If you have been keeping an eye on the solar industry like I have, you would be delighted to know that solar companies raised a staggering $34.3 billion in corporate funding last year. This is the most significant amount we have seen in a decade! Why is this exciting? Well, for aspiring homeowners looking to install solar panels for their home or add a solar array for the home, this hints at a future with improved and potentially more affordable solar technology.
The rise in corporate funding illustrates the confidence of investors in the potentials of the solar industry, signaling that an increased number of businesses are willing to invest in the development of solar-powered products and solutions. This invariably means that we could see more solar companies rise to the scene, leading to improved competition, better solar panel options for homes, and a resulting decrease in price.
Interestingly, this funding growth isn’t just a random occurrence. There was a 42% increase from the previous year, sparked by the buoyancy in private market and debt financing. Now, you may ask, what’s behind this growth? According to the key contributors, the Inflation Reduction Act, a focus on global energy security, and favourable policies worldwide have all fueled significant investments into the solar arena.
Unfortunately, Mergers and Acquisition activity (M&A) in the solar industry didn’t experience the same growth in 2023. It actually declined by 25%. But while it might seem like this is hampering growth, the reasons given suggest that solar companies are playing a longer-term game. Higher borrowing costs and cautious investors are causing solar companies to bide their time for more favourable valuations.
Despite this decrease, the prospects of solar panels for your home or setting up a solar array for home remain appealing. The world’s attraction towards cleaner and more sustainable energy sources is keeping the solar industry alive. More people are discovering the benefits of going solar, and this surge infuses a sense of optimism for the industry.
So, if you are considering solar panels for your home or looking forward to building a solar array for home, you can ride on this wave of optimism. There’s a bright future for solar, and the journey is only just beginning. Stand by for more exciting developments in the solar sector as more investments are injected into the industry!
Original Article: https://pv-magazine-usa.com/2024/01/19/solar-corporate-funding-hits-decade-long-high-in-2023/
