Renewable energy investments climb to record levels in latest BNEF report
Global renewable energy investments reached a new record in the first half of 2025, totaling $386 billion. That marks a 10% increase from the same period a year earlier, according to the 2H 2025 Renewable Energy Investment Tracker released by BloombergNEF (BNEF). Growth was driven mainly by offshore wind and small-scale solar, while investor confidence in large utility-scale projects declined.
Small-scale solar and offshore wind take the lead
BNEF notes that momentum came largely from small-scale solar, with projects faster to build and able to get ahead of regulatory changes that affect revenues and returns. In China, household and commercial solar investments nearly doubled from 2024, while utility-scale projects fell 28% due to new rules exposing them to more volatile energy prices. Offshore wind drew $39 billion in the first half of 2025, already surpassing the $31 billion recorded in all of 2024. The surge reflects both large projects underway and a steady auction calendar that continues to support the sector.
Slowdown for utility-scale solar and onshore wind
Despite the overall record, large-scale renewable energy investments showed signs of weakness. Utility-scale solar dropped 19% from 2024, while onshore wind contributed to a 13% contraction in project finance. Meredith Annex, Head of Clean Power at BloombergNEF, explained that “investors are rethinking capital allocation and shifting funds where returns are more solid.” In markets such as China, Spain, Greece, and Brazil, curtailment and exposure to negative power prices have made large projects riskier.
United States slows sharply, europe accelerates
The geographic breakdown highlights sharp contrasts. The United States posted the steepest decline, down 36% from the previous half-year, a drop of more than $20 billion. The slowdown reflects post-election uncertainty, deteriorating political support for wind, and higher tariff risks. In contrast, the European Union recorded a 63% increase, or $30 billion more, largely driven by North Sea offshore wind. The shift confirms a reallocation of capital from the U.S. to Europe, where revenue support mechanisms are seen as more stable.
China remains the dominant market
China still leads renewable energy investments, accounting for 44% of the global total in the first half of 2025. Despite utility-scale solar struggles, the country reinforced its leadership through explosive growth in distributed solar and expansion of other renewable segments. Emerging regions such as Southeast Asia and parts of Latin America also sustained strong investment levels, pointing more to market consolidation than a new acceleration.
Boom-bust cycles in renewable energy investments
According to BNEF, the future of renewable energy investments will hinge on markets’ ability to provide stable revenue mechanisms. In countries where policies shift quickly, like China or the U.S., boom-bust cycles emerge, with spending surges followed by abrupt declines. Europe offers greater stability through consistent auctions and growing corporate demand for clean power. For the sector, the 2025 record underscores progress but does not erase structural challenges: regulatory uncertainty and profitability of large-scale projects remain central factors shaping investor decisions in the years ahead.