Global Solar Funding Drops Amid Market Uncertainties

Global corporate funding in the solar sector dropped by 10% to USD 16.6 billion in the first half of 2024, according to recent data from Mercom Capital. This decline is attributed to uncertainties in major markets, including the US.

In contrast, the sector pulled in USD 18.5 billion during the same period in 2023. The number of deals increased by 9% to 87, up from 80 in the previous year, but investment levels fell. 'The financing activity remains restrained despite favorable global policies,' said Raj Prabhu, CEO of Mercom Capital Group.

High-interest rates, evolving trade policies, and supply chain challenges have created an unpredictable climate slowing down development and investments. Additionally, while global debt financing increased by 53% year-on-year, venture capital funding saw a significant drop of 29% in the same period.

(With inputs from agencies.)