Mercom Capital Group recently released its annual report on funding and M&A activity for the solar sector, unveiling compelling insights into the industry’s financial landscape for 2023. The report signifies an impressive 42% year-over-year increase in total corporate funding, incorporating investments from venture capital, public markets, and debt financing.

In 2023, a remarkable $34.3 billion was raised in 160 deals, indicating a substantial surge from the $24.1 billion amassed in 175 deals the preceding year. The acquisition of nearly 45.4 GW of large-scale projects was a pivotal highlight, with project developers and independent power producers (IPPs) seizing 35% of these assets. Notably, investment firms and utilities also made significant acquisitions, accounting for 23% and 17% respectively.

Raj Prabhu, CEO of Mercom Capital Group, commented on the industry’s performance, stating, “Investments into solar continue to defy expectations.” Despite encountering high-interest rates and challenging market conditions, corporate funding reached its highest point in a decade. Alongside this, debt financing also achieved a decade high, while venture capital investments and public market financing marked the second-highest amounts since 2010. Prabhu attributed this resounding success to the impact of the Inflation Reduction Act, a global emphasis on energy security, and favorable policies worldwide, all of which have collectively contributed to the sustained attraction of significant investments into the solar sector.

This substantial influx of corporate funding underscores the resilience and attractiveness of the solar industry, despite external economic and market challenges. As the industry continues to thrive and attract substantial investments, this report serves as a testament to the sector’s enduring potential and a promising outlook for the future.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.