The S&P Global Clean Energy index enjoyed a 300% rally between January 2019 and January 2021 on the back of euphoria surrounding renewable energy investment. However, renewable energy funds then suffered a painful bear market from 2021 until early 2025, impacted by the sharp increase in the cost of debt funding and then a US shift away from clean energy with the November 2024 re-election of Donald Trump.

Since April, we have seen a recovery take place in renewable energies and particularly in solar power, with the S&P Global Clean Energy Index rising 50%. Lower interest rates combined with strong growth in electricity demand from AI-dedicated data centres and from electrical vehicles have led to a resurgence in demand for low-cost sources of energy. Today, solar energy represents a key source of low-carbon electricity in the EU. Thematic ETFs and funds are an effective way to invest in renewable energy generally, or in solar energy specifically.