Global Renewable Energy Investment Hits Record $386 Billion in First Half of 2025
Global investment in new renewable energy projects reached a record $386 billion in the first half of 2025, a 10% increase from the previous year, driven by growth in offshore wind and small-scale solar. However, asset finance for utility-scale solar and onshore wind declined by 13% year-on-year, with notable investment drops in China, Spain, Greece, and Brazil due to concerns over revenue and policy changes.[2]
States Fast-Track Renewable Energy Permits to Beat Looming Federal Tax Credit Deadline
US states are expediting permitting and contract processes for wind and solar projects to ensure developers start construction before the expiration of key federal tax credits in July 2026. This rush follows the rapid phase-out of incentives under recent federal policy changes, with state leaders prioritizing grid connections and regulatory approvals to avoid losing essential project financing.[5]
IRS Issues Updated Guidance on Clean Energy Tax Credit Eligibility
On August 15, 2025, the IRS released Notice 2025-42, clarifying that wind and solar projects must begin construction before September 2, 2025, to use the 5% Safe Harbor provision for tax credits, now limited to facilities under 1.5 MW. Projects placed in service by December 31, 2027, or that began construction before the cut-off, retain eligibility, but most large-scale wind and solar projects face stricter requirements for credit qualification.[6][4]
US on Track for Record Year in Clean Power Additions—93% from Renewables and Storage
According to the US Energy Information Administration, developers plan to add 64 GW of new generation in 2025—93% of it from wind, solar, and battery storage, with over half from solar. Retirements of coal and gas plants are also accelerating, with 12.3 GW expected to close this year, marking a 65% increase in retirements over 2024.[3]
Renewables Projected to Meet 90% of Global Electricity Demand Growth in 2025
An IEA report anticipates that renewables, especially solar, will provide 90% of global electricity demand growth in 2025, with solar and wind expected to reach 17% of the global energy mix this year. Variations by region are significant: US solar generation grew 30% in the past year, while Europe’s renewables are forecast to increase just 2% due to slow wind speeds, though low-emissions sources are still on track to cover over 75% of Europe’s mix by 2026.