Global Renewable Energy Investment Hits Record $386 Billion in First Half of 2025
Global investment in renewable energy reached a new high of $386 billion in the first six months of 2025, marking a 10% increase over the previous year despite a decline in utility-scale solar and onshore wind financing. Growth was driven by strong offshore wind and small-scale solar investments, while U.S. investment fell 36% as capital shifted to Europe and China, which now accounts for 44% of global renewables investment.[1][3]
IRS Issues Stricter Rules for U.S. Wind and Solar Tax Credits
On August 15, 2025, the IRS released guidance that tightens eligibility for federal tax credits on wind and solar projects, limiting the 5% Safe Harbor to low-output solar projects and imposing new deadlines for credit qualification. These changes, mandated by the One Big Beautiful Bill Act, terminate credits for most new wind and solar facilities placed in service after December 31, 2027, and require projects to begin construction before July 5, 2026 to remain eligible.[2][4][6]
U.S. Solar Capacity Additions on Track for Record Year Despite Policy Uncertainty
Developers in the United States are expected to add 33 GW of solar power in 2025, representing about half of all new electricity generation capacity this year, according to the Energy Information Administration. However, looming phase-outs of major federal incentives and new tax credit restrictions threaten to slow future growth.[2]
China Adds 210 GW of Solar in First Half of 2025, Boosting Global Installed Capacity
The China Electricity Council reported that China installed 210 GW of new solar capacity in the first half of 2025, further cementing its role as the global leader in solar power deployment. This surge significantly expands the country’s total installed solar capacity and underpins the global acceleration in renewable energy investment.[7]
U.S. Regulatory Landscape Shifts with Rollbacks on Federal Support for Renewables
The Trump administration enacted several executive orders in 2025 reversing previous climate and energy policies, including halting new federal wind and solar permits, rescinding leasing regulations, and increasing review requirements for renewable projects on public lands. These actions, along with paused and then resumed permitting by the U.S. Army Corps of Engineers, have introduced uncertainty and barriers for new renewable energy developments.