Solar Sector Booms with Big Corporate Funding Increase According to Mercom Capital Report

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by | Jul 18, 2023

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(Credit: Canva Pro)

According to Mercom Capital Group’s report, the solar industry experienced healthy financial activity in the first half of 2023 despite economic turbulence. The report on activity in the solar sector reveals a 54% increase in corporate funding compared to the same period last year, totaling $18.5 billion. 

Increased Financial Activity in Solar Sector

Despite facing economic setbacks, the solar industry has demonstrated robust financial activity in the first half of 2023, according to Mercom’s report. Total corporate funding, including venture capital funding, public market, and debt financing, surpassed $18.5 billion, which is up from the $12 billion raised in the first half of 2022.

While the number of deals slightly decreased by 12%, with 80 deals so far in 2023 compared to 91 in the same period last year, the solar sector remains an attractive destination for investors.

Venture Capital Funding Sparks Interest

Venture capital funding continued to play a pivotal role in driving solar sector growth, with a total of $3.8 billion raised through 33 deals in 2023. The report highlights the ongoing interest of investors in clean tech and artificial intelligence, with the solar industry emerging as one of the few sectors still attracting venture capital interest. This underscores the potential for innovative technologies to reshape the renewable energy landscape, according to the report

Among solar companies, downstream companies led the financing activity, securing 17 deals worth $2.5 billion this year. This segment’s strong performance showcases the growing importance of companies involved in the distribution and sale of solar products and services, driving the industry’s expansion.

Public market financing in the solar sector experienced significant growth, reaching a total of $6.7 billion in 14 deals. Simultaneously, solar debt financing activity surged, hitting $8 billion in 33 deals. The sustained interest in these financing options amid tightening financial conditions highlights the solar industry’s stability and appeal to investors.

Project Acquisitions

The report revealed 116 project acquisitions totaling 25.5 gigawatts of solar projects occurred during the same period. Leading the pack, project developers, and independent power producers acquired 5.5 GW, followed closely by utilities with 3.9 GW.

Mercom Capital Group’s report highlights the increased activity of the solar sector and displays the growing interest in clean tech and AI. 

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