Total Corporate Funding for Solar Sector Comes to $10.8 Billion in 1H 2025

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 solar sector in the second quarter (Q2) and first half (1H) of 2025.

Total corporate funding, including venture capital/private equity (VC) funding, public market, and debt financing, in 1H 2025 totaled $10.8 billion, 39% lower year-over-year (YoY) compared to $17.6 billion in 1H 2024. The number of deals decreased 11% YoY, with 78 deals in 1H 2025.

“A wave of legislative, trade, and capital market disruptions in the first half of 2025 led to a broad reset across the solar sector, altering the industry’s trajectory with both immediate and long-term impacts. For developers, investors, and manufacturers alike, the period was defined by the need to recalibrate in real-time amid a rapidly shifting market landscape. As a result, financial activity declined sharply. Looking ahead to the second half of the year, the industry’s ability to adapt to the new policy environment and restore capital flows will determine the pace and direction of recovery,” said Raj Prabhu, CEO of Mercom Capital Group.

“While the industry navigated significant headwinds, M&A activity both at the corporate and project levels grew year-over-year, as investor demand remained strong for attractively valued solar assets,” added Prabhu.

Get the report: 1H and Q2 2025 Solar Funding and M&A Report - Mercom Capital Group

In 1H 2025, VC funding decreased 7% YoY, with $2.5 billion in 32 deals compared to $2.7 billion from 29 deals in 1H 2024

Solar downstream companies led financing activity with 25 deals worth $2.2 billion in 1H 2025 and 86 VC investors participated in solar funding in 1H 2025.

Solar public market financing in 1H 2025 totaled $467 million across five deals.

Solar debt financing activity in 1H 2025 reached $7.8 billion in 41 deals. 1H 2025, four securitization deals totaled $1.6 billion.

The solar industry witnessed 50 M&A transactions in the first half of 2025.

A total of 106 solar projects were acquired in the first half of 2025.

Investment Firms were the most active acquirers of solar projects in Q2 2025, with 2.1 GW, followed by oil and gas companies with 1.53 GW, Project Developers and IPPs with 1.5 GW, others with 1 GW, and utilities with 136 MW.

This 106-page report covers 339 companies and investors.

Get the report: 1H and Q2 2025 Solar Funding and M&A Report - Mercom Capital Group

Mercom Capital Group | http://www.mercomcapital.com