That is according to new data from BloombergNEF (BNEF), which shows that investment reached $386bn (£286bn) in the first six months of this year, up 10% from the same period in 2024.
Offshore wind helped drive growth, attracting $39bn worldwide and exceeding 2024’s total of $31bn, as did small-scale solar investment, which nearly doubled year-on-year in China.
Indeed, mainland China remained the largest market for new investment in renewable energy projects, with 44% of the global share, while the EU saw a rise of nearly $30bn, or 63%, compared to the first six months of 2024.
Of all major regions, the US saw the greatest drop in investment, with committed spending down $20.5bn from the second half of 2024, reflecting the industry’s response to the election of Trump and supporting the idea that companies are reallocating capital out of the US and into Europe.
“Markets with supportive revenue mechanisms have maintained momentum on renewable energy investment,” said Meredith Annex, head of clean power at BNEF. “Whereas projects in markets where revenue certainty is shifting, particularly when it’s down to large swings in policy as in the US or mainland China, are seeing a boom-bust cycle ahead of those changes.”
The data also shows that asset finance for utility-scale solar and onshore wind shrank by 13% in the first six months of this year when compared to the same period in 2024, reaching the lowest share of total investment since 2006.
Utility-scale solar photovoltaic investment was particularly hit, falling 19% compared to the first half of 2024.
The markets that saw the largest year-on-year declines in investment – including mainland China, Spain, Greece and Brazil – have seen rising curtailment and greater exposure to negative power prices, signalling that concerns over revenue were paramount for investors.
Utility-scale solar investor activity was stronger in markets with supportive government auctions or strong corporate energy demand.
“Renewable energy investors and developers are rethinking capital allocation and putting their money where project returns are strongest” Annex continued. “The decline in utility-scale solar and onshore wind financing during the first half of 2025 is taking a toll on project pipelines and likely will continue to do so.”
Image credit: Shutterstock
Graph credit: BNEF
Chris Seekings is the Deputy Editor of ISEP’s Transform magazine, which is published biomonthly for ISEP members. Chris’s role involves writing sustainability-related news, features and interviews, as well as helping to plan and manage the magazine’s other day-to-day activities.
