Solar debt financing activity reached $12.2 billion in 1H 2024, the highest 1H total in a decade
AUSTIN, Texas–(BUSINESS WIRE)–#1H–Mercom Capital Group, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the solar sector in the second quarter (Q2) and first half (1H) of 2024.
Total corporate funding in 1H 2024 totaled $16.6 billion, 10% lower year-over-year (YoY) compared to the $18.5 billion raised in 1H 2023. The number of deals increased 9% YoY, with 87 deals in 1H 2024 compared to 80 in 1H 2023.
CHART: Solar Corporate Funding 1H 2020–1H 2024
“Financing activity in the solar sector remains restrained despite tailwinds from the Inflation Reduction Act and favorable global policies. High interest rates, an uncertain rate trajectory and timeline, increasing trade barriers, supply chain challenges, concerns about the U.S. presidential election’s impact on the sector, and constantly evolving trade policies have created an unpredictable and uncertain climate. This has slowed down development, investments, and decision-making,” said Raj Prabhu, CEO of Mercom Capital Group.
To download the complete report, visit: https://tinyurl.com/MercomSolarQ22024
In 1H 2024, VC funding came to $2.7 billion in 29 deals. In Q2 2024, global VC totaled $2.2 billion in 16 deals.
CHART: Solar VC Funding 1H 2020-1H 2024
Solar downstream companies led financing activity with 24 deals for $2.5 billion in 1H 2024. A total of 96 VC investors participated in solar funding in 1H 2024.
Solar public market financing in 1H 2024 totaled $1.7 billion in eight deals.
Solar debt financing activity in 1H 2024 reached $12.2 billion in 50 deals, the highest 1H total recorded in a decade.
In 1H 2024, eight securitization deals totaled $2 billion.
In the first half of 2024, 40 solar M&A transactions were executed.
In 1H 2024, there were 113 solar project acquisitions totaling 18.5 GW.
CHART: Solar Project Acquirer Mix (%) Q2 2023-Q2 2024
Project developers and independent power producers (IPPs) were the most active acquirers of solar projects in Q2 2024, accounting for 3.4 GW, followed by other companies (insurance providers, pension funds, energy trading companies, industrial conglomerates, and IT firms) with 1.6 GW. Utilities acquired a total of 1.3 GW.
There were 258 companies and investors covered in this 96 page report.
Get the report: visit: https://tinyurl.com/MercomSolarQ22024
About Mercom Capital Group
Mercom Capital Group is an integrated communications, research, and media firm focused exclusively on clean energy markets in the U.S., Europe, India, and the Middle East. Our research division produces industry-leading market intelligence reports on solar, storage, smart grid, and hydrogen. Our exclusive quarterly global funding and M&A reports are the industry’s primary source for tracking funding activity in the sector. http://www.MercomCapital.com.
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Contacts
Wendy Prabhu
Mercom Capital Group
Tel: 1.512.215.4452
E-mail: [email protected]
