Renewables Push Through Headwinds
The 2025 Trends: Renewable Energy and Solar Research Report, published by RatedPower in February 2025, was a comprehensive analysis of the global renewable energy sector. Drawing on data collected through 2024 and survey responses from more than 140 industry professionals, the report shows an industry that is advancing through policy reform, technological innovation and rising investor confidence (1).
What the Report Is About
Though now a few months old (which shows you how quickly this space is moving), the report explores how renewable energy is maintaining its momentum despite global uncertainty. It examines investment flows, technology trends, workforce challenges and the regional outlook for 2025 and beyond.
According to the report, in 2024, global energy investment exceeded 3 trillion US dollars, with almost 70 per cent of that directed toward renewables, electric vehicles and nuclear power. Solar PV continues to dominate, attracting more capital than all other generation technologies combined. Installed renewable capacity grew by 666 gigawatts in 2024, driven by expansion in China and the European Union.
The report noted that emerging economies outside China received only 15 per cent of global clean energy spending. This point highlights a continuing imbalance in global capital flows. Yet the overall trajectory remains strong. Again in the report, it says clean energy is expected to provide 46 per cent of the world’s electricity by 2030, up from 30 per cent in 2023.
Key Takeaways
RatedPower summarised its findings with several key data points that capture the industry’s direction and sentiment:
93.7 per cent of respondents rated their confidence in the renewable energy sector’s future at four or five out of five.
60.1 per cent of respondents identified grid saturation and instability as the top challenge, compared with 66.7 per cent the previous year.
48.3 per cent of respondents believe storage has the greatest growth potential over the next five years, followed by solar at 30.8 per cent.
Bifacial modules dominated simulations in 2024, accounting for more than 91 per cent of all projects and reaching a record 94.46 per cent in the December quarter.
Hybrid plants represented between 11 and 28 per cent of simulations through 2024.
String inverters were used in more than 60 per cent of simulations, continuing their steady rise, while central inverters remain the standard for plants exceeding 100 megawatts (RatedPower, 2025).
Key Findings and Insights
1. Confidence Returns to the Sector
Industry confidence is exceptionally high, with nearly all participants expressing a positive outlook. Respondents expect the United States, China and Australia to lead renewable growth in 2025, supported by strong policy measures, technological development and growing private investment.
2. Grid and Policy Reform Remain Central
Grid instability and connection delays continue to slow renewable expansion, although sentiment has improved compared with 2024. The report estimates that more than 3 trillion dollars in grid investment will be required by 2030 to meet demand. Permitting efficiency and clearer government policy are beginning to have an effect, particularly in India and China. However, many respondents still see uneven public incentives as a barrier to maintaining project momentum.
3. Efficiency and Cost Trends Strengthen
The rapid global adoption of bifacial modules and tracker structures reflects a more sophisticated and efficiency-focused industry. (Note: Unlike conventional solar panels, bifacial solar panels have photovoltaic cells on both the front and rear of the module. By utilising more of the available surface area for electricity generation, bifacial solar panels can produce more power from ambient sunlight than a conventional monofacial PV module).
Trackers now feature in around 60 per cent of installations, delivering performance gains of 15 to 20 per cent, while bifacial panels add up to 20 per cent more generation capacity. These design improvements are helping to reduce overall system costs and enhance long-term project economics.
The report notes that inverter trends are also shifting. String inverters now represent most of the market, driven by their flexibility and cost advantages. Central inverters remain critical for larger projects, particularly those exceeding 100 megawatts, which require higher power capacities and centralised management.
4. Storage Becomes the Next Growth Engine
Energy storage is now considered the most significant opportunity for growth. Battery Energy Storage Systems (BESS) are seen as essential for stabilising grids and improving renewable dispatchability. Hybrid solar plants that combine generation with storage now account for more than one in ten projects globally. Most systems continue to use AC-based storage, although DC configurations are becoming more common as project design software evolves.
Falling battery prices and rising energy density are improving the economics of storage projects. Components such as lithium iron phosphate and nickel manganese cobalt are now significantly cheaper, and next-generation battery technologies are expected to double energy intensity within five years.
5. Emerging Technologies Drive Innovation
New renewable technologies such as agri-PV, floating solar and offshore wind are progressing from trial to commercial adoption. The report says that agri-PV is helping to integrate solar generation with farming operations, while floating solar offers an alternative in markets with limited land availability. Offshore wind continues to attract attention for its high capacity factors and reduced land use, though capital and maintenance costs remain high.
Digitalisation is also transforming the industry. Artificial intelligence, predictive analytics and digital twins are being deployed to optimise site selection, forecasting and maintenance. These technologies are improving reliability and reducing operational costs across renewable systems.
6. Global Growth Markets
The report highlights several regions with strong potential for expansion. The United States remains the top growth market, supported by significant policy frameworks and vast land availability. China continues to lead in manufacturing and project delivery. India’s clean energy expansion is accelerating through its national production-linked and public-sector programs.
The position of the US may come as a surprise for most readers. So is it still at the “top”? In our view, ‘Yes’, but with an asterisk. The US remains a “core but cautious” market rather than an untouchable “no-risk star” market. The fundamentals (resources, scale, and investment flows) are in place, but the policy and regulatory backdrop has become more unstable.
Australia is identified as one of the fastest-growing markets, supported by its large-scale solar and wind potential, favourable policy direction and expanding project pipeline. Brazil, Spain and Saudi Arabia also show strong potential due to improvements in grid capacity and local policy support.
What It Means for Investors
The RatedPower 2025 Trends Report shows that globally renewables have matured into a mainstream asset class. Falling costs, increasing policy stability and strong technological progress are creating a more dependable environment for long-term investment.
For investors, three themes stand out:
Energy storage is becoming central to the next stage of value creation.
Technology and digital solutions that enable predictive analytics and smarter grid management are set to drive the next phase of growth.
Diversification across regions and technologies will help balance exposure and optimise returns.
Industry confidence, coupled with steady cost reductions and innovation in hybrid systems, signals that the next phase of capital inflows into renewables is already underway.
The Bottom Line
The RatedPower 2025 Trends Report confirms that renewables are not only resilient but also gaining strength. Solar remains dominant, storage, as we know, is emerging as the next major investment theme, and digitalisation is enhancing efficiency across all stages of project development. As we have mentioned on numerous occasions, the global energy transition is no longer a future goal, but an accelerating transformation. For investors, this represents one of the most compelling opportunities of the decade.
References
(1) RatedPower 2025 Trends: Renewable Energy and Solar Research Report, Published February 2025. https://to.ratedpower.com/ebooks/solar-research-report/
Important Information
EnviroInvest Pty Ltd ACN 685 107 957 (“EnviroInvest”) is an Authorised Representative of Daylight Financial Group Pty Ltd ACN 633 984 773 (“DFGPL”), holder of AFS Licence No. 521404.
Information in this commentary is current as at the date prepared unless otherwise stated. Investments can go up or down in value, and past performance is not a reliable indicator of future performance. For more Important Information please refer to the Disclaimer section of this website.
This communication may contain general financial product advice prepared without taking into account your personal circumstances. You should consider its appropriateness in light of your objectives, financial circumstances and needs before acting on it.
If our advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) before making any decision.