Solar Companies Raise $34.3 Billion in Corporate Funding in 2023, the Largest Amount in a Decade, Reports Mercom Capital Group


Virtually 45.4 GW of photo voltaic tasks have been acquired by 2023

AUSTIN, Texas – January 17, 2024 – Mercom Capital Group, a world clear vitality communications and consulting agency, launched its annual report on financing and merger and acquisition (M&A) exercise for the photo voltaic sector on 2023.

Complete company funding, together with enterprise capital (VC) funding, public market, and debt financing within the photo voltaic sector, elevated 42% year-over-year (YoY) in 2023, with $34.3 billion raised in 160 offers, in comparison with $24.1 billion in 175 offers by 2022. That is the biggest quantity raised in additional than a decade.

To be taught extra about Mercom’s 2023 Photo voltaic Funding and M&A Report, go to: https://mercomcapital.com/product/annual-q4-2023-solar-funding-ma-report

“Photo voltaic investments proceed to defy expectations. Regardless of excessive rates of interest and difficult market situations, company financing within the sector is the very best in a decade. Debt financing has additionally hit a decade excessive, and enterprise capital funding and public market financing recorded the second-highest quantity since 2010. Pushed by the Inflation Discount Act, the worldwide deal with vitality safety, and favorable insurance policies in globally, photo voltaic continues to draw important investments,” stated Raj Prabhu, CEO of Mercom Capital Group.

International VC and personal fairness funding within the photo voltaic sector in 2023 has been stable with $6.9 billion, simply 1% lower than the $7 billion raised in 2022. There have been 26 VC funding offers of $100 million or extra by 2023.

Of the $6.9 billion in VC funding raised in 69 offers by 2023, $4.7 billion (68%) went to 42 Photo voltaic Downstream firms. Photo voltaic PV firms raised $1.9 billion; Steadiness of System (BOS) firms raised $311 million; and Service Suppliers raised $32 million.

The highest VC-funded firms in 2023 are 1KOMMA5° ($471 million), Enfinity International ($428 million), Silicon Ranch ($375 million), CleanMax Photo voltaic ($360 million) and Juniper Inexperienced Power ($350 million)

Public market financing in 2023 totaled $7.4 billion, 45% greater than $5.1 billion in 2022.
In 2023, introduced debt financing reached $20 billion, 67% greater in comparison with $12 billion in 2022 and the very best quantity raised since 2010. Securitization exercise is a crucial contribution, with $3.4 billion in 11 offers.

M&A exercise decreased by 25% YoY with 96 company M&A transactions in 2023 in comparison with 128 in 2022. The biggest transaction was Brookfield Renewable, which agreed to accumulate Duke Power’s unregulated utility-scale industrial renewables US enterprise of roughly $2.8 billion.

“Whereas financing exercise is powerful, macroeconomic and geopolitical uncertainty, recession considerations, and rising rates of interest additional dampen enterprise exercise and M&A tasks in 2023,” stated stated Prabhu. “Greater borrowing prices put a damper on M&A transactions, with cautious buyers biding their time for extra favorable valuations. Photo voltaic tasks proceed to draw of curiosity, however excessive valuations and a low threat urge for food, compounded by unpredictable mission completion timelines on account of interconnection delays, labor shortages, and part shortages, the all contributed to a drop-off in mission M&A exercise,” Prabhu defined.

Photo voltaic Downstream firms led company M&A exercise in 2023, buying 84 photo voltaic firms, adopted by Producers with 5, Service Suppliers with 4, and Steadiness of System firms (BOS ) with three acquisitions.

There have been 231 main photo voltaic mission acquisitions in 2023 in comparison with 268 acquisitions in 2022. In 2023, practically 45.4 GW of photo voltaic tasks have been acquired in 2023, in comparison with 66 GW in 2022 which is a 31% lower YoY.

Virtually 45.4 GW of large-scale photo voltaic tasks have been acquired by 2023, with 35% of the entire acquired by Mission Builders and IPPs. Funding Corporations gained 23%, adopted by Utilities with a 17% acquire.

2 hundred and fifty firms and buyers are lined on this 127-page report, which accommodates 103 charts, graphs, and tables.

To be taught extra about Mercom’s 2023 Photo voltaic Funding and M&A Report, go to: https://mercomcapital.com/product/annual-q4-2023-solar-funding-ma-report

About Mercom Capital Group
Mercom Capital Group is an built-in communications, analysis, and media firm centered completely on the clear vitality market within the US, Europe, India, and the Center East. Our communications division helps clear vitality firms construct robust relationships with the media, analysts, authorities resolution makers, native communities, and strategic companions. Our analysis division produces industry-leading market intelligence stories on photo voltaic, storage, sensible grid, and hydrogen. Our unique quarterly world funding and M&A stories are the {industry}’s premier supply for monitoring funding exercise within the sector. These stories and trackers are important for monitoring market, know-how, and sector developments, serving as vital instruments for concentrating on buyers. Be taught extra at: http://www.MercomCapital.com. Join Mercom’s clear vitality stories: https://mercomcapital.com/clean-energy-reports/.



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