Renewable energy investments achieved a new high in the first half of 2025, totaling $386 billion, which marks a 10% increase compared to the same period last year. However, the asset finance for large-scale solar and onshore wind projects saw a decline of 13%, attributed to challenging policy conditions in key markets. Investors are now focusing on sectors with the strongest returns, which has influenced shifts in investment patterns, notably towards offshore wind.
In the United States, investments in renewables decreased by 36%, while EU-27 countries experienced a 63% increase in investments. This shift highlights a growing disparity between the two regions, exacerbated by recent federal actions, including President Donald Trump’s stop-work order on the largely completed Orsted’s Revolution Wind farm. Global solar investments for the first half of 2025 reached $252 billion, while wind investments totaled $126 billion, significantly driven by offshore projects. Small-scale solar financing dominated during this period as utility-scale project funding fell by 22% compared to last year. Key markets experiencing the most significant year-on-year declines in utility-scale solar investments include mainland China, Spain, Greece, and Brazil, where issues like increased power curtailment and exposure to negative power prices have been notable.