Solar Funding Drops 4% in Q1 2023: Mercom

New Delhi, Apr 22 (PTI) Corporate funding into the solar sector declined 4 per cent to USD 8.1 billion globally during January-March period due to factors like high input cost and supply chain issues, according to Mercom Capital.

The sector had attracted USD 8.4 billion investments in the first quarter or Q1 in 2023, the US-based research firm said in a report on Monday.

However, on a quarter-on-quarter (Q-o-Q) basis, the funding was 47 per cent over USD 5.5 billion raised in October-December or Q4 period of 2023, the report said.

"The solar sector is experiencing peak uncertainty and a challenging investment climate. The sector is grappling with multiple hurdles, including the likelihood of prolonged high-interest rates, higher labour and construction costs due to inflation, and supply chain issues, coupled with trade disputes and tariffs," Raj Prabhu, CEO of Mercom Capital Group, said.

In India, Ecofy secured an investment of USD 10.83 million, InSolare raised USD 8 million in a growth funding round, and Metafin secured USD 5 million equity funding through venture capital (VC) funding route.

In the domestic debt financing segment, ReNew refinanced non-convertible debentures worth USD 288.3 million, AmpIn Energy Transition secured an investment totalling USD 26.9 million, and Husk Power Systems secured USD 20 million.

Besides, various other multi-million transactions were carried out in the public market financing, project funding and merger and acquisition segments in India.

Mercom Capital specialises in providing market intelligence on energy storage, smart grid technology, and solar energy, in addition to offering advisory services on emerging markets and strategic decision-making.