Corporate funding in the solar sector declined sharply in 2024, totaling $26.3 billion, according to Mercom Capital Group’s annual solar funding and M&A report. This represents a 24% drop from $34.3 billion in 2023, encompassing 157 deals, down from 161 the previous year.
Key findings include:
Venture Capital Funding: Dropped 36% to $4.5 billion, with 87% ($3.9 billion) allocated to 48 solar downstream companies. Top recipients included Pine Gate Renewables ($650 million) and Nexamp ($520 million).
Public Market Financing: Fell 59% year-on-year, reaching $3 billion. Nine companies went public, raising $1.3 billion, compared to $2.1 billion raised by seven companies in 2023.
Debt Financing: Announced deals totaled $18.8 billion, a 6% decline, despite a record $5 billion in securitization sales.
“Uncertainty from inflation, high interest rates, trade disputes, and ambiguous policies significantly impacted solar funding and M&A activity in 2024,” said Raj Prabhu, CEO of Mercom Capital Group. He noted that investors are awaiting clearer policy signals on IRA provisions, ITC extensions, and tariffs for a rebound in deal-making.
M&A activity also slowed, with 82 transactions in 2024 compared to 96 in 2023—a 15% decline. The largest deal was Brookfield Asset Management’s acquisition of a 53.12% stake in Neoen for $6.54 billion.
Large-scale solar project acquisitions fell to 217, down from 231 in 2023, with acquired capacity decreasing by 17% to 37.3 GW.
However, large-scale project funding bucked the trend, increasing by 21% to $53.8 billion in 2024, indicating sustained interest in project development despite broader market challenges.
