Despite the worldwide financial crisis and a lack of political action on climate change, there’s some good news: global investment in clean energy has reached its highest amount ever at $260 billion. The news comes from data in the Bloomberg New Energy Finance (BNEF), which monitors investments made in clean energy. According to BNEF, there’s been a 5 percent increase in worldwide clean energy investment since 2010.

In 2010, the United States invested a total of $56 billion in clean energy while China invested a little over $47 billion. With the increase, the United States has regained its position as the world’s leader in clean energy investment, knocking China off the podium for the first time since 2008.

Numbers from other parts of the world are also encouraging. India saw the biggest jump in investment—over 50 percent—to more than $10 billion. Brazil also significantly boosted its investment to over $8 billion—a 15 percent increase. The average increase in clean energy investment throughout Europe was 3 percent, adding up to $100 billion in total investment.

Utility-scale renewable energy projects lead the way

The BNEF report revealed that large utility-scale projects receive the most investment—rising from $138 billion in 2010 to nearly $146 billion in 2011. For example, 29 U.S. states now require power companies to source a portion of the energy they sell from renewable sources, increasing the amount of investment in large utility-scale clean energy projects across the country.

The rise of solar power

The solar power industry benefited from a huge increase in investment in 2010, reaching a total of nearly $137 billion—over a third more than in the previous year. Why? A 50 percent price reduction photovoltaic solar panels led to a boost in installations, which pumped money into the industry and created interest from private investors.

But the last couple years haven’t always been sunny for solar. China built a $354 million solar thermal plant last year, and instead of buying materials from the U.S. or Europe, it used its own cheaper technology to do it. Unfortunately for some solar energy companies, that led to disappearing profit margins and bankruptcy. Two German companies, Solon SE and Solar Millennium, were ruined, along with U.S. companies Solyndra, SpectraWatt, and Evergreen Solar.

Wind power takes a hit

Wind power also had a rough year in 2011, with overall investment dropping by 17 percent to less than $75 billion. At the beginning of 2012, the world’s largest turbine maker, Vestas Wind Systems, announced that it would have to stop production at one of its factories and reduce its workforce by 10 percent, or 2,335 people. According to Vesta, it’s due to increasing competition from Chinese manufacturers.

But it’s not all doom and gloom for wind. The world’s largest offshore wind farm opened off the coast of England in September 2010, and with a total of 100 turbines, can generate enough energy to power 200,000 homes. Germany built a 288-megawatt offshore wind farm for just over a billion dollars and Canada constructed a 272-megawatt wind farm for $756 million.

Olivia Bruman is a freelancer and sustainability advocate. Working on behalf of a variety of clients including an eco-friendly import car insurance service and a handful of green blogs, she cares passionately about her impact on the world.

Despite the worldwide financial crisis and a lack of political action on climate change, there’s some good news: global investment in clean energy has reached its highest amount ever at $260 billion.