Corporate financing in the solar sector fell by $6.6 billion in the first nine months of 2024 compared to the same period in 2023, according to clean energy research firm Mercom Capital Partners. By the end of September, total global corporate funding for the sector stood at $22.3 billion, down from $28.9 billion the previous year.
Mercom highlighted a 6% decrease in the number of deals, with 117 deals completed this year, compared to 124 in 2023. The research firm focuses on markets in the U.S., Europe, India, and the Middle East.
Debt financing was the only segment to see year-on-year (YoY) growth, with $16.7 billion raised, up $700 million from 2023. The number of deals also rose to 68, up from 54 last year. However, this growth has slowed significantly compared to the sharp rise in debt financing seen in 2023.
Other key segments, including Venture Capital (VC) funding, Public Market funding, and Mergers & Acquisitions (M&A) financing, all saw declines. VC funding totaled $3.5 billion in 39 deals, down from $5.5 billion in 51 deals last year. U.S.-based Pine Gate Renewables secured the largest VC funding, raising $650 million from Generate Capital.
Public market financing dropped sharply to $2.1 billion in 10 deals, down from $7.2 billion in 19 deals in 2023. M&A transactions also fell, with 62 deals completed, compared to 75 in the first nine months of last year.
Despite the drop in corporate financing, Mercom noted that 166 solar project acquisitions occurred in 2024, representing 28.3 GW of capacity. Investment firms were the most active acquirers in the third quarter.
Mercom CEO Raj Prabhu cited “significant uncertainties” as the primary cause of the decline in investment, including regulatory issues, supply chain disruptions, and policy concerns. “The market needs more clarity and direction on future rate cuts to spark a resurgence in investment momentum,” Prabhu said.
