Mercom Capital Group’s latest report reveals a strong rebound in global solar corporate funding for Q3 2025, reaching $6.5 billion. This marks a significant quarterly increase, driven by a surge in venture capital investments and public market financing.
Q3 2025 Solar funding Q3 2025 Corporate Funding Report
In the third quarter of 2025, global solar corporate funding—which includes venture capital, private equity, debt, and public market financing—hit $6.5 billion across 49 deals. This represents a 17% increase from the $5.6 billion raised in Q2 2025 and a robust 38% year-over-year jump, according to the latest report from Mercom.
Despite the strong quarter, the broader trend for the year shows a slight contraction. Corporate funding in the solar sector reached $17.3 billion in the first nine months of 2025, down from $19.5 billion raised during the same period in 2024. The report highlights a significant 46% year-over-year decline in venture capital (VC) and private equity funding for the first three quarters. In this period, the sector raised $1.7 billion through 37 deals, compared to $3.1 billion from 56 deals last year.
However, Q3 showed a sharp reversal in VC funding, which jumped to $612 million in 11 deals—a substantial increase from $193 million in six deals in Q2 2025. The largest VC deals of the quarter included Heliogen raising $100 million, SolarSquare securing $100 million, and Zonergy obtaining $100 million. Other notable deals involved Spruce Power ($75 million) and Phono Solar ($50 million).
Public Market Financing and Solar funding Q3 2025 M&A Activity
According to Mercom’s report, public market financing for the solar sector rose to $1.2 billion in Q3 2025, up from $1 billion in Q2 2025. The nine-month total, however, saw a decline, with $3.2 billion raised in 10 deals, compared to $5.6 billion across 14 deals during the same period in 2024.
The largest public market financing deal in Q3 2025 was Adani Green Energy’s sale of 1.4% of its shares for $643 million, a strategic move to reduce debt and improve liquidity. This follows a major $1.35 billion investment in Adani Green’s solar operations by U.S.-based GQG Partners earlier in the year.
Other key public market transactions included Azure Power raising $300 million through a rights issue and GCL Technology securing $287 million to support its solar manufacturing expansion efforts. Such expansions are complex undertakings, requiring a deep understanding of the basics of solar panel manufacturing and careful management of the supply chain for essential solar panel raw materials like polysilicon. While investment flows into manufacturing, the polysilicon segment continues to face market headwinds from oversupply, though companies like Daqo New Energy have shown operational improvements by focusing on efficiency and cost discipline.
Solar M&A activity also saw a quarterly increase, with 61 transactions in Q3 2025 compared to 54 in Q2 2025. The total number of deals in the first nine months of 2025 (168) remained stable compared to the same period in 2024 (167 deals).
Debt Financing and Project Acquisition Trends in Solar funding Q3 2025
Debt financing in the solar sector reached $4.7 billion in Q3 2025, a modest increase from $4.4 billion in Q2 2025. The total for the first nine months of 2025 stood at $11.9 billion, up from $10.8 billion in the same period of 2024. Notable project financing deals in Q3 included Sun Cable’s $1.1 billion funding for an ambitious intercontinental solar project, Greenko Group’s $700 million for a hybrid solar-wind project in India, and Lightsource bp’s $600 million for a solar project in Brazil.
Solar project acquisition activity remained strong, with 14.9 GW of capacity acquired in Q3 2025, slightly down from 15.2 GW in the previous quarter. Project developers and independent power producers (IPPs) were the most active acquirers, snapping up 5.4 GW of projects. The total acquired capacity for the first nine months of 2025 (45.1 GW) outpaced the 43.2 GW acquired during the same period in 2024.
The largest project acquisition in Q3 was Ib Vogt’s purchase of an 8 GW solar portfolio in Spain from Grupo Urbas. Other significant transactions included Akuo Energy’s purchase of a 2.1 GW solar project from TotalEnergies in the United States and Lightsource bp’s acquisition of a 1.2 GW solar project from First Solar in Brazil.
Conclusion: A Sector Rebounding with Solar funding Q3 2025 Confidence
The solar sector’s corporate funding demonstrated a healthy quarterly rebound in Q3 2025, with impressive growth in venture capital and public market financing. While total funding for the year-to-date is slightly behind 2024 levels, the significant project acquisitions and robust debt financing deals signal continued investor confidence and aggressive expansion in the industry. For homeowners and tenants in Germany, this sustained global investment in the solar supply chain could lead to more competitive panel prices and technological advancements in the near future.
To gain a deeper understanding of the industry’s financial landscape and production dynamics, from equipment to costs, explore our free e-course on solar panel manufacturing.
