Almost 12 GW of solar projects were acquired in Q1 2023

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 2023.

Total corporate funding—including venture capital (VC) funding, public market, and debt financing—into the solar sector in Q1 2023 came to $8.4 billion in 42 deals, a 55% increase compared to $5.4 billion raised in 44 deals in Q4 2022. Funding increased 11% year-over-year (YoY) compared to Q1 2022.

CHART: Solar Corporate Funding Q1 2022-Q1 2023

“Investments in solar bucked the trend in Q1 despite tough economic conditions. The Inflation Reduction Act is a significant driver for investments in solar. The fundamentals are solid, driven by strong demand for the energy transition worldwide, especially in Europe and the United States,” said Raj Prabhu, CEO of Mercom Capital Group.

Global VC funding for the solar sector in Q1 2023 came to $2.1 billion in 18 deals. A total of 52 investors participated in Q1 2023.

CHART: Solar Top VC Funded Companies in Q1 2023

The top VC-funded company in Q1 2023 was Silicon Ranch, which raised $375 million. Of the $2.1 billion in VC funding raised in 18 deals, 64% went to solar downstream companies with $1.4 billion in 10 deals.

Public market financing in the solar sector totaled $2.3 billion in seven deals in Q1 2023, an increase of 1,183% compared to $181 million in five deals in Q4 2022.

Announced debt financing in Q1 2023 totaled $3.9 billion compared to $3.7 billion in Q4 2022.

There were 27 solar M&A transactions in Q1 2023 compared to 38 in Q4 2022.

Almost 12 GW of solar projects were acquired in Q1 2023 compared to 14 GW in Q4 2022.

CHART: Solar Project Acquisitions Q1 2022-Q1 2023

Investment firms and funds were the most active acquirers in Q1 2023, picking up over 4.8 GW of projects.

318 companies and investors are covered in this report.

Get the report: https://mercomcapital.com/product/q1-2023-solar-funding-ma-report/

About Mercom Capital Group

Mercom Capital Group is a global communications and consulting firm focused on clean energy. Mercom produces funding and market intelligence reports covering Solar, Battery Storage, and Smart Grid. Mercom advises cleantech companies on new market entry, custom market intelligence and strategic decision-making. https://www.mercomcapital.com.

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