Solar Companies Forced To Borrow To Finance Growth

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Solar Companies Forced To Borrow To Finance Growth
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Solar companies raised $12.2 billion across 50 debt financing deals in the first six months of 2024.

Solar companies recorded the highest amount in debt financing in a decade during the first half of 2024, Mercom Capital Group has reported. Solar companies raised $12.2 billion across 50 debt financing deals in the period, marking a 53% increase from the $8 billion raised in 33 deals during the first six months of 2023.

1% in the year-to-date and -42.8% over the past 12 months. Source Mercom Capital Group Interest Rate Cuts Source Y-Charts The renewable energy sector tends to be highly sensitive to interest rates because clean energy developers usually borrow lots of capital upfront to build projects. Further, the cost of electricity generated from renewable energy tends to be impacted more negatively by rising interest rates compared to electricity generated from oil and gas.

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