Bottom Line

• The Invesco Solar ETF (TAN) offers a potential trading opportunity for a 4% gain over the coming weeks.
• TAN appears poised to retest and breakthrough resistance at $43.50.
• On 15 September 2025, I plan enter a One-Triggers-Other (OTO) order to:
  • Buy TAN at a limit price of $42.00, and if that order executes in full, then
  • Activate a secondary order for a $40.50 trailing stop loss

Background

Based on the MAC Global Solar Energy Index, the Invesco Solar ETF invests at least 90% of its total assets in the securities, American depositary receipts, and global depositary receipts that comprise the Index. The Index consists of companies in the solar energy industry. It's calculated using net returns, which consider applicable taxes for non-resident investors. The Fund and Index are rebalanced every quarter.

Recent Development

Investors anticipated that solar stocks would encounter obstacles following President Trump's return to office in January 2025. The situation was further complicated by the passage of the One Big Beautiful Bill Act on July 4, 2025, which aimed to phase out clean energy investments and prioritize fossil fuels. However, on August 15, 2025, the Treasury Department issued guidance stating that solar projects could still qualify for federal investment and production tax credits if a certain level of work were completed before July 2026. As a result, solar stocks surged after the Treasury Department's guidance was issued.

Prediction

Technological advancements, increased production, and innovative financing models are lowering the projected costs of solar energy throughout this decade. Meanwhile, the cost of traditional power is expected to rise. Therefore, the solar industry will likely be able to compete on cost with other energy sources if and when government investment in solar technology is phased out.