TAN, PBW, and ICLN gain 27-31 percent year-to-date as solar becomes the cheapest bulk power source at $39 per MWh.
Clean energy ETFs have rebounded sharply in 2026, with TAN and PBW rising 28 percent and 31 percent year-to-date, respectively. ICLN has climbed 27 percent, recovering from a 45 percent decline between 2022 and 2024 that left the sector priced for abandonment.
The rally follows a shift in demand dynamics, driven by AI data centers securing solar power through long-term agreements. Solar is now the cheapest new bulk power source at $39 per MWh, outpacing prior policy-driven cycles.
Unlike past rebounds tied to temporary policy support, this surge reflects structural changes, including sustained capital inflows and reduced skepticism about the sector’s viability.