October 27th, 2025: Mercom Capital Group, an integrated communications and research firm focused exclusively on clean energy markets, released its report on funding and merger and acquisition (M&A) activity for the solar sector in the third quarter (Q3) and the first nine months (9M) of 2025.
Total corporate funding, including venture capital (VC) funding, public market, and debt financing, in the first nine months (9M) of 2025 stood at $17.3 billion, 22% lower than the $22.3 billion raised in 9M 2024.
However, financing activity rebounded in Q3 2025 with $6.5 billion in 49 deals, a 38% increase year-over-year (YoY) compared to $4.7 billion raised in 29 deals in Q3 2024. Funding increased 8% QoQ compared to $6 billion in 39 deals in Q2 2025.
“Corporate funding and M&A activity in the first nine months of 2025 reflected an industry recalibrating to new policies and market realities. 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,” said Raj Prabhu, CEO of Mercom Capital Group.
The number of deals increased 9% YoY, with 127 deals in 9M 2025 compared to 117 deals during the same period last year.
To get the report, visit: https://mercomcapital.com/product/9m-q3-2025-solar-funding-ma-report
In 9M 2025, VC funding activity decreased 17% YoY, with $2.9 billion raised in 55 deals compared to the $3.5 billion raised in 39 deals in 9M 2024.
Solar downstream companies led financing activity with 40 deals worth $2.5 billion in 9M 2025.
The top VC deals in 9M 2025 were: $1 billion raised by Origis Energy, $500 million raised by Silicon Ranch, $130 million raised by Terabase Energy, $129 million raised by Enpal, and $124 million raised by Aukera.
A total of 161 VC investors have participated in solar funding in 9M 2025.
Solar public market financing in 9M 2025 came to $1.7 billion in 12 deals, 19% lower YoY compared to $2.1 billion in 10 deals in 9M 2024.
Announced solar debt financing activity in 9M 2025 totaled $12.7 billion in 60 deals, 24% lower than 9M 2024, when $16.7 billion was raised in 68 deals.
In 9M 2025, seven securitization deals totaled $3.1 billion, an 18% decrease YoY compared to the $3.8 billion raised in 12 deals in 9M 2024.
In 9M 2025, 76 solar M&A transactions were executed compared to 62 in 9M 2024. The largest transaction was by ONGC NTPC Green (ONGPL), a joint venture between ONGC Green and NTPC Green Energy, which signed a share purchase agreement to acquire a 100% equity stake in the Indian utility-scale renewable energy platform, Ayana Renewable Power, for $2.3 billion.
In 9M 2025, 165 project acquisitions totaling 29 GW were transacted compared to 166 project acquisitions totaling 28.3 GW in 9M 2024.
Project developers and independent power producers (IPPs) were the most active acquirers of solar projects in Q3 2025, picking up 5.4 GW, followed by Investment firms with 1.7 GW. Other companies (insurance providers, pension funds, energy trading companies, industrial conglomerates, and IT firms) acquired 1.1 GW, followed by Oil and Gas companies with 623 MW, and utilities with 320 MW of projects.
There are 303 companies and investors covered in this report. It is 108 pages long and contains 86 charts and tables.