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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