Mercom Capital reports USD 17.3 billion raised in the first nine months, policy clarity and lower rates expected to drive solar momentum into 2026

Total corporate funding in the global solar sector reached USD 17.3 billion in the first nine months of 2025, marking a 22 per cent decline from the USD 22.3 billion recorded during the same period last year, according to data released by Mercom Capital Group.

The slowdown during the early part of the year was attributed largely to policy uncertainty in the United States following the national elections. Investors held back amid ambiguity surrounding the new administration’s renewable-energy policies. Confidence began to return by the second quarter with the passage of the Big Beautiful Bill Act, which, despite reducing incentives, brought clarity to timelines and definitions for clean-energy investment.

By the third quarter, markets had regained footing. Funding in Q3 2025 rose to USD 6.5 billion across 49 deals, representing a 38 per cent year-on-year increase from USD 4.7 billion across 29 deals in Q3 2024 and an 8 per cent rise quarter-on-quarter. The rebound reflected both clearer policy direction and stronger investor sentiment.

The total number of financing deals climbed 9 per cent year-on-year, from 117 in 9M 2024 to 127 in 9M 2025. Venture-capital funding, however, slipped 17 per cent to USD 2.9 billion across 55 deals, compared with $3.5 billion across 39 deals a year earlier. Solar downstream companies dominated VC activity, accounting for 40 deals worth USD 2.5 billion.

The largest venture-capital transactions included Origis Energy (USD 1 billion), Silicon Ranch (USD 500 million), Terabase Energy (USD 130 million), Enpal (USD 129 million) and Aukera (USD 124 million). In total, 161 VC investors participated in solar financings during the period.

Public-market financing amounted to USD 1.7 billion across 12 deals, down 19 per cent year-on-year, while announced debt financing totalled USD 12.7 billion across 60 deals, a 24 per cent fall from 2024 levels. Seven securitisations worth USD 3.1 billion were recorded, compared with USD 3.8 billion in twelve deals last year.

In contrast to the funding slowdown, mergers and acquisitions remained active, with 76 transactions executed in 9M 2025, up from 62 in 2024. The largest was the USD 2.3 billion acquisition of Ayana Renewable Power by ONGC NTPC Green, a joint venture between ONGC Green and NTPC Green Energy.

Report noted that investors capitalised on favourable valuations during the uncertain first half of the year, fuelling consolidation and restructuring in the sector.

Project acquisitions totalled 165 transactions covering 29 GW in 2025, compared with 166 transactions covering 28.3 GW last year. Developers and independent power producers led the activity, acquiring 5.4 GW, followed by investment firms with 1.7 GW. Other acquirers included insurers, pension funds, energy traders, industrial groups, and technology companies.

Looking ahead, report expects the solar sector’s momentum to continue into the final quarter of 2025, though some U.S. project cancellations and policy revisions may introduce short-term uncertainty. The firm added that lower interest rates could provide further support to the industry as it heads into 2026.