For the first time ever, global investments in cleantech are projected to outpace upstream oil and gas spending in 2025, according to a new S&P Global Commodity Insights report.

Cleantech investments are expected to hit $670 billion in 2025, with solar leading the charge. Solar PV systems alone will account for half of those investments and two-thirds of all new installed capacity. But while this milestone signals a huge shift in the energy landscape, the report warns it’s still not enough to meet climate goals.

Eduard Sala de Vedruna, head of research, energy transition, sustainability & services at S&P Global Commodity Insights, said:

The new year 2025 is not only bringing to the clean energy sector significant transformations that are reshaping energy production and consumption, but it promises to be pivotal for the clean energy sector, with significant advancements in corporate clean energy procurement and the integration of AI in energy management.

Here are five key trends from S&P Global’s “Top Cleantech Trends for 2025” report that highlight where we’re headed – and where there’s still work to do.

Cleantech investments outpaces fossil fuels in 2025

In 2025, renewable energy investment will finally overtake fossil fuels. Solar PV is the star of the show, driving most of this growth. However, there’s a catch: To stay on track with global climate targets, renewable energy capacity needs to triple by 2030.

The report also points out that capital efficiency varies dramatically. For instance, China can deploy almost double the gigawatts per dollar compared to the US.

China’s dominance in cleantech supply chains faces challenges

China produces the lion’s share of solar panels, wind turbines, and battery cells, but that dominance might begin to wane. By 2030, China’s market share in PV module production is expected to dip to 65%, and battery cell manufacturing to 61%.

Oversupply from China has pushed prices down for years, but the report suggests those price declines could level off in 2025. Meanwhile, a slowing Chinese economy could complicate the country’s ability to maintain its massive supply chains.

Batteries are reshaping the grid

Battery energy storage is becoming essential for making renewable energy projects financially viable. In markets with high solar and wind penetration, a phenomenon called “cannibalization,” where excessive midday energy production drives prices down during peak production times, makes it harder for new projects to develop.

Adding battery storage helps smooth out these price swings, allowing developers to store excess energy and sell it when prices rebound. Expect batteries to play a bigger role in keeping renewables competitive.

AI steps in to optimize renewables

Artificial intelligence is emerging as a game-changer in clean energy. AI tools are improving renewable energy forecasting, helping grid operators better manage fluctuations in power generation.

For instance, the report highlights how AI-powered trading apps are reducing the risks caused by big gaps – sometimes up to 700% – between forecasted and actual energy generation. But while AI offers huge opportunities, it also brings risks, including cybersecurity concerns and ethical challenges.

Data center demand for clean energy skyrockets

Data centers, the backbone of the internet, are doubling down on clean energy. By 2030, they’re expected to source 300 terawatt-hours (TWh) of renewable power annually, up from 200 TWh today.

North America is leading this charge, with its data centers projected to account for 60% of global growth. This shift underscores how major tech companies are investing in the clean energy transition.

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