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 the $17.6 billion raised in 1H 2024. The number of deals decreased 11% YoY, with 78 deals in 1H 2025 compared to 88 during the same period last year.

Chart: Solar Corporate Funding 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.

To download the complete report, visit: 1H and Q2 2025 Solar Funding and M&A Report - Mercom Capital Group

In 1H 2025, VC funding activity decreased 7% YoY, with $2.5 billion raised in 32 deals compared to $2.7 billion from 29 deals in the first half of 2024. In Q2 2025, global VC funding activity declined 50% YoY, with $1.1 billion raised across 18 deals compared to $2.2 billion in 16 deals in Q2 2024.

Chart: Solar VC funding 1H 2025

Solar downstream companies led financing activity with 25 deals worth $2.2 billion in 1H 2025.

The top VC deals in 1H 2025 were $1 billion raised by Origis Energy, $500 million raised by Silicon Ranch, $130 million raised by Terabase Energy, $129 million raised by Enpal, and $111 million raised by Solveo Energies.

A total of 86 VC investors participated in solar funding in 1H 2025.

Solar public market financing in 1H 2025 totaled $467 million in five deals, 73% lower than $1.7 billion across eight deals in 1H 2024.

Solar debt financing activity in 1H 2025 reached $7.8 billion in 41 deals, a 41% decrease compared to 1H 2024 when $13.2 billion was raised in 51 deals.

In 1H 2025, four securitization deals totaled $1.6 billion, a 47% decrease YoY compared to $3 billion raised in nine deals in 1H 2024.

In the first half of 2025, there were 50 solar M&A transactions, compared to 40 in the first half of 2024. The largest deal was by ONGC NTPC Green (ONGPL), a joint venture between ONGC Green and NTPC Green Energy, which signed a share purchase agreement to acquire a 100% equity stake in the utility-scale renewable energy platform, Ayana Renewable Power, for $2.3 billion.

Chart: Solar M&A transactions 1H 2025

In 1H 2025, 106 solar project acquisitions totaling 19.9 GW were transacted, compared to 113 project acquisitions totaling 18.5 GW in 1H 2024.

Chart: Solar project acquisitions 1H 2025

Investment Firms were the most active acquirers of solar projects in Q2 2025, picking up 2.1 GW, followed by oil and gas companies with 1.53 GW. Project Developers and IPP with 1.5 GW, followed by other companies (insurance providers, pension funds, energy trading companies, industrial conglomerates, and IT firms) with 1 GW, and utilities with 136 MW.

This report covers 339 companies and investors. It is 106 pages long and contains 88 charts, graphs, and tables.

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