Biggest solar deals of 2025: Who’s buying what in a slowing market

New Delhi: Total corporate funding for the global solar sector declined to $10.8 billion in the first half of 2025 (H1 2025), down 39 per cent year-on-year from $17.6 billion in the same period of 2024, according to a report by Mercom Capital Group. The number of funding deals also fell 11 per cent, from 88 in H1 2024 to 78 in H1 2025.Venture capital (VC) and private equity funding dropped 7 per cent year-on-year to $2.5 billion across 32 deals in H1 2025, compared to $2.7 billion across 29 deals in the year-ago period. In the second quarter (Q2) of 2025 alone, VC funding declined 50 per cent year-on-year to $1.1 billion from $2.2 billion.“Legislative, trade and capital market disruptions in the first half of 2025 led to a broad reset across the solar sector,” said Raj Prabhu, CEO of Mercom Capital Group. “Financial activity declined sharply. Looking ahead to the second half of the year, the industry’s ability to adapt to the new policy environment and restore capital flows will determine the pace and direction of recovery.”Solar public market financing plummeted by 73 per cent, falling to $467 million in five deals during H1 2025, from $1.7 billion in eight deals in the same period last year.Debt financing also saw a 41 per cent drop, reaching $7.8 billion in 41 deals, as compared to $13.2 billion across 51 deals in H1 2024. Securitisation deals totalled $1.6 billion in the first half of 2025 across four transactions, a 47 per cent decline from $3 billion raised in nine deals a year ago.Despite the funding slowdown, merger and acquisition (M&A) activity remained strong. The report recorded 50 corporate-level M&A transactions in H1 2025, up from 40 in the first half of 2024. The largest was the $2.3 billion acquisition of Ayana Renewable Power by ONGC NTPC Green (ONGPL), a joint venture of ONGC Green and NTPC Green Energy.

At the project level, 106 solar project acquisitions representing 19.9 GW were reported in H1 2025, compared to 113 acquisitions totalling 18.5 GW in the year-ago period.

Investment firms led solar project acquisitions in Q2 2025, securing 2.1 GW, followed by oil and gas companies (1.53 GW), project developers and IPPs (1.5 GW), and other entities including insurance providers, pension funds and industrial conglomerates (1 GW). Utilities accounted for 136 MW.Solar downstream companies led VC financing activity with 25 deals worth $2.2 billion in H1 2025. Top VC deals during the period included $1 billion raised by Origis Energy, $500 million by Silicon Ranch, $130 million by Terabase Energy, $129 million by Enpal and $111 million by Solveo Energies. A total of 86 VC investors participated in solar funding during the six-month period