Begin typing your search...

Funding in solar sector globally dips 10% to $16.6 bn in Jan-Jun

In a report, US-based research firm Mercom said, in the first half of 2023, the global solar energy sector attracted $18.5 billion of investment, Total corporate funding, including venture capital/private equity (VC) funding, public market, and debt financing, in 1H 2024 totalled $16.6 bn compared to $18.5 bn raised in 1H 2023

image for illustrative purpose

Funding in solar sector globally dips 10% to $16.6 bn in Jan-Jun
X

17 July 2024 8:40 PM IST

New Delhi: Total corporate funding in the solar sector globally fell by 10 per cent to $16.6 billion in January-June 2024 due to uncertainties in major markets including the US, according to Mercom Capital. In the first half of 2023, the global solar energy sector attracted $18.5 billion of investment, the US-based research firm said in a report. "Total corporate funding, including venture capital/private equity (VC) funding, public market, and debt financing, in 1H 2024 totalled $16.6 billion compared to $18.5 billion raised in 1H 2023. The number of deals increased 9 per cent to 87 deals in 1H 2024 compared to 80 during the same period last year," the 'Solar Funding and M&A Report' said. "This has happened because of uncertainties in major markets. The financing activity in the solar sector remains restrained despite tailwinds from the Inflation Reduction Act and favourable global policies," said Raj Prabhu, CEO of Mercom Capital Group. Besides, high interest rates, an uncertain rate trajectory and timeline, increasing trade barriers, supply chain challenges, concerns about the US presidential election's impact on the sector, and constantly evolving trade policies have created an unpredictable and uncertain climate. This has slowed down development, investments, and decision-making, he added. In the first half of 2024, the global VC funding activity decreased 29 per cent with $2.7 billion raised in 29 deals compared to $3.8 billion from 33 deals in the first half of 2023. In India, independent power producer AMPIN Energy Transition secured funding of up to $35 million from responsAbility. While Ecozen and SolarSquare raised $30 million and 4.2 million in funding rounds to accelerate expansion and meet working capital needs. The global debt financing activity in the first half of 2024 reached $12.2 billion in 50 deals, a 53 per cent increase compared to 1H 2023 when $8 billion was raised in 33 deals. In this space, Jakson Green in India obtained a sustainable trade facility of $7.1 million from HSBC India and Husk Power Systems secured a $4 million investment in debt financing from Electrifi.

Funding Solar sector Mercom Capital Corporate Funding 
Next Story
Share it