Global Solar Industry Financing Drops By 10% Year-on-year in The First Half Of 2024

According to the "Solar Financing and Mergers and Acquisitions Report for the First Half and Second Quarter of 2024" released by Mercom Capital Group, the total financing amount of the solar photovoltaic industry in the first half of 2024 was $16.6 billion, a decrease of 10% compared to $18.5 billion in the first half of 2023, which was attributed to the "unpredictable and uncertain" trade and policy environment. On the contrary, the number of transactions increased from 80 in the same period last year to 87, a year-on-year increase of 9%.

In terms of venture capital, 29 transactions were conducted in the first half of 2024, raising a total of $2.7 billion, lower than the $3.8 billion raised in the first half of 2023. During this period, downstream solar companies conducted 24 transactions with a total value of 2.5 billion US dollars. Venture capital in the second quarter of 2024 increased by 24% year-on-year, raising $2.2 billion, with PineGate Renewables' $650 million being the largest venture capital transaction during the period.

In terms of public market financing, the total amount in the first half of 2024 was 1.7 billion US dollars, involving 8 transactions, significantly lower than the 6.7 billion US dollars in the first half of 2023. In terms of solar debt financing, 50 transactions were conducted with a total amount of 12.2 billion US dollars, an increase of 53% compared to last year's 8 billion US dollars, which is the highest record for debt financing during the same period in a decade.

Securitization transactions have also shown growth, with 8 transactions completed in the first half of 2024, totaling $2 billion, an increase of 5% from $1.9 billion a year ago.

In terms of mergers and acquisitions, 40 transactions were completed in the first half of 2024. Brookfield Asset Management and its institutional partners acquired a 53.12% stake in French developer Neoen for $6.54 billion, which is one of the representative projects.

Raj Prabhu, CEO of Mercom Capital Group, stated that despite the push for the Inflation Reduction Act and other favorable global policies, high interest rates, uncertain interest rate changes, increased trade barriers, supply chain challenges, and concerns about the potential industry impact of the US presidential election are putting pressure on financing activities in the solar industry. The above factors have slowed down the development, investment, and decision-making process of the solar energy industry.