Total corporate funding stood at $17.3 billion in 9M 2025
Venture capital investments totaled $2.9 billion in 55 deals
Debt financing recorded $12.7 billion across 60 deals
After a subdued start to the year, the global solar financing landscape saw a notable recovery in the third quarter of 2025. According to Mercom Capital Group’s latest Solar Funding and M&A Report, corporate funding rose in Q3, yet total investments for the first 9 months stood below last year’s numbers. This reflects an industry finding its balance amid shifting policy dynamics.
Between January and September 2025, total corporate funding, including venture capital (VC), public market, and debt financing, stood at $17.3 billion, marking a 22% decline compared to $22.3 billion in the same period of 2024.
However, the third quarter looked more optimistic. The sector raised $6.5 billion across 49 deals, a 38% year-on-year increase from $4.7 billion in Q3 2024 and an 8% rise quarter-on-quarter from Q2 2025.
In total, 127 corporate funding deals were recorded in 9M 2025, up from 117 deals during the previous year – an indicator that investor confidence is returning even as deal sizes remain conservative.
“Corporate funding and M&A activity in the first 9 months of 2025 reflected an industry recalibrating to new policies and market realities,” said Raj Prabhu, CEO of Mercom Capital Group.
“After a sluggish first half marked by policy uncertainty, financing activity surged in the third quarter as the market gained clarity around the OBBB. At the same time, M&A accelerated as developers and manufacturers consolidated assets, capacity, and supply chains while project M&A also remained strong, buoyed by renewed confidence due to certainty around policy direction,” he added.
Venture capital investments softened during the first 9 months, totaling $2.9 billion in 55 deals, down 17% year-over-year from $3.5 billion in 39 deals in 9M 2024.
Solar downstream companies dominated VC financing with 40 deals worth $2.5 billion. The 5 largest VC transactions included:
Origis Energy – $1 billion
Silicon Ranch Corporation – $500 million
Terabase Energy – $130 million
Enpal GmbH – $129 million
Aukera – $124 million
In total, 161 investors participated in VC funding rounds through the period, highlighting ongoing interest in solar innovation despite tighter investment conditions.
Debt financing recorded $12.7 billion across 60 deals in 9M 2025, 24% lower than the $16.7 billion through 68 deals reported in 9M 2024.
Public market financing also dipped, with $1.7 billion raised through 12 transactions, compared to $2.1 billion in 10 deals during 9M 2024.
Securitization activity saw a similar slowdown, totalling $3.1 billion in 7 deals, down from $3.8 billion across 12 deals last year.
Even as financing tightened, mergers and acquisitions (M&A) picked up pace. Mercom recorded 76 solar M&A deals in the first 9 months of 2025, up from 62 deals a year earlier.
The largest transaction of the period was the $2.3 billion acquisition of Ayana Renewable Power by ONGC NTPC Green (ONGPL) - a joint venture between ONGC Green and NTPC Green Energy.
Project-level M&A activity also remained healthy, with 165 solar projects totaling 29 GW changing hands in 9M 2025 – slightly below 166 project acquisitions totaling 28.3 GW recorded in 2024.
Key acquirers in Q3 2025 included:
Project developers and IPPs: 5.4 GW
Investment firms: 1.7 GW
Insurance, pension, trading, and IT companies: 1.1 GW
Oil & Gas firms: 623 MW
Utilities: 320 MW
While total funding for 2025 remains below 2024 levels, the rebound in Q3 suggests a more confident market outlook heading into the final quarter. Consolidation trends, increasing project-level acquisitions, and easing policy uncertainty could further stabilize financing activity.
The report, covering 303 companies and investors, with 86 charts and tables across 108 pages, paints a clear picture of an industry adapting to new market conditions while maintaining its long-term growth trajectory.
