Global investment in renewable energy projects climbed 10% in the first half of 2025, even as financing for utility-scale solar fell sharply, according to data released by Bloomberg New Energy Finance (BloombergNEF).
Total investment reached $386 billion between January and June, supported by growth in offshore wind and small-scale solar projects. Utility-scale solar, by contrast, saw the largest decline of any renewable technology, falling 19% year-on-year, the report said.
The United States posted the steepest regional drop, with investments down $20.5 billion—or 36%—compared with the second half of 2024. BloombergNEF linked the slowdown to policy uncertainty following Donald Trump’s election, after developers rushed to launch projects late last year. The European Union, meanwhile, recorded a 63% increase, a $30 billion rise that the firm said could “support 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 BloombergNEF. “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.”
BloombergNEF highlighted declines in utility-scale investment in China, Spain, Greece and Brazil, where curtailment and negative power prices have weighed on project economics. “Concerns over revenue were paramount for investors,” the report said.
A separate July study by Mercom Capital pointed to a 39% fall in corporate investment in the global solar sector, citing “a wave of legislative, trade and capital market disruptions.”
China, the world’s largest solar market, has seen monthly photovoltaic (PV) installations cool in recent months. July additions totaled 11 gigawatts, down 48% from a year earlier, as new pricing reforms dampened growth.
By contrast, small-scale solar projects gained momentum. BloombergNEF said investment in smaller systems almost doubled in China year-on-year, offsetting a 28% fall in utility-scale activity. “These projects are quick to deploy and can be brought online ahead of significant policy shifts that impact revenues or returns,” the report noted.
Annex said developers are adjusting capital deployment in line with returns. “Renewable energy investors and developers are rethinking capital allocation and putting their money where project returns are strongest,” she said.
Offshore wind investment also strengthened, with $39 billion committed in the first half of 2025, surpassing the $31 billion invested in the whole of last year. The UK led activity in the sector, including Orsted’s $608 million sale of a 24.5% stake in its West of Duddon Sands project and the $4.3 billion closing of the Inch Cape Offshore Wind Farm, one of the largest deals globally.
