Corporate funding in the global solar sector totaled $4.8 billion across 39 deals in the first quarter of 2025, down 41% from $8.2 billion in 42 deals in Q1 2024, according to a new report from Mercom Capital Group.

Despite the year-over-year decline, funding rose 20% compared to the $4 billion raised in Q4 2024.

“The drop in funding this quarter reflects growing investor caution in response to policy reversals, tariff shocks, and regulatory uncertainties that have forced companies and investors to reassess their strategies,” said Raj Prabhu, CEO of Mercom Capital Group. “But the fundamentals remain strong, and the long-term case for solar is intact. What we need now is clarity and policy certainty to restore confidence in the markets.”

Venture capital funding reached $1.4 billion across 14 deals in Q1 2025, a 237% increase from the $406 million raised in 13 deals during the same period last year. The quarter-over-quarter increase was driven largely by a single $1 billion raise.

Public market financing fell to $20 million from six deals in Q1 2024 to two in Q1 2025. Debt financing dropped to $3.5 billion in 23 deals, compared to $6.4 billion in 23 deals the year prior.

There were 19 corporate solar mergers and acquisitions in Q1 2025, nearly matching the 20 reported in Q4 2024. About 13.6 gigawatts of solar projects changed hands in Q1 2025, up from 10.8 GW in the same period last year.

Project developers and independent power producers accounted for 8 GW of the acquisitions, while investment firms and funds acquired 2.5 GW. Other buyers—including telecommunications firms, integrated energy traders, insurance companies and others—took 2.3 GW. Electric utilities acquired 485 megawatts, and oil and gas majors bought 245 MW.

The full report from Mercom covers 263 companies and investors and includes 69 charts, graphs and tables.