European solar startup funding at the end of the second quarter of 2023 is up 414 percent compared to the same period last year. In Q2, companies received $6.53 billion compared to the $1.27 billion they raised by the same time previous year. Globally, solar startups saw an increase by 50 percent in funding – having reached $19.1 billion – with the US market holding up steady, a new report by Avnet Abacus reveals.
- Europe’s solar startups rose $6.53 billion in the first six months of 2023, 414 percent more than the same period in 2022.
- Confidence in solar remains strong amid global venture funding drop.
- In six months, companies received nearly as much as the whole of last year.
Avnet Abacus is one of Europe’s leading electronic components distributors and analyzed Crunchbase data listed under the solar category to provide insight into the level of investment activity. While global venture funding saw a 49 percent drop in investments compared to last year’s Q2, confidence in solar remains strong.
Commenting on the study’s findings, Dr. Sara Ghaemi, Avnet Abacus’s Technical Director, says: “Even though solar technology is relatively mature, there is still a lot of room for growth and innovation. There is a growing demand worldwide, and government policies and incentives continue to support investment in this area, with engineers continually seeking new ways to make solar more efficient.”
Europe solar startups raised nearly as much as last year
In 2022, Europe’s solar startups raised $7.2 billion, the highest year on record, almost quadrupling the previous peak of $1.9 billion in 2021. Since the start of 2023, solar startups have received $6.53 billion – 91 percent of what they rose last year – with six months to go.
This year’s average investment in European solar is $141.9m, compared with an average of $88.3m in 2022 and $22.9m in 2021. The average amount going into US solar startups in 2023 is $121.6m, peaking above last year’s average of $118.1m. Globally, this year, the average amount of funding going into solar firms sits at $116.1m compared with 2022’s average of $93.2m.
Who is raising
Among the startups receiving investment this year are rooftop solar panel manufacturers and installers for residential homes and garages, as well as buses, lorries, and other commercial vehicles. To ensure the efficient use of PV panels for the home, ventures are offering solar-powered home energy storage solutions, wall boxes, and intelligent energy management systems, raising funds this year.
On a larger scale, there are companies gathering investment for solar parks, including using farmland via agrivoltaics, and firms offering to develop, construct and maintain solar power plants and integrate solar power into industrial operations. There are also companies developing solar panel materials to enhance the efficiency of the cells while making the panels more flexible and aesthetic.
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