The solar sector experienced a remarkable surge in funding and activity during the first nine months of 2023, setting a new record for investments, according to data released by Mercom Capital Group.
Total corporate funding, a combination of venture capital (VC) funding, public market investments, and debt financing, reached an impressive $28.9 billion in 9M 2023. This figure marks a substantial 55 percent increase compared to the $18.7 billion raised during the same period in 2022. However, the number of deals decreased slightly by 5 percent, with 124 deals in 9M 2023 compared to 131 in 9M 2022.
In the VC funding domain, activity witnessed a 4 percent uptick, with $5.7 billion raised in 51 deals in 9M 2023, compared to $5.5 billion raised in 72 deals during the same period in 2022. The top VC deals in 9M 2023 included $471 million raised by 1KOMMA5°, $428 million raised by Enfinity Global, $375 million raised by Silicon Ranch, $360 million raised by CleanMax, and $350 million raised by Juniper Green Energy. An impressive total of 159 VC investors participated in solar funding during 9M 2023.
In the public market, solar financing for 9M 2023 amounted to $7.2 billion, showing a substantial 47 percent increase compared to $4.9 billion in 9M 2022, spread across 19 deals. The solar debt financing activity also showcased a remarkable growth, reaching $16 billion in 54 deals during 9M 2023, a substantial 93 percent increase from the $8.3 billion raised in 48 deals during the same period in 2022. Additionally, 10 securitization deals in 9M 2023 totaled $3.2 billion, reflecting a 39 percent increase year-on-year compared to the $2.3 billion raised in eight deals in 9M 2022.
In terms of mergers and acquisitions (M&A), the solar sector witnessed 75 transactions in 9M 2023, slightly down from 90 transactions in 9M 2022. The largest deal in this period was made by Brookfield Renewable in the second quarter, as they agreed to acquire Duke Energy’s unregulated utility-scale commercial renewables business in the U.S. for approximately $2.8 billion.
Project acquisitions during 9M 2023 amounted to 166, totaling 31.6 GW, a decrease from the 207 projects acquired for 52.1 GW in 9M 2022. Notably, Project Developers and Independent Power Producers (IPPs) were the most active acquirers of solar projects in Q3 2023, acquiring 2 GW, followed by various entities such as insurance companies, pension funds, energy trading companies, industrial conglomerates, and IT firms.
The solar sector continues to show robust growth, attracting significant investments and acquisitions, setting the stage for a promising future in renewable energy. For detailed insights and in-depth analysis, the full report can be accessed here.