According to new research, total investment in European solar energy startups has risen by 398% compared to the same period last year, with companies receiving $6 billion in funding in the first five months of 2023. The data was analyzed by Avnet Abacus, an electronics distributor that provides consultancy to engineers during product design, using Crunchbase data for companies listed in the solar energy category. They uncovered trends in the total level of investment and average funding round for each region, that showed global investment in the category is up 47%, with funding for the sector down 7% in the US this year. However, European solar energy firms are experiencing an average investment of $166.1 million, surpassing the global average of $116.8 million and US investment of $113.8 million.
Dr. Sara Ghaemi, Technical Director at Avnet Abacus says, solar technology is relatively mature, there is still a lot of room for growth and innovation. There is growing demand around the world, and government policies and incentives continue to support investment in this area while engineers constantly seek new ways to make solar more efficient. Rooftop solar panels have the potential to provide 25% of Europe’s annual electricity consumption. The facade of the buildings can also contribute to the generation of green energy, making the fast deployment and decentralized integration of photovoltaic panels into the energy system attractive.
Despite the uncertainty in the venture capital market, European startups in the solar industry are experiencing significant investment, indicating the growing interest in renewable energy. The trend is expected to continue as government policies and incentives favor renewable energy options and push for a cleaner future.
