Total corporate financing for solar sector amounted to $16.6 billion in H1 2024

Total corporate financing, including venture capital/private equity (VC), public market and debt, totaled $16.6 billion in H1 2024, down 10% year-over-year (YoY) from $18.5 billion raised in H1 2023. The number of deals increased by 9% YoY, with 87 deals completed in H1 2024 compared to 80 in the same period last year.

“Financial activity in the solar sector remains subdued despite favorable tailwinds from the Inflation Reduction Act and favorable global policies. High interest rates, uncertain rate trajectory and timeline, rising trade barriers, supply chain challenges, concerns about the impact of the US presidential election on the sector, and constantly evolving trade policies have created an unpredictable and uncertain climate. This has slowed growth, investment, and decision-making,” said Raj Prabhu, CEO, Mercom Capital Group.

In H1 2024, VC funding activity declined 29% year-over-year to $2.7 billion raised in 29 deals compared to $3.8 billion raised in 33 deals in H1 2023. However, in Q2 2024, global VC funding activity increased 29% year-over-year (YoY) to $2.2 billion raised in 16 deals compared to $1.7 billion raised in 15 deals in Q2 2023.

Downstream photovoltaic companies completed 24 transactions worth $2.5 billion in the first half of 2024.

The largest VC deals in H1 2024 included: Pine Gate Renewables raised $650 million, Nexamp raised $520 million, Doral Renewables raised $400 million, MN8 Energy raised $325 million and ENVIRIA raised $200 million.

A total of 96 VC investors participated in financing solar energy in H1 2024.

Public solar market financings totaled $1.7 billion across eight deals in the first half of 2024, down 75% from $6.7 billion across 14 deals in the first half of 2023.

Solar debt financing activity in 1H 2024 reached $12.2 billion across 50 deals, up 53% from 1H 2023, when $8 billion was raised across 33 deals. H1 2024 was the highest total 1H amount recorded in a decade for debt financing.

In H1 2024, eight securitization transactions reached a total value of USD 2 billion, representing a 5% year-on-year increase compared to USD 1.9 billion raised in seven transactions in H1 2023.

There were 40 M&A deals in the solar sector in the first half of 2024, compared to 48 in the first half of 2023. The largest deal was by asset manager Brookfield Asset Management, together with institutional partners including Brookfield Renewable and Singapore’s Temasek Holdings, which agreed to acquire a 53.12% stake in Neoen, a developer of solar, wind and energy storage projects, for $6.54 billion.

In H1 2024, 113 photovoltaic projects with a total capacity of 18.5 GW were acquired, compared to 116 project acquisitions with a total capacity of 25.5 GW in H1 2023.

Project developers and independent power producers (IPPs) were the most active buyers of solar projects in Q2 2024, accounting for 3.4 GW, followed by other companies (insurance providers, pension funds, energy trading companies, industrial conglomerates and IT companies) with 1.6 GW. Utilities acquired a total of 1.3 GW, followed by investment firms with 1.2 GW and oil and gas companies acquiring 250 MW.

The report covers 258 companies and investors. It has 96 pages and contains 75 charts, graphs and tables.