Corporate funding in the global solar sector rose 45% year over year through the third quarter of 2026, reaching $25.1 billion across 170 deals. The figure compares with $17.3 billion raised through 127 deals during the same period in 2025, according to Mercom Capital Group.

Debt financing accounted for most of the growth. Announced solar debt investments totaled $20.4 billion across 80 deals, up 61% from the $12.7 billion raised through 60 deals in the first nine months of 2025. Public market financing also increased, reaching $2.7 billion across 32 deals, compared with $1.7 billion across 12 deals a year earlier.

Venture capital moved in the opposite direction. Solar-sector VC funding fell 31% to $2 billion across 60 deals, down from $2.9 billion across 55 deals in the year-ago period. Downstream solar companies attracted $1.3 billion through 39 transactions.

The largest venture transactions included $343 million for Inox Clean Energy, $180 million for Nexamp, $165 million for Clean Max Enviro Energy Solutions, $150 million for Amarenco and $129 million for Erco.

Solar mergers and acquisitions also became more active, with 88 transactions recorded through three quarters of 2026 versus 76 in the same period of 2025. Large-scale project acquisition activity rose to 205 transactions from 166, while the capacity changing hands increased to 34.4 GW from 29 GW.

Project developers and independent power producers were the most active buyers in the third quarter, acquiring 6.7 GW of projects. Investment firms bought 1.2 GW, while distributors and engineering and construction companies acquired 852 MW. Utilities purchased 362 MW.

Among the notable corporate transactions were Inox Solar Americas’ $750 million acquisition of Boviet Solar, Drax’s $737 million purchase of Bluefield Solar Income Fund, NextPower’s $378 million acquisition of Zimmermann PV-Steel Group, and Greenbacker’s $375 million purchase of a 59.14% stake in Dasolar. TCL Solar also completed strategic acquisitions during the period.

Mercom Capital Group CEO Raj Prabhu said the increase was driven mainly by debt financing, alongside stronger public-market fundraising and greater M&A and project acquisition activity. He also noted that changes in U.S. tax policy, trade restrictions, higher equipment costs and uncertainty over project economics continued to make financing conditions difficult and uneven across the industry.

Sources: pv magazine.