Total corporate funding in the solar PV industry reached US$22.2 billion in 2025, a 16% year-on-year decrease.
This is according to the latest report from market research firm Mercom Capital Group, which includes deals in venture capital (VC), solar public market financing, debt financing and mergers and acquisitions (M&A). Total corporate funding decreased for the second year in a row, after reaching US$26.3 billion in 2024 and US$34.3 billion in 2023.
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Despite a decrease in funding volume in 2025, the number of deals increased year-over-year from 157 in 2024 to 175 in 2025.
Another positive outcome in 2025 is that the number of large-scale solar PV acquisitions increased by 13%, with 246 compared to the 217 registered in 2024. However, the increased number of acquisitions did not increase the volume of the capacity, which decreased slightly to 37.4GW in 2025, compared with 37.7GW in 2024.
“2025 was a year of recalibration for the solar industry, shaped by policy uncertainty, trade and tariff risks, and higher interest rates that weighed on overall funding levels,” said Raj Prabhu, CEO of Mercom Capital Group. “Despite these challenges, corporate funding activity was resilient, with deal counts increasing to multi-year highs even as total capital raised declined, reflecting a shift toward smaller and more selective transactions.
“Policy clarity in the second half of the year helped improve market visibility for investors and supported increased activity in lower-risk, execution-ready deals. Corporate and project M&A were bright spots in 2025, reflecting sustained demand for solar assets driven by rising energy demand.”
M&A acquisitions increase, other transactions decline, in 2025
Moreover, the value of global VC and private equity funding, public market financing and debt financing deals were all down year-on-year. Despite a higher number of VC funding deals in 2025, with 75 compared to 60 deals in 2024, the value of these deals was 22% lower last year, with a total of US$3.5 billion involved.
Of the 75 VC funding deals in 2025, only eight exceeded US$100 million. The largest deals last year were from US renewables power operator Origis Energy, for US$1 billion; US independent power producer (IPP) Silicon Ranch, for US$500 million in April 2025; and French solar manufacturer Holosolis, for more than US$250 million in November 2025 for its 5GW module assembly plant in France at which it aims to begin construction this year.
There were also fewer VC investors participating in funding deals in 2025 compared with the previous year, with 224 versus 181 in 2024.
Furthermore, public market financing decreased by 13% year-over-year from US$3 billion in 2024 to US$2.6 billion in 2025. Debt financing came to US$16.1 billion across 80 deals, down 14% from the previous year.
To finish on a more positive note, M&A activity was up in 2025 by 17%, with 96 corporate M&A transactions compared to 82 in 2024. According to Mercom, the largest transaction in that sector was by global investment manager Ares Management Corporation, which acquired a 20% stake in Italian oil major Eni’s renewable arm, Plenitude. The transaction was for approximately €2 billion (US$2.34 billion), which valued Plenitude at nearly €10 billion.
