Mercom Capital’s new report counts $22.3 billion as the total corporate funding for solar in 9M 2024, down 23% YoY
Regulatory concerns and election outcome uncertainty in the US, supply chain disruptions, and unpredictable global trade policies have dampened investor confidence
More clarity is needed by the market as well as a direction on future rate cuts to boost investment
Global solar PV market intelligence firm Mercom Capital Group seeks more clarity and direction for the global solar PV market as total corporate funding for this industry dropped 23% year-on-year (YoY) to $22.3 billion during 9M 2024.
Compared to 124 deals raising $28.9 billion in 9M 2023, analysts count a 6% YoY decline this year with 117 deals, for which Mercom blames significant uncertainties in the global PV market, especially during Q3 2024 (see Solar Industry Financing Robust During 9M/2023).
Mercom CEO Raj Prabhu listed these uncertainties as, “Regulatory concerns around antidumping and countervailing duties and tariffs, the U.S. Section 45X guidance, potential policy shifts due to election outcomes, unpredictable global trade policies, supply chain disruptions, higher costs, tight labor markets, and ongoing project delays have all dampened investor confidence and delayed key investment decisions.”
In Mercom’s latest 9M and Q3 2024 Solar Funding and M&A Report, Prabhu added, “While the recent 50 basis points rate cut is hopeful, the market needs more clarity and direction on future rate cuts to spark a resurgence in investment momentum.”
During the 9M 2024 reporting period, venture capital (VC) funding declined 39% YoY to $3.5 billion in 39 deals, with downstream companies attracting 32 deals worth $3.3 billion. Pinegate Renewables raising $650 million from Generate Capital tops the list.
In terms of public market financing, the $2.1 billion raised in 10 deals was 71% lower than the $7.2 billion reported during 9M 2023.
Another $16.7 billion in 68 deals was reported as total solar debt financing activity during the reporting period. This represents a YoY improvement of 4%.
There were 12 securitization deals that totaled $3.8 billion, representing a 19% YoY increase over the $3.2 billion raised during the same time last year.
Of the 62 solar merger and acquisition (M&A) transactions this year, the largest was the minority stake acquisition in D.E. Shaw Renewable Investments by Macquarie Asset Management. The deal was worth $1.72 billion (see Macquarie Group To Invest Over $1.72 Billion In US Renewables Developer).
Overall, 28.3 GW of capacity changed hands, down from 31.6 GW in 9M 2023. With 4.3 GW, investment firms were on top of the list as the active procurers, followed by 3.4 GW acquired by project developers and independent power producers (IPP). Utilities came next with 1.2 GW, while insurance providers, pension funds, energy trading companies, industrial conglomerates and IT firms invested in 882 MW in 9M 2024.
The complete report can be purchased from Mercom Capital’s website with prices starting from $299.
According to a recent International Renewable Energy Agency (IRENA) report, for the world to achieve the tripling of renewable energy target of 11.2 TW by 2030, the industry will require $1.5 trillion/year in investment between 2024 and 2030. Solar PV is the only technology that’s on track to achieve the targeted 5.5 TW, and the annual investments in this market are on track to meet the $397 billion required each year until 2030 (see Tripling Renewables By 2030 Requires $1.5 Trillion Investment/Year).