Global investment in renewable energy reached $327.5 billion (€281 billion) in the first half of 2026, virtually unchanged from the previous six months but 21% below the record set in the second half of 2024.

Data from BloombergNEF (BNEF) show that renewable energy deployment remains on track despite regulatory changes in key markets, including the United States and China. Investment, however, is increasingly shifting toward assets that offer greater flexibility in managing revenues.

Storage drives hybrid projects

Financing for standalone utility-scale solar fell more sharply than investment in onshore wind. Investment in standalone solar PV declined 20% year on year to $75.4 billion (€64.7 billion), its lowest level since the solar investment boom began in 2021.

Growing revenue uncertainty, driven by solar price cannibalization, curtailment and grid congestion, is pushing investors and developers toward more flexible project configurations.

Against this backdrop, co-located solar-plus-storage projects attracted a record $25 billion (€21.5 billion) in investment in the first half of 2026. The figure was nearly double the total recorded in the second half of 2025 and three times the amount invested in the first half of that year. The United States and Australia led investment in the segment.

US accelerates ahead of incentive expiration

The United States was the second-largest market for renewable energy investment, behind China but ahead of the European Union, recording 54% year-on-year growth. Developers accelerated project financing to meet tax credit deadlines and respond to surging electricity demand, driven in part by data centers.

Solar investment rose 41% to a record $45.8 billion (€39.3 billion), while wind investment reached $13.8 billion, more than double the previous year’s figure. Projects that remain eligible for tax credits could sustain construction activity in the short term, with the final installations scheduled through 2030.

European onshore wind holds firm

Global wind investment totaled $92.3 billion, down 27% year on year. Offshore wind was particularly hard hit, with investment plunging 72% amid poor auction results, higher capital and financing costs and a shrinking pipeline of projects likely to reach financial close.

Onshore wind investment declined by a more moderate 4% to $80.7 billion. Europe, however, bucked the trend, with Germany, Romania and Serbia all recording record investment levels following recent auctions.

China accounted for just one-quarter of global investment, down from more than half in 2022, following reforms to its electricity market. By contrast, Vietnam quadrupled its investment, while investment across Southeast Asia surpassed $12 billion. Nigeria increased investment in distributed solar and storage, Central Asia maintained investment above $4 billion, and Brazil helped push global biofuel investment to $7.7 billion.

BloombergNEF expects new renewable energy installations in 2026 to fall below 2025 levels, marking the first year-on-year decline in more than a decade. It expects growth to resume in 2027.