt financing hit the highest record for any first half, reaching 12.2 billion, but it fell sharply in the second half. Global adventure capital investment in the solar industry fell even more steeply, by 364.5 billion, down from 7 billion in 70 transactions the previous year. Following closely behind were developments such as Nexamp, a U.S. community solar developer, which raised 520 million to expand its business into new markets; BrightNight, a U.S. independent power producer (IPP), received a 40 million investment from Goldman Sachsin Augustto find its five-year business plan. Doral Renewables, another U.S. IPP, obtained 400 billion to support its reserve of over 13GW of renewable energy projects.
“2024 was a year of uncertainty for the solar industry, with inflation, high interest rates, trade disputes, and ambiguous policies leading to a decline in funding and M&A activities,” said Raj Prabhu, CEO of Mercom Capital Group.
M&A activities in 2024 decreased from 96 solar transactions in 2023 to 82 last year, while 217 large-scale ground-mounted solar project acquisitions were made in 2024, down from 231 the previous year. In terms of capacity, a total of 37.7GW of PV projects were acquired in 2024, a year-on-year decrease of 17% compared to the 45.4GW of PV projects sold in 2023.
Mercom stated that project developers and independent power producers were the most active in 2024, acquiring 14.4GW of solar PV projects, followed by investment companies and infrastructure funds, which acquired 13.1GW.
“The market is awaiting clear policy signals from the new government regarding IRA terms, ITC extensions, and tariff measures before investors can come out of their wait-and-see stance and transaction activities can recover to a healthier level,” Prabhu added.
