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Yahoo
5 days ago
- Business
- Yahoo
Solar and storage financing is down, but dealmaking is up
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Dive Brief: Total corporate funding for solar companies — including venture capital, public market and debt financing — fell 39% year-over-year in the first half of 2025, according to data from Mercom Capital Group. Energy storage companies saw funding drop 41% over the same time period, according to Mercom. Although total funding declined, project acquisitions and merger activity picked up, likely driven by decreased valuations, according to Raj Prabhu, CEO of Mercom, which collects data on financing deals announced around the globe, excluding data on Chinese companies. Despite an early phase-out of renewable energy tax credits under the One Big Beautiful Bill Act, having the final details in hand could be enough to prompt more investor activity in the second half of 2025, Prabhu said. Dive Insight: Investors dislike uncertainty, so it should be no surprise that financing for solar and storage companies took a dive in the first half of the year, according to Prabhu. But the consulting firm's data also points to a handful of bright spots. Solar public market financing dropped 73% from $1.7 billion in the first half of 2024 to $467 million in the first half of 2025, according to Mercom. The total value of venture capital and private equity funding also fell about 50% year over year, but the number of individual deals grew from 29 to 32. It's not entirely clear, Prabhu said, what may have prompted investors to pursue more, but smaller, deals in the solar sector. If investors were locking in good deals during the downturn, they weren't alone. Nearly 20 GW of existing solar assets changed hands in the first half of 2025, compared to 18.5 GW over the same time period in 2024. Mergers and solar company acquisitions also rose, led by investment firms and utilities. 'When the market has so much volatility and uncertainty, there are always deals to be made, assets to be picked off,' Prabhu said. 'So if investors see a good deal — an undervalued asset, an undervalued company — because of the uncertainty ... they are going to do those deals and acquire that company.' Storage took an even bigger hit than solar, with venture capital and private equity falling 29% across fewer deals, public market funding down 43%, and just three mergers and company acquisitions, down from 14 in the first half of 2024. However, acquisitions of energy storage projects more than doubled, and venture capitalists are showing an interest in alternative storage technologies like sodium-based batteries, according to Mercom. Investment trends should begin to stabilize and possibly recover toward the end of this year now that Congress has completed the reconciliation process, Prabhu said. While the outcome may not have been favorable for renewable energy companies, knowing what the policy landscape looks like going forward should help investors identify the companies that are best positioned to pivot. And there is some evidence from the quarterly data that the solar sector is already adapting, Prabhu said. Debt financing ticked upward slightly in the second quarter of 2025, suggesting that some of the development plans solar companies put on hold in early 2025 have already begun to move forward. 'The demand is there from data centers and AI ... but the rules of the game itself have changed in the last couple of quarters,' he said. 'The players who understand this early will get ahead and define the next chapter of the U.S. and global solar industry going forward.' Recommended Reading Interior halts offshore wind leasing, claims industry was favored by Biden administration Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
24-07-2025
- Business
- Time of India
Renewable energy drive hits milestone, solar powers nearly a quarter of Installed capacity
New Delhi: India's transition to renewable energy has crossed a significant milestone, with solar energy alone now accounting for nearly 24 per cent of the country's total installed power capacity. This was revealed during the Mercom Renewables Summit 2025 held on Thursday, where key stakeholders and industry leaders gathered to assess the progress and future roadmap of India's green energy mission. According to data presented by Mercom India Research, as of March 2025, India's cumulative installed large-scale solar capacity has reached 89.7 GW. Among the states leading this transformation are Rajasthan, Gujarat, and Karnataka, each with over 10,000 MW of installed solar capacity. The summit's keynote presentation showcased a paradigm shift in India's energy mix over the last decade. From 2010 to 2025, the share of new capacity additions from coal has steadily declined, while solar has emerged as the dominant source of new energy capacity. As of Q1 2025, renewable energy sources (including large hydro) account for 48.4 per cent of India's total installed power capacity. Solar power alone contributes 23.9 per cent, followed by wind at 10.6 per cent, large hydro at 10.2 per cent, and other sources, including biomass and small hydro. "This shift highlights India's commitment to clean energy, driven by ambitious policy frameworks, falling technology costs, and a growing appetite for climate action," said Raj Prabhu, Founder &CEO, Mercom Capital Group. "With global climate commitments looming, India's renewable energy journey is seen as critical not only for its own future but for global climate goals," Raj Prabhu told ANI. The summit also highlighted India's diversified approach to energy transition, incorporating wind, hydropower, and waste-to-energy alongside solar. However, coal continues to hold a significant portion of the energy mix, suggesting a need for more aggressive phasing down of fossil fuels. The event underscored the urgent need for continued investments, grid upgrades, and policy innovations to sustain the momentum. With global climate commitments looming, India's renewable energy journey is seen as critical not only for its own future but for global climate goals. (ANI) .
Time of India
08-07-2025
- Business
- Time of India
Battery storage addition rises sixfold to 341 MWh in 2024; cumulative capacity reaches 442 MWh: Report
New Delhi: India added 341 megawatt-hours (MWh) of battery energy storage capacity in 2024, marking a more than sixfold increase from the 51 MWh added in 2023, according to the 'India's Energy Storage Landscape 2024' report released by Mercom India Research. With this, the country's cumulative installed battery energy storage capacity stood at nearly 442 MWh as of December 2024. The report noted that solar-plus-storage systems accounted for nearly 60 per cent of the cumulative installed battery storage capacity. This was followed by approximately 36 per cent from other renewable energy combinations with round-the-clock capability, and about 4 per cent from standalone battery energy storage systems. The remaining share came from floating solar with storage projects. India has also added 4.7 gigawatts (GW) of pumped storage capacity to date. As of December 2024, Karnataka accounted for 36 per cent of the cumulative installed energy storage capacity, followed by Chhattisgarh with 27 per cent and Gujarat with 17 per cent. 'India's energy storage sector made significant progress in 2024, but it still has a long way to go to catch up with its global peers. The government's mandate to co-locate storage with solar projects is a major catalyst. Requiring a two-hour system covering 10 per cent of installed capacity is a strong, clear directive that has energized the market. It's already translating into market activity, with tenders and auctions gaining traction, along with a growing pipeline of projects. What we're seeing now is the beginning of a market shift with storage becoming central to India's renewable energy strategy,' said Raj Prabhu, CEO of Mercom Capital Group. According to the report, as of December 2024, India had nearly 4 gigawatt-hours (GWh) of standalone battery storage, over 2 GW of solar-plus-storage, and more than 16 GW of renewable energy-plus-storage projects in various stages of development. The pipeline for pumped storage exceeded 51 GW, with over 37 GW in the survey and investigation phase and more than 14 GW under active development. Gujarat had the largest pipeline of standalone battery storage capacity under development, followed by Maharashtra and Rajasthan. Mercom stated that favourable provisions in the renewable energy policies of these states, along with annual energy storage obligations in place through FY30, were key factors driving demand. In 2024, various government agencies issued energy storage tenders totalling nearly 27 GW and auctioned approximately 17 GW of projects, with or without associated renewable energy capacity. Solar-plus-storage tenders recorded a 118 per cent year-on-year increase during the year.
Time of India
28-05-2025
- Business
- Time of India
India adds 1.2 GW rooftop solar capacity in Q1 2025, residential segment accounts for 78%
New Delhi: India added 1.2 GW of rooftop solar capacity in the January-March quarter of 2025, marking a 232 per cent increase over the 366.5 MW installed in the corresponding quarter of 2024, according to Mercom India Research. The installations in Q1 2025 were 6 per cent lower than the 1.3 GW added in Q4 2024. The capacity addition during the quarter was the second-highest ever for rooftop solar installations in the country. According to Mercom, the PM Surya Ghar: Muft Bijli Yojana contributed to more than 77 per cent of the installations in the quarter. However, the quarter fell short of a new record due to implementation bottlenecks in the programme, high system costs, and a shortage of Domestic Content Requirement (DCR) compliant modules. The residential segment accounted for nearly 78 per cent of rooftop installations in the quarter. The industrial, commercial and government segments accounted for 16 per cent, 6 per cent, and 0.4 per cent, respectively. Installations under the capital expenditure (CAPEX) model comprised over 91 per cent of the additions, while the operational expenditure (OPEX/RESCO) model accounted for 9 per cent. "Momentum in the residential solar segment has slowed due to implementation hurdles in the Surya Ghar program, persistent component shortages, and high system costs. Consumer expectations are not being met, whether it is cost, quality, or installation timelines. Addressing these issues is critical to unlocking the true potential of the residential solar market," said Raj Prabhu, CEO of Mercom Capital Group. Among states, Gujarat, Maharashtra and Uttar Pradesh led in rooftop solar capacity additions, accounting for over 16 per cent, 14 per cent, and 13 per cent, respectively. Tenders for rooftop solar totalling 494.2 MW were issued in Q1 2025, representing a decline of over 53 per cent quarter-on-quarter and 41 per cent year-on-year. Of this, 82 per cent of the tendered capacity was for government buildings, and 39 per cent of it fell under the PM Surya Ghar programme. At the end of Q1 2025, India's cumulative rooftop solar capacity stood at 14.9 GW. The rooftop segment accounted for over 18 per cent of the total solar installations in the quarter. Uttar Pradesh recorded the highest compounded quarterly growth rate between Q1 2024 and Q1 2025 at more than 15 per cent, followed by Madhya Pradesh and Kerala at 11 per cent and 9 per cent, respectively. The average cost of rooftop solar systems rose by about 1 per cent quarter-on-quarter and nearly 22 per cent year-on-year in Q1 2025. The Mercom report also includes analysis of net metering policies in all states and Union Territories.
Time of India
20-05-2025
- Business
- Time of India
India adds 6.7 GW solar capacity in Q1; installations down 25% YoY
New Delhi: India added 6.7 GW of solar capacity in the first quarter (Q1) of 2025, accounting for 54 per cent of the 12.3 GW of total new power capacity additions during the period, according to Mercom India Research 's Q1 2025 India Solar Market Update. The 6.7 GW addition marks a 25 per cent year-on-year (YoY) decline in solar installations. Large-scale solar projects contributed 82 per cent of Q1 solar installations, while rooftop solar accounted for 18 per cent. Rajasthan and Gujarat led large-scale installations, contributing 35 per cent and 30 per cent, respectively. Maharashtra accounted for 16 per cent. As of March 2025, India's cumulative installed solar capacity stood at 104.6 GW. Solar power accounted for 22 per cent of the country's total installed power capacity and 48 per cent of the total installed renewable energy capacity. Large-scale solar projects made up over 86 per cent of the cumulative capacity, with rooftop solar comprising nearly 14 per cent. At the end of Q1 2025, Rajasthan had the highest cumulative installed large-scale solar capacity, accounting for 29 per cent of the national total. Gujarat and Karnataka followed with 17 per cent and 13 per cent, respectively. India's large-scale solar project pipeline stood at 180.4 GW, with another 127.8 GW of projects tendered and pending auction. Tenders totaling 14.4 GW were announced during the quarter, down 53 per cent YoY but up 5 per cent quarter-on-quarter (QoQ). A total of 6.4 GW of solar projects were auctioned in Q1 2025, representing a decline of 39 per cent QoQ and 74 per cent YoY. The average cost of large-scale solar projects increased 3 per cent QoQ and 1 per cent YoY. Commenting on the sector outlook, Raj Prabhu, CEO of Mercom Capital Group, said: 'Indian solar installations were off to a slow start in Q1. While the project pipeline for 2025 is strong, a shortage of domestic modules and persistently high prices remain key concerns. Unless supply-side challenges are addressed quickly, project execution could stall. PPA and PSA signings continue to lag behind tenders, while land and transmission bottlenecks are slowing progress and delaying project commissionings. The government must act quickly to approve the ISTS waiver extension and end the uncertainty surrounding it. Without an extension, a significant number of projects will become financially unviable, further disrupting the market.'
