Total Corporate Funding for Solar Sector Up Over 50%, Totaling $18.5 Billion in 1H 2023

Almost 25.5 GW of solar projects were acquired in the first half of the year

AUSTIN, Texas–(BUSINESS WIRE)–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 2023. The report found that financial activity in the solar industry remained healthy in 1H 2023 amid notable economic headwinds.

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Total corporate funding, including venture capital (VC) funding, public market, and debt financing, in 1H 2023 totaled $18.5 billion, 54% higher year-over-year (YoY) compared to $12 billion raised in 1H 2022. The number of deals decreased by 12% YoY, with 80 deals in 1H 2023 compared to 91 during the same period last year.

CHART: Solar Corporate Funding 1H 2019 – 1H 2023

“Even amidst tightening financial conditions and high interest rates, solar financing activity has shown remarkable resilience in the first half of the year. Besides AI, cleantech is one of the few sectors still attracting VC interest. Demand due to the Inflation Reduction Act (IRA) is so strong that even interest rate-sensitive public market and debt financing in solar were also up year-over-year. The lack of easy money, however, affected M&A activity negatively,” said Raj Prabhu, CEO of Mercom Capital Group.

In 1H 2023, global VC funding totaled $3.8 billion in 33 deals.

Solar downstream companies led financing activity with 17 deals worth $2.5 billion in 1H 2023.

CHART: Solar Top VC Funded Companies in 1H 2023

A total of 134 VC investors participated in solar funding in 1H 2023.

Solar public market financing in 1H 2023 came to $6.7 billion in 14 deals.

Solar debt financing activity in 1H 2023 reached $8 billion in 33 deals.

In 1H 2023, seven securitization deals totaled $1.9 billion, a 36% increase YoY compared to 1H 2022.

CHART: Solar Top Disclosed M&A Transactions in 1H 2023

There were 48 solar M&A transactions in 1H 2023.

In 1H 2023, there were 116 project acquisitions for 25.5 GW of solar projects.

CHART: Solar Project Acquirer Mix (%) Q2 2022 – Q2 2023

Project developers and independent power producers (IPPs) were the most active acquirers of solar projects in Q2 2023, picking up 5.5 GW, followed by utilities with 3.9 GW.

There were 187 companies and investors covered in this 98-page report.

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About Mercom Capital Group

Mercom Capital Group is a global communications and consulting firm focused on clean energy. Mercom produces funding and market intelligence reports covering Solar and Battery Storage/Smart Grid/Efficiency. Mercom advises cleantech companies on new market entry, custom market intelligence, and strategic decision-making. Learn more at To get a copy of Mercom’s popular market intelligence reports, visit:


Wendy Prabhu, Mercom Communications
US: +1.512.215.4452

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