Sustainable investments have caught attention in the private equity world in 2024, with a focus on renewable energy – in particular, solar energy. That is despite geopolitical tensions and supply chain constraints challenging the sector.

“Solar energy remains the cheapest form of renewable power and is less challenging to deploy compared to other sources,” William Barrett, co-founder and managing partner at independent fundraising and strategic advisory firm Reach Capital, told PE Hub. “Its implementation is generally more accepted by local communities, making it easier to secure permits and grid connections. However, 90 percent of solar panels in the EU are still imported, primarily from China, which subjects the industry to ongoing geopolitical tensions and supply chain constraints.”

Barrett noted that Western countries’ reliance on Chinese module production poses a “significant risk to the growth of the solar sector,” a concern even highlighted in this week’s US vice-presidential election debate.

But the European energy storage market is projected to grow sevenfold by 2030, creating a cumulative investment opportunity of over €70 billion by 2050, he noted.

Reach Capital, which has offices in Paris, London and San Francisco, expects more power deals in the future.

We feature six recent investments that show PE’s warm feelings for solar energy and other related services. They are in reverse chronological order.

1. GEF Capital-backed Civic Renewables buys Florida Power Management

In September, Civic Renewables, which is backed by GEF Capital, acquired Florida Power Management, a Florida-based solar company.

Civic Renewables is a residential solar installer which operates via subsidiaries Ipsun Solar, Green Rack and Florida Power Management.

Investment interest in the Florida residential solar market has grown over the last few years, as the Solar Energy Industries Association ranks the southern state third in the US for cumulative solar installations, at 16.9GW of total projects.

2. Power Corp’s PSEI invests in California solar and storage project

In August, Power Sustainable Energy Infrastructure and its affiliate Potentia Renewables acquired a 50 percent stake in the Desert Quartzite Solar + Storage Project, located in Riverside County, California.

The project, which is expected to enter commercial operations by the end of the year, was developed by EDF Renewables North America.

The investment was PSEI’s largest to date and built on its inaugural investment in the California utility-scale market last year.

3. PAG makes $200m investment in Canadian Solar

Also in August, PAG agreed to buy $200 million in convertible notes sold by Canadian Solar, a Guelph, Ontario-based solar technology and renewable energy company.

Founded in 2001, Canadian Solar is a manufacturer of solar photovoltaic modules, provider of solar energy and battery energy storage solutions, and developer of utility-scale solar power and battery energy storage projects with a geographically diversified pipeline in various stages of development.

4. LS Power buys AQN’s renewable energy business

In early August, LS Power agreed to acquire Algonquin Power & Utilities’ renewable energy business for up to $2.5 billion excluding debt.

The total consideration consists of $2.28 billion of cash at closing and up to $220 million of cash, pursuant to an earn-out agreement relating to certain wind assets.

The renewables business comprises wind and solar assets located across the US and Canada, including 44 operating assets with over 3,000MW of generating capacity and an 8,000MW pipeline of wind, solar, battery energy storage and renewable natural gas projects in various stages of development. Around 2,700MW of the portfolio’s assets are located in the US, with the remaining 300MW located in Canada.

5. Glentra Capital picks up DVP from Everwood

In June, Glentra Capital bought DVP Solar Worldwide, a utility-scale solar PV and BESS projects developer across Europe and Latin America, from Everwood Capital.

Seville, Spain-based DVP has over 75 employees. It focuses on agrivoltaics, which provide an opportunity to both mitigate the effects of the climate change on agriculture, alleviate concerns about land competition between solar parks and farming activities, safeguard biodiversity, and foster active involvement of local people and businesses, while delivering on cost competitive green power and CO2 emissions reductions, according to a release.

6. Brookfield enters talks to buy majority stake in Neoen

In June, Brookfield Asset Management, together with Brookfield Renewable and Temasek, entered exclusive talks to buy a majority stake in Neoen. The transaction indicates an equity value of €6.1 billion ($6.6 billion) for 100 percent of the shares.

The firm agreed to buy a 53.32 percent stake for €39.85 per share.

Paris-based Neoen is a global renewable energy developer with an 8,000MW portfolio of wind, solar and storage assets in operation or under construction alongside a 20,000MW advanced pipeline of development projects, located in Australia, France and the Nordics.

PE Hub expects to see more solar investment deals in the coming months, as the market drivers that led to these deals are still present.