Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Building Blocks Channel
  2. Sunny Solar View Could Shine on This ETF
ETF Building Blocks Channel
Share

Sunny Solar View Could Shine on This ETF

Tom LydonNov 17, 2021
2021-11-17

The outlook for global solar PV installations is impressive of this year and 2022, indicating that there’s at least one catalyst for renewable energy exchange traded funds to lean on.

That’s good news for the ALPS Clean Energy ETF (ACES). ACES is a diverse ETF — it features exposure to nine green energy concepts — but solar is by far its largest industry weight at 25.47%, as of Nov. 15. In other words, ACES is more than adequately levered to compelling solar installation forecasts.

ALPS Clean Energy ETF

“Global solar PV installations will see double-digit growth in 2021 and 20% growth or more in 2022 and surpass the 200 GWdc barrier for the first time,” according to a new report by the Clean Energy Technology service at IHS Markit. “Total investment in 2022 will be least $170 billion.”

Previously, declining costs were among the factors facilitating increasing adoption of solar power. However, supply chain issues and elevated commodities prices prompted a modest uptick in solar costs this year. Still, burgeoning global demand for renewable energy could be the spark that solar companies need to work past cost concerns.

“Installations in key markets such as China, India, US, and Europe are driving expansion in 2021 and in 2022, with the highest growth coming from the distributed generation segment, led by China,” adds IHS Markit.

That said, political policy remains a potential catalyst or headwind for broader solar adoption. In the U.S. and Europe, the political environment is conducive to more solar acceptance. Additionally, many renewable policies are set at the local and regional levels. Those are pluses for ACES’ solar components. However, emerging economies need to step up their renewables efforts to better fight climate change.

Regarding that effort, coupled with ACES’ solar exposure, there is some good news. Despite this year’s cost increases, solar remains efficient and cost-effective.

“"Despite the two-year impasse in solar PV cost decline, solar continues to be one of the energy technologies with the lowest capex and is the fastest energy source to install," said Edurne Zoco, executive director of clean energy technology at IHS Markit. “Over 1,000 GWdc of new solar installations are expected to be installed [globally] through 2025, driven by solar technology competitiveness, versatility, and installation speed, that will be instrumental to contribute to the decarbonization of the power system this decade.”

Other renewable energy ETFs include the First Trust Global Wind Energy ETF (FAN A+) and the SPDR Kensho Clean Power ETF (CNRG).

For more news, information, and strategy, visit the ETF Building Blocks Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X