Total corporate funding in the global solar sector, including venture capital (VC), public market, and debt financing, dropped 24% year-on-year to $26.3 billion in 2024, according to a report by Mercom Capital Group. The funding was raised across 157 deals, compared to $34.4 billion from 161 deals in 2023. 

“2024 was a year of uncertainties for the solar industry, with inflation, high interest rates, trade disputes, and policy ambiguity contributing to declines in funding and M&A activity,” said Raj Prabhu, CEO, Mercom Capital Group. 

Global VC and private equity funding for the solar sector totaled $4.5 billion in 60 deals, a 36% decline from $7 billion in 70 deals in 2023. Of this, $3.9 billion (87%) was directed toward Solar Downstream companies, while Solar PV companies raised $401 million, BOS companies raised $117 million, Thin Film companies raised $33 million, CSP companies raised $22 million, and Service Providers raised $1 million. 

The top VC-funded companies in 2024 included Pine Gate Renewables ($650 million), Nexamp ($520 million), BrightNight ($440 million), Doral Renewables ($400 million), and MN8 Energy ($325 million). 

Public market financing dropped 59% to $3 billion in 2024, compared to $7.4 billion in 2023. Nine companies went public in 2024, raising $1.3 billion, compared to seven companies raising $2.1 billion in 2023. 

Debt financing decreased 6% to $18.8 billion in 2024, with securitization deals contributing a record $5 billion across 16 transactions. 

M&A activity fell 15% to 82 transactions in 2024, compared to 96 in 2023. The largest transaction involved Brookfield Asset Management acquiring a 53.12% stake in Neoen for $6.54 billion. Solar Downstream companies led M&A activity, acquiring 66 companies, followed by Manufacturers with six acquisitions, and Service Providers and BOS companies with five each. 

Large-scale solar project acquisitions fell to 217 in 2024 from 231 in 2023, with acquired capacity dropping 17% to 37.7 GW. Project Developers and IPPs accounted for 38% of acquisitions, followed by Investment Firms and Infrastructure Funds at 35%, and Utilities, Oil and Gas, and Installers at 14%.