Global renewable energy asset finance eases

Global investment in renewable energy reached an all-time high of US$386 billion in the first half of 2025, up 10% year-on-year, according to the 2H 2025 Renewable Energy Investment Tracker published today by BloombergNEF (BNEF).

While overall investment surged, the report highlights a notable shift in capital allocation: asset financing for utility-scale solar and onshore wind fell 13% compared to the first half of 2024, marking its lowest share of total renewable investment since 2006.

“The decline in utility-scale solar and onshore wind financing during the first half of 2025 is taking a toll on project pipelines and likely will continue to do so.”

Key highlights from BNEF’s 2H 2025 Tracker:

Global record, local divergences. Despite record-breaking global investment, large-scale project financing weakened across several major markets. Utility-scale solar PV investment plunged 19% versus 1H 2024, with sharp declines in mainland China, Spain, Greece, and Brazil amid rising curtailment risks and exposure to negative power prices.

Small-scale solar gains ground. Spending on rooftop and distributed solar projects surged as developers prioritised faster, lower-risk installations. In mainland China, small-scale solar investment nearly doubled year-on-year, even as utility-scale installations fell 28% ahead of new regulations linking renewable producers to volatile wholesale power prices.

Offshore wind booms: Offshore wind investment hit US$39 billion in 1H 2025, already exceeding the US$31 billion total for all of 2024. The sector’s growth reflects both the scheduling of government auctions and escalating project costs outside mainland China.

US investment pullback: The United States recorded the sharpest drop, with renewable energy commitments down US$20.5 billion (36%) from the second half of 2024. Developers accelerated projects late last year to lock in tax credits before slowing activity in early 2025 amid policy uncertainty, particularly for wind, and growing tariff risks.

Europe attracts capital: The EU-27 saw a 63% investment surge, adding nearly US$30 billion versus 2H 2024, as developers shifted capital away from US markets into offshore wind projects in the North Sea and other supportive jurisdictions.

Emerging markets hold steady: While most emerging markets maintained their 2024 gains, Southeast Asia posted a 7% uptick in investment, and Latin America achieved its highest share of regional financing to date.

China maintains lead: Mainland China remained the world’s largest renewable investment market, accounting for 44% of global new commitments in the first half of 2025.

Investor sentiment and market dynamics

BNEF’s findings indicate that revenue certainty is increasingly driving capital flows. Markets with stable policy frameworks and clear auction schedules continue to attract investment, while jurisdictions facing shifting policies and exposure to volatile power prices are experiencing boom-bust cycles.

“Markets with supportive revenue mechanisms have maintained momentum,” Annex explained. “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 cycles of rapid acceleration followed by steep slowdowns.”

With global renewable energy funding still climbing but large-scale asset financing tightening, BNEF warns that developers may face delays in project pipelines and greater competition for capital as investors recalibrate strategies to balance risk and returns.

For full data and insights, the 2H 2025 Renewable Energy Investment Tracker is available via the Bloomberg Terminal and bnef.com.