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Updated January 29th, 2024 at 15:14 IST

Solar sector achieves decade-high corporate funding of $34.3 billion in 2023: Mercom

Report highlights that this funding milestone, achieved through a total of 160 deals, is the highest in the past ten years.

Reported by: Business Desk
Solar energy
Solar sector achieves decade-high corporate funding | Image:Pexels
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Mecrom report: In a display of investor confidence, the solar sector witnessed a decade-high corporate funding of $34.3 billion in 2023, marking a remarkable 42 per cent year-over-year increase, as outlined in the 'Mercom Annual and Q4 2023 Solar Funding' report released by research firm Mercom Capital Group on Monday.

The report highlights that this funding milestone, achieved through a total of 160 deals, is the highest in the past ten years, overcoming challenges posed by high interest rates and market complexities. Raj Prabhu, CEO of Mercom Capital Group, emphasised that solar's enduring appeal to investors stems from the Inflation Reduction Act in the US, global emphasis on energy security, and favourable policies worldwide.

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Debt financing

Debt financing, a significant component of the overall funding landscape, also reached a decade-high in 2023. Venture capital (VC) and private equity funding globally remained robust at $6.9 billion, just 1 per cent shy of the $7 billion recorded in 2022. The report notes a substantial presence of 26 VC funding deals exceeding $100 million each during 2023.

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Public market financing also witnessed substantial growth, totaling $7.4 billion in 2023, a 45 per cent increase from the $5.1 billion recorded in the previous year.

The debt financing landscape in 2023 displayed a remarkable surge, reaching $20 billion, a 67 per cent rise compared to the $12 billion recorded in 2022. Husk Power Systems, specifically, secured $60 million in debt from prominent financial institutions, including the European Investment Bank (EIB) and India's International Finance Corporation (IFC), contributing significantly to this surge. The report underscores the global solar sector's resilience and attractiveness to investors despite ongoing economic challenges.

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(with PTI inputs)

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Published January 29th, 2024 at 15:14 IST

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