After a subdued start to the year, the global solar financing landscape saw a notable recovery in the third quarter of 2025. According to Mercom Capital Group’s latest Solar Funding and M&A Report, corporate funding rose in Q3, yet total investments for the first 9 months stood below last year’s numbers. This reflects an industry finding its balance amid shifting policy dynamics.
Funding Sees Strong Q3 Recovery
Between January and September 2025, total corporate funding, including venture capital (VC), public market, and debt financing, stood at $17.3 billion, marking a 22% decline compared to $22.3 billion in the same period of 2024.
However, the third quarter looked more optimistic. The sector raised $6.5 billion across 49 deals, a 38% year-on-year increase from $4.7 billion in Q3 2024 and an 8% rise quarter-on-quarter from Q2 2025.
In total, 127 corporate funding deals were recorded in 9M 2025, up from 117 deals during the previous year – an indicator that investor confidence is returning even as deal sizes remain conservative.
Industry Recalibration Amid Policy Shifts
“Corporate funding and M&A activity in the first 9 months of 2025 reflected an industry recalibrating to new policies and market realities,” said Raj Prabhu, CEO of Mercom Capital Group.
“After a sluggish first half marked by policy uncertainty, financing activity surged in the third quarter as the market gained clarity around the OBBB. At the same time, M&A accelerated as developers and manufacturers consolidated assets, capacity, and supply chains while project M&A also remained strong, buoyed by renewed confidence due to certainty around policy direction,” he added.
Venture Capital Funding Moderates
Venture capital investments softened during the first 9 months, totaling $2.9 billion in 55 deals, down 17% year-over-year from $3.5 billion in 39 deals in 9M 2024.
Solar downstream companies dominated VC financing with 40 deals worth $2.5 billion. The 5 largest VC transactions included:
Origis Energy – $1 billion
Silicon Ranch Corporation – $500 million
Terabase Energy – $130 million
Enpal GmbH – $129 million
Aukera – $124 million
In total, 161 investors participated in VC funding rounds through the period, highlighting ongoing interest in solar innovation despite tighter investment conditions.
Debt and Public Market Financing Slow Down
Debt financing recorded $12.7 billion across 60 deals in 9M 2025, 24% lower than the $16.7 billion through 68 deals reported in 9M 2024.
Public market financing also dipped, with $1.7 billion raised through 12 transactions, compared to $2.1 billion in 10 deals during 9M 2024.
Securitization activity saw a similar slowdown, totalling $3.1 billion in 7 deals, down from $3.8 billion across 12 deals last year.
