Global corporate solar funding in H1/2024 dropped by 10% YoY to $16.6 billion
VC funding declined from $3.8 billion last year to $2.7 billion, led by solar downstream companies
Solar debt financing improved 53% annually to $12.2 billion, making it the highest H1 total recorded in a decade in this category
Mercom Capital Group blames ‘unpredictable and uncertain’ trade and policy climate for the 10% Year-over-Year (YoY) drop in total corporate funding for solar PV in H1/2024. Compared to last year’s $18.5 billion, the market raised a total $16.6 billion in the 1st half of 2024.
In its latest report on global solar funding, Mercom counts the number of deals to have gone up by 9% YoY to 87, compared to 80 last year.
For venture capital (VC) funding, 29 deals raised $2.7 billion this year, down from $3.8 billion in H1/2023. Solar downstream companies accounted for 24 deals worth $2.5 billion. There was a significant jump of 24% YoY in Q2/2024 with $2.2 billion raised. Pine Gate Renewables’ $650 million was the top VC deal during the period.
Solar public market financing totaled $1.7 billion in 8 deals as compared to $6.7 billion reported in H1/2023.
Solar debt financing of $12.2 billion in 50 deals represented strong annual growth of 53% over $8 billion last year. In fact, Mercom counts this as the highest H1 total recorded in a decade for debt financing.
With a 5% YoY increase to $2 billion, 8 securitization deals were signed, up from $1.9 billion in 7 deals a year ago.
In terms of solar mergers and acquisitions (M&A), 40 transactions in the 1st half of 2024 were led by Brookfield Asset Management and its institutional partners when it acquired a 53.12% stake in French developer Neoen for $6.54 billion (see France’s Neoen Attracts Global Investment Group).
In all, Mercom’s report counts 113 project acquisitions during the reporting period representing a combined 18.5 GW, down from the 25.5 GW of capacity exchanging hands in H1/2023. Most of the acquisition activity was reported by project developers and independent power producers (IPP) in Q2 of this year.
“Financing activity in the solar sector remains restrained despite tailwinds from the Inflation Reduction Act and favorable global policies,” said CEO of Mercom Capital Group, Raj Prabhu.
He blames high interest rates, an uncertain rate trajectory and timeline, increasing trade barriers, supply chain challenges, concerns about the US presidential election’s impact on the sector, and constantly evolving trade policies to have played their part. This has slowed down development, investments, and decision-making, according to Prabhu.
Mercom’s 1H and Q2 2024 Solar Funding and M&A Report can be purchased from its website with prices starting from $299.