Solar PV attracted $554 billion in 2024, the strongest annual increase among renewables, according to IRENA
It represented nearly 70% of renewable energy investment, supported by falling costs and policy momentum
Major markets— – China, the US, and Europe— – captured most new solar capacity and financing
Supply-chain investment for solar manufacturing slumped, while battery investment more than doubled YoY
In 2024, the global investment in energy transition totaled $2.4 trillion, representing a 20% increase over the average annual levels of 2022/2023 at $662 billion. Of this, about 1/3rd, or $807 billion, was directed towards renewable energy, according to a new International Renewable Energy Agency (IRENA) report. Global investment in solar PV hit a record $554 billion in 2024, up 49% year-on-year (YoY).
“Solar PV is the only renewable energy technology for which current investment levels are almost in line with IRENA’s 1.5°C Scenario, with 2024 investment levels within close distance of the annual average needed through 2030,” reads the report referring to the 49% annual increase in investments in this technology to $554 billion – 69% of overall renewable energy investments in 2024. This was over 3x the amount invested before the COVID-19 pandemic in 2018/2019. Falling costs and rising policy support globally are the main drivers for the increased levels.
Together, solar PV and onshore and offshore wind secured a combined 93% of the total. Of the total renewable energy investment, 96% or $776 billion went to the private sector. Only 1% or $10 billion was allocated to end-use applications for direct use of renewables in heating and transport.
While there was a 7.3% annual increase in renewable energy investments last year, the pace of growth slowed compared to the 32% growth recorded in 2023 when investments hit $752 billion, according to IRENA.
Investment in onshore and offshore wind, on the other hand, needs to be scaled up by 3x and 8x over the 2025-2030 period compared to 2024 levels, while in solar thermal (including CSP) it must increase by 32x. Hydropower investments need to expand by 4x, 6x for bioenergy, and 29x for geothermal.
In solar PV technology, the annual investment in solar PV factories registered a decline of 72% YoY to $24.5 billion, but it rose by 112% to $74.5 billion for batteries. Overall, energy transition supply chain investments last year dropped by 21% to $102 billion, with China accounting for 76% of the total, followed by 10% in the US and 8% in Europe.
China, the US, and Europe were the dominant solar markets, together accounting for 78% of additional PV deployment and 70% of investments in 2024.
Overall, the report shows continued and heavy concentration of investment in the energy transition at 90% in advanced economies and China, points out IRENA.
“Investments in energy transition continue to grow but not at the pace needed to achieve the global goal of tripling renewable capacity by 2030. Funding for renewables is soaring but remains highly concentrated in the most advanced economies,” said IRENA Director-General Francesco La Camera. “As countries gather at COP30 to advance the ‘Baku to Belém Roadmap to 1.3 trillion’, scaling finance for emerging and developing countries is essential to make the transition truly inclusive and global.”
Released ahead of the UN Climate Conference COP30 in Brazil, the IRENA report is titled Global Landscape of Energy Transition Finance 2025. The complete report is available on IRENA’s website for free download.