Solar Sector Sees $8.1 Billion in Corporate Funding in Q1 2024, Reports Mercom Capital Group
April 19 2024 - 9:00AM
Business Wire
10.8 GW of solar projects were acquired in Q1
2024
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 global solar sector in the
first quarter of 2024.
Total corporate funding into the solar sector in Q1 2024 came to
$8.1 billion in 41 deals, a 4% decline year-over-year (YoY)
compared to the $8.4 billion raised in 42 deals in Q1 2023. Funding
increased 47% quarter-over-quarter (QoQ) compared to the $5.5
billion raised in 37 deals in Q4 2023.
CHART: Solar Corporate Funding Q1 2023 – Q1 2024
"The solar sector is experiencing peak uncertainty and a
challenging investment climate. The sector is grappling with
multiple hurdles, including the likelihood of prolonged
high-interest rates, higher labor and construction costs due to
inflation, and supply chain issues, coupled with trade disputes and
tariffs," commented Raj Prabhu, CEO of Mercom Capital Group.
"Although a crash in Chinese module prices has spurred demand, it
has made investments in manufacturing projects unattractive, even
with incentives. VC investments were down, and M&A activity
continues to be subdued. Given the current market conditions, it
wouldn't be surprising if the recovery is delayed further in
conjunction with rate cuts."
Global VC funding for the solar sector in Q1 2024 came to $406
million in 13 deals. A total of 36 investors participated in Q1
2024.
CHART: Solar Top VC Funded Companies in Q1 2024
The top VC-funded companies in Q1 2024 were: ENVIRIA, which
raised $200 million. Of the $406 million in VC funding raised in 13
deals during Q1 2024, 70% went to solar downstream companies, with
$283 million in 10 deals.
Public market financing in the solar sector totaled $1.4 billion
in six deals in Q1 2024 compared to $2.3 billion in seven deals in
Q1 2023.
Announced debt financing for the solar sector in Q1 2024 totaled
$6.2 billion in 22 deals, compared to $3.9 billion in 17 deals in
Q1 2023.
CHART: Solar Project Acquisitions Q1 2023 – Q1 2024 (By
GW)
A total of 21 solar M&A transactions were recorded in Q1
2024. Solar project acquisitions in Q1 2024 totaled 10.8 GW.
CHART: Solar Project Acquirer Mix (%) Q1 2023 – Q1
2024
Investment firms and funds were the most active acquirers in Q1
2024, acquiring over 4.4 GW of projects.
A total of 274 companies and investors are covered in this
97-page report, which contains 66 charts, graphs, and tables.
Get the report:
https://mercomcapital.com/product/q1-2024-solar-funding-ma-report/
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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Wendy Prabhu Mercom Capital Group Tel: 1.512.215.4452
E-mail: media@mercomcapital.com