The total corporate funding includes venture capital (VC) funding, public market, and debt financing, the research firm said in a report on Monday.

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The USD 34.3 billion in 2023 is the highest in a decade, the ‘Mercom Annual and Q4 2023 Solar Funding’ report said.

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“The total corporate funding… into the solar sector, increased 42 per cent year-over-year (y-o-y) in 2023, with USD 34.3 billion raised in 160 deals, compared to USD 24.1 billion in 175 deals in 2022,” it said.

The funding in the sector was the highest in a decade despite high-interest rates and challenging market conditions, Mercom Capital Group CEO Raj Prabhu said, adding solar continues to attract significant investments driven by the Inflation Reduction Act (an act of the US), the global focus on energy security, and favorable policies worldwide.

Debt financing also hit a decade high, and venture capital investments and public market financing recorded the second-highest amount since 2010, he said.

The global VC and private equity funding in the solar sector in 2023 came in strong at USD 6.9 billion, just 1 per cent lower than the USD 7 billion raised in 2022.

There were 26 VC funding deals of USD 100 million or more in 2023.

In India, Husk Power Systems, a solar microgrids operator, secured USD 43 million in the series D funding round, while Freyr Energy, a rooftop installation for residential and micro, small, and medium enterprises (MSMEs) company in India raised USD 7 million in series B funding.

Public market financing in 2023 totaled USD 7.4 billion, 45 per cent higher than the USD 5.1 billion in 2022.

In 2023, the announced debt financing stood at USD 20 billion, 67 per cent higher compared to USD 12 billion in 2022 and the highest amount raised since 2010.

In the debt financing segment, Husk Power Systems secured USD 60 million in debt from several finance institutions, including the European Investment Bank (EIB), and the International Finance Corporation (IFC) in India.

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