Solar sector debt financing reached $8.9 billion in the first quarter of 2026 – the highest level in more than a decade – while project acquisitions hit 18.4 GW, the most since 2022, according to Mercom Capital Group’s latest quarterly funding and mergers and acquisitions report.
Debt financing drove the quarter, reaching $8.9 billion across 28 deals – the highest level in over a decade, Mercom said. Venture capital funding totaled $1.1 billion across 17 deals, down 21% year over year, while public market financing reached $1.1 billion across eight deals.
The five largest VC-funded companies in the quarter were Inox Clean Energy at $343 million, Clean Max Enviro Energy Solutions at $165 million, Amarenco at $150 million, GREW Solar at $118 million, and Radiance Renewables at $100 million.
Solar project acquisitions totaled 18.4 GW – the highest capacity since 2022. Developers and independent power producers accounted for 11.9 GW of acquisitions, followed by investment firms and infrastructure funds at 3.8 GW. Utilities acquired 830 MW. The quarter included 28 corporate mergers and acquisitions transactions.
“Improved policy clarity and strong demand led to an increase in solar funding and M&A activity in Q1 2026,” said Raj Prabhu, CEO of Mercom Capital Group. “Investments remained focused on assets that can advance in the near term, as projects moved forward following earlier policy and financing uncertainty, and developers accelerated timelines ahead of tax credit milestones.”
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