HANetf : Growth in the solar energy industry is surging with record installations in the US and European Union despite supply chain and raw material issues taking the heat out of the pace of expansion, says the Solar Energy UCITS ETF (Ticker: TANN), Europe’s first pure play solar energy ETF.
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- US installed capacity growth beats forecasts despite supply chain and raw material issues
- EU sees record installations in 2021 and growth continues with Germany and the Netherlands the hot spots
- Solar industry will benefit from an avalanche of activity if US Senate passes Build Back Better Bill, Europe’s first pure play solar energy ETF TANN says
Last year was the best on record for installations in the EU following a 34% increase in capacity connected to the grid and the EU Market Outlook for Solar Power 2021-2025 report predicts growth will continue doubling to 327.6 GW from the current 164.9 GW.
The US faces supply chain constraints, says The Solar Energy ETF (Ticker: TANN) which is distributed on the HANetf platform, but still saw installed capacity jump 33% in the third quarter of 2021 which was a record for the quarter, according to TANN which is scheduled under Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Installations in the US is forecast to grow 25% slower than expected this year partly because of supply chain problems which have been worsened by disruptions to solar shipments caused by a petition to the US Department of Commerce asking for tariffs to be extended to Thailand, Malaysia, and Vietnam. The petition has now been dismissed.
Growth in the US could accelerate this year if the US Senate passes the Build Back Better Bill. Energy consultant firm Wood Mackenzie forecasts it would mean an additional 43.5 GW of solar capacity over the baseline forecast between 2022 and 2026 trebling US cumulative solar capacity.
Germany remains the biggest market for solar in the EU with expected installations last year rising 8% but the Netherlands leads on installations per capita with a 42% increase in 2021. SolarPower Europe data shows strong support for solar across the EU with all countries expected to reach solar goals by 2030 or earlier. Estonia and Latvia have already done so while Poland, Ireland and Sweden will do so this year.
Jane Edmondson, manager of the Solar Energy UCITS ETF (TANN) says: “The global solar industry would be a major beneficiary of the US Build Back Better plan, if it is passed into law.
“This historic legislation features the most ambitious and transformational clean energy policies ever considered by the US. It includes a 10-year extension of the solar Investment Tax Credit with direct pay, significant domestic manufacturing incentives, tax credits for energy storage and transmission, workforce development provisions and a suite of additional policies that will help America lead the world’s transition to a clean energy economy.”
The Solar Energy ETF (TANN) which has a TER of 0.69%, tracks the EQM Global Solar Energy Index which is focused on companies that derive significant revenue from solar energy-related business operations including manufacturing of photovoltaic, solar cells, and systems, producers of solar power generation, equipment, and components, providers of solar power system installation, development, and financing, and manufacturing of solar-powered charging and energy storage systems. The index is up 12.06% in the 12 months to November 30th 2021.
Source: ETFWorld.co.uk
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