Invesco Solar ETF

TAN

Market cap $1.58B

The cost of building solar power projects in the United States has jumped 18% from a year earlier as tariffs, elevated interest ​rates and other cost pressures take hold, but the renewable energy source remains ‌the cheapest form of new electricity generation to build, according to an annual report released on Monday by financial advisory firm Lazard.

While volatile oil prices have taken much of the spotlight in the energy sector this year, increasing global energy security concerns amid geopolitical tensions, soaring data center energy demand, and substantial international investment have propelled clean energy ETF gains in 2026.

A deepening sell-off in chip and memory stocks dragged all four major U.S. equity indexes lower by midday Tuesday.

Invesco Solar ETF (TAN) has evolved into a focused play on utility-scale solar, grid-connected tech, and companies positioned for surging electricity demand. TAN's portfolio now emphasizes large-scale developers and trackers, reducing reliance on the weaker residential solar segment and benefiting from AI-driven energy demand. I maintain a bullish outlook with a technical price target of $89 (+58%), supported by sector fundamentals and the ETF's concentration in top holdings like NextPower and First Solar.

Invesco Solar ETF is downgraded from buy to hold due to less attractive valuation and deteriorating technicals. TAN faces headwinds from lower oil prices, weak share-price momentum, and a strong US dollar, despite solid long-term EPS growth. The fund remains volatile, top-heavy, and exposed to global SMID caps, with 47% international weighting and concentration in Information Technology.

Most major wind and solar developers prepared well in advance of the July 4 deadline, with many locking in legacy Section 48E investment tax credits and Section 45Y production tax credits last year. Between 2026 and 2030, solar developers plan to add roughly 288 GW of utility-scale capacity, while wind developers intend to build over 80 GW, according to S&P Global Market Intelligence data.

A reported draft U.S. ban on foreign-made inverters would deter cheap competition.

Trump administration policies that have stalled permits for renewable energy projects are putting more than $121 billion of investment at risk and slowing development of ​wind, solar and storage capacity needed to meet rising power demand, according ‌to a report published on Monday.

Solar bulls love to point at the 12-month chart for Invesco Solar ETF (NYSEARCA:TAN) and call it a comeback story.

If you own the Invesco Solar ETF (NYSEARCA:TAN) because you wanted exposure to the energy buildout behind artificial intelligence, the thesis deserves a second look.