Investment in renewables hits record US$386 billion

Global investment in new renewable energy development reached a record US$386 billion during the first half of 2025, despite lower investment levels in the US.

According to BloombergNEF’s Renewable Energy Investment Tracker, the growth in renewables investment was largely driven by global offshore wind and small-scale solar in the first half of this year, while utility-scale solar saw 19% less investment.

In mainland China, for example, small-scale solar investment nearly doubled year-on-year while utility-scale solar installations received 28% less funding.

Small-scale solar makes up for utility-scale investment drop

For BNEF, the preference for small-scale solar can be explained by their fast deployment, meaning their success is less vulnerable to policy shifts that could impact future returns. Utility-scale solar, on the other hand, may have suffered from negative power prices, particularly in China, Spain, Greece and Brazil – the markets that saw the greatest decline in investment – signalling investor concerns over revenue.

Utility-scale solar investor activity was stronger in markets with supportive government auctions or strong corporate energy demand.

Offshore wind attracts record investments

Offshore wind projects attracted US$39 billion in the first half of 2025 – more than the total US$31 billion raised in 2024. However, BNEF warns that large swings in investment over time are natural in this sector, which is driven by large projects and the schedule of government auctions. 

Overall, asset finance for utility-scale solar and onshore wind was down 13% of US$20.5 billion year on year in the first half of this year. 

“Renewable energy investors and developers are rethinking capital allocation and putting their money where project returns are strongest,” said Meredith Annex, Head of Clean Power at BloombergNEF. “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.”

EU investment remains strong while US declines

Investment in the US alone fell 36% as investors started to “recalibrate” to the country’s less favourable policy landscape. In contrast, the EU saw investment in the first half of 2025 rise by nearly US$30 billion, or 63%, compared to the second half of 2024. 

This suggests that companies are reallocating capital out of the US and into Europe – particularly in offshore wind, BNEF explains.

Mainland China remained the largest market, making up 44% of global renewable energy investment in H1 2025.