Investment in renewable energy projects in the US has collapsed this year as developers responded to the White House’s policy changes targeting the sector, Bloomberg reports.

According to a public report on Tuesday by BloombergNEF, in the first six months of this year, investment in renewable energy projects in the US fell by $20.5 billion, or 36%, compared to the second half of last year. Investment commitments in wind and photovoltaic projects also fell by 18% at an annual rate. In addition to the change in White House policies, uncertainty about Donald Trump’s tariffs also contributed to this decline, BloombergNEF analysts say, according to Agerpres.

Solar and wind power have become the most important sources of renewable energy generation in the U.S., but their growth has relied heavily on government subsidies. Those subsidies were dramatically cut in Trump’s tax-and-spend bill in July.

The slowdown in renewable investment comes at a time when demand for electricity has exploded, driven by demand from data centers and industrial electrification.

“We’re really starting to see the impact of the new reality in the U.S. on investor confidence,” said Meredith Annex, an analyst at BloombergNEF.

Trump’s disdain for wind power has increased investment risks and prevented any new offshore projects from getting financing this year, the report’s authors said. Wind energy investment fell 67% in the first half of this year compared to the same period in 2024. Spending on onshore projects fell 80% in the first half of this year compared to the second half of last year.

At the same time, investors may redirect capital to more favorable markets, such as the European Union, where renewable investment increased by almost $30 billion in the first half of this year, analysts at BloombergNEF say.