Mercom Capital Group, an integrated communications and research firm focused exclusively on clean energy, released its annual report on funding and merger and acquisition (M&A) activity for the solar sector in 2024.
Total corporate funding, including venture capital (VC) funding, public market, and debt financing into the solar sector, decreased 24% year-over-year (YoY) in 2024, with $26.3 billion in 157 deals compared to $34.4 billion in 161 deals in 2023.
CHART: Solar Corporate Funding 2010-2024
“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. The market is awaiting clear policy signals from the new administration on the IRA provisions, ITC extensions, and tariff measures before investors come off the sidelines and deal-making can return to healthier levels,” commented Raj Prabhu, CEO of Mercom Capital Group.
Global VC and private equity funding in solar in 2024 came to $4.5 billion. There were 14 VC funding deals of $100 million or more in 2024; 87% went to Solar Downstream companies.
CHART: Solar VC Funding 2010-2024
CHART: Solar Top VC Funded Companies in 2024
The top VC-funded deals in 2024 were - Pine Gate Renewables ($650 million), Nexamp ($520 million), BrightNight ($440 million), Doral Renewables ($400 million), and MN8 Energy ($325 million).
Solar public market financing in 2024 totaled $3 billion. Nine companies went public in 2024, bringing in $1.3 billion.
Announced debt financing came to $18.8 billion in 2024. Securitization deals were a key contributor, with a record $5 billion in 16 deals.
In 2024, 82 corporate M&A transactions were executed.
CHART: Solar Top Disclosed M&A Transactions in 2024
Solar Downstream companies led corporate M&A activity in 2024.
There were 217 large-scale solar project acquisitions in 2024, totaling 37.7 GW.
CHART: Solar Large-scale Project Acquisitions 2010-2024 (By GW)
Of the 37.7 GW of large-scale solar projects acquired in 2024, 38% were acquired by Project Developers and IPPs. Investment Firms and Infrastructure Funds acquired 35%. Utilities, Oil and Gas, and Installers acquired 14%.
