Global investment in renewable energy projects reached an unprecedented $386 billion in the first half of 2025, marking a 10% increase compared to the same period last year, according to BloombergNEF. This surge in funding was driven by growing interest in offshore wind and small-scale solar projects, despite challenges posed by the rollback of subsidies in the United States under former President Donald Trump.
BloombergNEF’s latest Renewable Energy Investment Tracker highlights a robust global momentum, with $39 billion allocated to offshore wind projects between January and June 2025, significantly surpassing the $31 billion spent throughout all of 2024. In contrast, the United States experienced a notable decline in renewable energy investments, with a 36% drop compared to the latter half of 2024. This decline can be attributed to many investors rushing to start projects before the federal elections in 2024 to secure tax credits, only to be met with a reduction in subsidies from Trump’s administration.
Investment in the European Union saw a remarkable increase of 63% during the first half of 2025 compared to the second half of 2024, totaling over $30 billion. Germany and France reported their highest solar investments since the financial period of 2011/12. Italy and Romania also increased their solar funding, largely due to favorable auction mechanisms.
In contrast, the U.S. market has seen a significant exodus of capital, with many companies reallocating funds to Europe, especially in offshore wind development. BloombergNEF noted that several developers have shifted their focus to North Sea projects instead of U.S. sites. Investors in the U.S. solar sector have increasingly turned their attention to China and Saudi Arabia, where utility-scale solar projects remain highly attractive.
Meredith Annex, head of clean power at BloombergNEF, stated, “Renewable energy investors are reconsidering where to allocate their capital, focusing on areas with the strongest project returns.”
The overall rise in global renewable energy investment was primarily fueled by offshore wind and small-scale onshore projects. However, utility-scale solar photovoltaic (PV) investment saw a decline of 20% year-over-year. Investors have become cautious in markets such as China, Spain, Greece, and Brazil, where rapid utility-scale solar growth outpaced the necessary grid infrastructure and energy storage developments. This has led to increased curtailment rates and negative power prices in regions lacking long-term revenue certainty.
As a response, utility-scale solar developers are exploring markets with supportive government auctions or strong corporate demand for renewable energy. Alongside this, small-scale solar project investments in China nearly doubled year-over-year, contributing to a global record of $159 billion in small-scale solar investments. The European Union emerged as a key market outside of China.
The UK continued to lead in offshore wind investment, with notable projects like the Red Rock and ESB Inch Cape Offshore Wind Farm, which was the second-largest disclosed deal globally in the first half of 2025, valued at around $4.3 billion. The only project with a larger investment was Poland’s PGE and Ørsted Baltica 2 Offshore Wind Farm, valued at approximately $7.2 billion. The Inch Cape Offshore Wind Farm, located about 20 km off the coast of Angus, Scotland, received a Contracts for Difference contract in 2022 and is expected to begin operations by the end of 2026, with full commercial operation anticipated in 2027.
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