Hello solar enthusiasts! I’m thrilled to be back, sharing insights into our ever-evolving solar industry. Today, we will be diving into key changes and trends in total corporate funding, based on recent data released from Mercom Capital Group. Whether you’re considering investing in solar companies or thinking about installing solar panels for your home, this post will have something of interest for you.
Although it might sound like a discouraging figure to start with, total corporate funding in the solar sector stood at $22.3 billion across the first nine months of 2024, marking a 23% year-on-year decrease. Wait – don’t despair just yet. Despite the initial dip, several factors indicate continued strength and resilience in aspects of our industry.
For starters, there’s been an exciting increase in debt financing which has given a boost to the sector. In the same period of 2024, debt financing rustled up an impressive $16.7 billion across 68 deals, up from the $16 billion raised across 54 deals in 2023. Even amidst the turmoil, solar financers are showing they are willing to roll the dice which is encouraging for solar companies and solar array for home investors alike.
While funding seems to be on a roller coaster ride, it’s important to point out the resilient fighter in the ring – the sector’s large-scale project funding, which has clocked in a notable $34.3 billion for 2024 year to date. Not bad, I must say!
To throw another interesting fact your way, there were 62 mergers and acquisitions (M&A) transactions in the solar sector during this period, which marked a fall from 75 in the same period in 2023. These figures show that despite upheavals, the solar industry is still exciting and encouraging.
According to Raj Prabhu, CEO of Mercom Capital Group, the solar industry is wrestling with many uncertainties that are affecting investor confidence. Notably, Prabhu mentioned regulatory concerns, unpredictable trade policies, supply chain disruptions, the vagueness of future rate cuts, and ongoing project delays.
It’s clear that the solar industry is going through some growing pains, but it also shows powerful resilience and pockets of growth – and I am excited about that. For those of you thinking about installing solar panels for your home, supporting solar companies, or investing in a solar array for your home, hope isn’t lost, friends. We simply need to adapt, innovate and persevere – as this industry has proven time and time again.
Remember, even the sun has its spots, but it keeps on shining. Onwards and upwards, solar fans!
Original Articlehttps://pv-magazine-usa.com/2024/10/17/solar-corporate-funding-down-23-so-far-this-year/
