US Solar M&A Analysis: Deals for Early-stage Assets Bounce Back, While Late-stage Remain Stable

published on 06 October 2024
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M&A Activity for Early-Stage Assets Bounces Back After H2 2023 Dip: The second half of 2023 saw a drop in M&A activity for early-stage assets as rising interest rates and high power prices increased the risk profile of these projects, deterring buyers and stalling deal negotiations. However, activity has picked up in 2024 as power prices have since stabilised and interest rates cuts are already underway

Demand for Late-stage Assets Remains Steady, Driven by PE-backed Companies: Firms like Treaty Oak Clean Energy, and AMPYR Energy have continued targeting late-stage assets, which have secured interconnections and long-term PPAs. Backed by large PE firms, these companies are strategically leveraging their financial strength to enter projects at a more advanced stage, where securing financing is significantly easier and risk is minimized.

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