According to a report by BloombergNEF (BNEF), global investments in renewable energy projects reached $386 billion in the first half of 2025, representing a 10% increase compared to the same period last year. Growth was driven primarily by the offshore wind sector, while investments in utility-scale solar and onshore wind projects declined. 

Investments in utility-scale solar power plants fell by 19% compared to H1 2024. The sharpest declines occurred in markets such as mainland China, Spain, Greece, and Brazil, where investors faced growing challenges from curtailments and episodes of negative electricity prices. Investor activity remained higher in markets with well-structured government auctions or strong corporate demand. 

The decrease in funding for large-scale projects was partially offset by a surge in small-scale solar investments. For example, in mainland China, investments in residential and commercial solar systems nearly doubled year-on-year. 

Among major regions, the largest decline in new renewable energy investments occurred in the United States, where total investments dropped to $20.5 billion, down 36% compared to H2 2024. Analysts attribute this to the industry’s reaction to the 2024 U.S. election results and growing uncertainty around tariff policies. 

In contrast, EU-27 countries saw investments increase by $30 billion — a 63% jump compared to H2 2024. In Southeast Asia, investments rose by 7%. 

Mainland China remained the world’s largest market, accounting for 44% of global new renewable energy investments in H1 2025. 

Comment from the Investment Division of M24 SunShine: 

Although total global renewable energy investments increased, the composition of these flows raises concerns. The decline in utility-scale solar and onshore wind financing signals growing issues with project profitability and grid integration, especially in markets with overloaded generation and volatile pricing. The 36% drop in U.S. investments is particularly alarming given its role as a key global market. Growth in small-scale projects does not fully offset the slowdown in large-scale development, especially in the context of decarbonization targets.