Solar Sector Sees $4.8 Billion in Corporate Funding in Q1 2025, Reports Mercom Capital Group

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 global solar sector in the first quarter of 2025.

The fundamentals remain strong, and the long-term case for solar is intact. What we need now is clarity and policy certainty to restore confidence in the markets.

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Total corporate funding in the solar sector reached $4.8 billion across 39 deals in Q1 2025—a 41% decline year-over-year (YoY) compared to $8.2 billion raised through 42 deals in Q1 2024. However, funding was up 20% quarter-over-quarter (QoQ) from the $4 billion raised in 40 deals in Q4 2024.

CHART: Solar Corporate funding Q1 2025

"The drop in funding this quarter reflects growing investor caution in response to policy reversals, tariff shocks, and regulatory uncertainties that have forced companies and investors to reassess their strategies. But, the fundamentals remain strong, and the long-term case for solar is intact. What we need now is clarity and policy certainty to restore confidence in the markets. Despite headwinds in the broader funding environment, we did see an uptick in project M&A in Q1," said Raj Prabhu, CEO of Mercom Capital Group.

Global VC funding for the solar sector in Q1 2025 came to $1.4 billion in 14 deals, a 237% increase YoY compared to $406 million raised in 13 deals in Q1 2024. The QoQ increase was primarily driven by a single $1 billion raise.

CHART: Solar Top Five VC Funded Companies in Q1 2025

Public market financing in the solar sector totaled $20 million across two deals in Q1 2025, compared to 6 in Q1 2024.

In Q1 2025, debt financing came to $3.5 billion across 23 deals, compared to $6.4 billion in 23 deals in Q1 2024.

There were 19 solar corporate M&A transactions in Q1 2025, compared to 20 in Q4 2024.

Approximately 13.6 GW of solar projects changed hands in Q1 2025, up from 10.8 GW in Q1 2024.

CHART: Solar project acquisitions

In Q1 2025, project developers and independent power producers acquired 8 GW of projects, followed by investment firms and funds with 2.5 GW, and telecommunications companies, integrated energy traders, insurance firms, and others with 2.3 GW. Electric utilities acquired 485 MW and oil and gas majors took 245 MW.

CHART: Solar project acquirers

263 companies and investors were covered in this 91-page report, which contains 69 charts, graphs, and tables.

Get the report: https://mercomcapital.com/product/q1-2025-solar-funding-ma-report/

About Mercom Capital Group

Mercom Capital Group is an integrated communications, research, and media firm focused exclusively on clean energy markets in the U.S., Europe, India, and the Middle East. Our research division produces industry-leading market intelligence reports on solar, storage, smart grid, and hydrogen. Our exclusive quarterly global funding and M&A reports are the industry's primary source for tracking funding activity in the sector. http://www.MercomCapital.com. Get Mercom's clean energy reports: https://mercomcapital.com/clean-energy-reports/. Follow us: LinkedIn and X.