According to Mercom Capital Group, corporate financing in the solar sector reached $16.6 billion in the first half of this year. It is said that most of the financing came through debt financing as venture capital and public market financing declined.
Total corporate financing in the solar sector reached $16.6 billion in the first half of 2024, according to data released by Mercom Capital Group in its latest solar financing and mergers and acquisitions (M&A) report.
The total figure, including venture capital/private equity financing, public market and debt financing, is 10% lower year-on-year than the $18.5 billion raised in the first half of 2023. However, the number of deals increased by 9% year-on-year. with 87 deals registered in the first half of 2024, compared to 80 deals in the same period last year.
Venture capital financing activity fell 29% year-on-year in the first half of 2024, with $2.7 billion raised across 29 deals. Public solar market financing reached $1.7 billion through eight deals in the first half of 2024, down 75% from $6.7 billion in 14 deals in the first half of 2023.
Solar companies raised $12.2 billion through 50 debt financing deals in the first half of 2024, up 53% from the $8 billion raised across 33 deals in the first six months of 2023. According to Mercom Capital Group, this period represented the highest first half of 2023. -half of the solar debt financing total in ten years.
“Finance activity in the solar sector remains subdued despite tailwinds from the Inflation Reduction Act and favorable global policies,” said Raj Prabhu, CEO of Mercom Capital Group.
Prabhu added that high interest rates, an uncertain interest rate path and timeline, rising trade barriers, supply chain challenges, concerns over the impact of the US presidential election on the sector and ever-evolving trade policies have created an “unpredictable and uncertain environment… This has delay development, investments and decision-making.”
There were 40 solar mergers and acquisitions in the first half of this year, up from 48 in the same period in 2023. The largest deal involved the acquisition of a company by Canada’s Brookfield Asset Management. majority interest in the French sustainable company Neoen for more than $6.5 billion.
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