Private Equity Investment in US Solar Declines as Global Inflows Rebound

Private equity and venture capital activity in the US solar industry is poised to hit a four-year low in 2024, while private inflows into the sector globally have rebounded.

Private equity inflows into US residential and utility-scale solar from Jan. 1 to Nov. 26 amounted to $3.1 billion, about 24.6% lower than the total reached in 2023 and making up just 7.3% of the $42.54 billion amassed in 2021. Only four private equity deals in US solar have been announced thus far in 2024.

Worldwide, deal value in residential solar and utility-scale solar amounted to $25.04 billion, an approximately 52% increase from the $16.46 billion in full year 2023, according to S&P Global Market Intelligence data.

The rising global levels come amid China's solar panel dominance, which has reached oversupply levels. According to a Wood Mackenzie report, the Asian country will continue to hold more than 80% of global solar manufacturing capacity through 2026.

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