Global investment in new renewable energy projects reached a record $386 billion in the first half of 2025, marking a 10 percent increase from the same period a year earlier, according to data from BloombergNEF’s 2H 2025 Renewable Energy Investment Tracker. Despite this overall rise, asset finance for utility-scale solar and onshore wind fell 13 percent compared with the first half of 2024, representing the lowest share of total investment since 2006.
Utility-scale solar photovoltaic investment was the hardest hit, dropping 19 percent year-on-year. Markets such as mainland China, Spain, Greece and Brazil experienced the largest declines, driven by rising curtailment rates and greater exposure to negative power prices. Conversely, regions with supportive government auctions or strong corporate energy demand maintained stronger investment activity.
In contrast, small-scale solar installations saw significant growth. These projects, which can be deployed quickly and brought online ahead of major policy shifts, nearly doubled investment in mainland China year-on-year, offsetting some of the slowdown in larger developments.
Offshore wind also contributed to the record investment total, attracting $39 billion in the first half of 2025—surpassing the full-year 2024 investment of $31 billion. Large projects and auction schedules drive fluctuations in financing volumes, while elevated project costs outside China have further boosted capital requirements.
Among major regions, the United States saw the sharpest drop, with spending down 36 percent (about $20.5 billion) from the second half of 2024. This decline reflects a rush to commence construction before the end of last year’s federal election cycle to secure tax credits, followed by a slowdown as policy conditions and tariff uncertainties increased.
By comparison, the European Union (EU-27) recorded a 63 percent increase in investment—nearly $30 billion more—between the second half of 2024 and the first half of 2025. This shift indicates significant capital reallocation from the U.S. to Europe, particularly in North Sea offshore wind projects.
Emerging markets largely held their new investment levels, with Southeast Asia up 7 percent and Latin America reaching its highest regional share to date. Mainland China remained the largest market, accounting for 44 percent of global new investment in the first half of 2025.
Source: BloombergNEF
