Solar Funding Dips 10% to USD 16.6 Billion in H1 2024: Mercom
Jul 17, 2024 17:25
Global corporate funding in the solar sector fell 10% to USD 16.6 billion in the first half of 2024, driven by uncertainties in major markets, according to Mercom Capital.
New Delhi, Jul 17 (PTI) Total corporate funding in the solar sector globally fell by 10 per cent to USD 16.6 billion in January-June 2024 due to uncertainties in major markets including the US, according to Mercom Capital.
In the first half of 2023, the global solar energy sector attracted USD 18.5 billion of investment, the US-based research firm said in a report.
"Total corporate funding, including venture capital/private equity (VC) funding, public market, and debt financing, in 1H 2024 totaled USD 16.6 billion compared to USD 18.5 billion raised in 1H 2023. The number of deals increased 9 per cent to 87 deals in 1H 2024 compared to 80 during the same period last year," the 'Solar Funding and M&A Report' said.
"This has happened because of uncertainties in major markets. The financing activity in the solar sector remains restrained despite tailwinds from the Inflation Reduction Act and favourable global policies," said Raj Prabhu, CEO of Mercom Capital Group.
Besides, high interest rates, an uncertain rate trajectory and timeline, increasing trade barriers, supply chain challenges, concerns about the US presidential election's impact on the sector, and constantly evolving trade policies have created an unpredictable and uncertain climate.
This has slowed down development, investments, and decision-making, he added.
In the first half of 2024, the global VC funding activity decreased 29 per cent with USD 2.7 billion raised in 29 deals compared to USD 3.8 billion from 33 deals in the first half of 2023.
In India, independent power producer AMPIN Energy Transition secured funding of up to USD 35 million from responsAbility. While Ecozen and SolarSquare raised USD 30 million and 4.2 million in funding rounds to accelerate expansion and meet working capital needs.
The global debt financing activity in the first half of 2024 reached USD 12.2 billion in 50 deals, a 53 per cent increase compared to 1H 2023 when USD 8 billion was raised in 33 deals.
In this space, Jakson Green in India obtained a sustainable trade facility of USD 7.1 million from HSBC India and Husk Power Systems secured a USD 4 million investment in debt financing from Electrifi.
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