Solar Corporate Funding Tops $25 Billion as Debt Surges and Venture Capital Pulls Back

Through the first three quarters of 2026, corporate funding for the solar industry climbed to $25.1 billion across 170 deals — a 45% increase from $17.3 billion in 127 transactions recorded over the same period a year earlier, according to a Mercom Capital Group report.

The gains were unevenly distributed across funding types. Debt financing led the expansion, rising 61% from $12.7 billion in 60 deals to $20.4 billion in 80 deals. Public-market activity also grew, from $1.7 billion across 12 transactions to $2.7 billion across 32. Venture capital moved in the opposite direction, contracting 31% to $2.0 billion in 60 deals, down from $2.9 billion in 55 deals the year before. Of that venture total, $1.3 billion went into the downstream segment.

Project acquisitions also expanded. The period saw 205 deals covering 34.4 GW of capacity, compared with 166 deals totaling 29 GW a year earlier. In the third quarter, developers and independent power producers were the most active buyers at 6.7 GW, followed by investment funds at 1.2 GW, other buyers at 852 MW, and utilities at 362 MW.

Mercom head Raj Prabhu observed that capital stayed broadly available, but access and investor appetite remained uneven. He pointed to shifting US tax policy, trade restrictions, rising equipment costs, and uncertain project economics as factors that dampened confidence across parts of the market.

Source: PV Magazine