The clean power revolution has reached a critical tipping point. According to a new analysis by energy think tank Ember, global solar and wind generation has outpaced electricity demand growth this year, marking a monumental shift (as cited in a report from Associated Press).

For the first time on record, renewable energies combined generated more power than coal, driven by a record 31% growth in global solar generation and a 7.7% rise in wind. This surge of over 400 terawatt hours — more than the total global increase in power demand — signals the unstoppable momentum of the clean industry.

This data underscores the massive, long-term growth prospects for clean energy worldwide. As the energy transition solidifies, companies providing the necessary technology, infrastructure, and services are positioned for sustained expansion. Consequently, clean energy Exchange-Traded Funds (ETFs) offering diversified exposure to this global trend represent a potentially profitable long-term investment.

Global Forces Outweigh U.S. Policy Softness 

With the United States being a prominent engine driving the global clean power surge, the recent slump witnessed in its clean energy industry instilled fear in some analysts. The weakness in U.S. renewable sector can be largely attributed to the shift toward anti-climate change policies and regulatory uncertainty under the Trump administration.

The U.S. solar industry installed 7.5 gigawatts direct current (GWdc) of capacity in the second quarter of 2025, reflecting a 24% year-over-year decline and a 28% sequential plunge (as reported by SEIA). On the other hand, wind installations in the nation suffered a 60% year-over-year decline in the second quarter (as reported by Wood Mackenzie).

This dismal performance of the U.S. clean energy industry, largely dominated by solar and wind, can be directly linked to actions like the current administration’s accelerated phase-out of federal tax incentives for new projects, such as those introduced via the Inflation Reduction Act, and regulatory hurdles that complicate development.

However, the latest data published by Ember proves that favorable economic and policy factors in Asia and Europe effectively overpowered the softness in the U.S. renewable sector, amid the robust appetite for clean power worldwide. The falling cost of solar and wind makes them the cheapest form of new electricity in most markets, a factor that transcends national policy. Furthermore, massive demand from new technologies, such as the power-hungry data centers fueling the Artificial Intelligence (AI) boom, is creating an accelerating, policy-agnostic demand floor for renewable generation.

Outlook and Investment Focus

The International Energy Agency (“IEA”) recently reduced its global forecast for renewable power capacity growth by 2030. This downward revision, which is 5% lower compared with last year’s outlook, was primarily due to the policy shifts in the United States and regulatory changes in China, not a decline in the core technology's viability.

Nevertheless, most industry experts remain bullish on the long-term fundamentals of the clean energy transition. Notably, as per the IEA report, despite facing challenges like financial losses due to the supply glut of modules from China, renewable developers have either increased or maintained their capacity deployment targets for 2030 since last year.

For investors, this suggests that the current headwinds may simply present a buying opportunity in a globally resilient industry like clean energy.

ETFs in Focus

The aforementioned dynamics present prospects for investors interested in clean energy ETFs, like those mentioned below, as they capture growth across diversified markets and technologies in an evolving energy landscape increasingly driven by sustainability.

iShares Global Clean Energy ETF ((ICLN Quick QuoteICLN - Free Report) )

As the largest clean energy ETF, ICLN offers broad exposure to leading companies in solar, wind, and other renewable sectors worldwide. It holds net assets worth $1.76 billion.

ICLN has surged 44.9% year to date. The fund charges 39 basis points (bps) as fees. Its volume is good at an average of 3.39 million shares a day.

First Trust Nasdaq Clean Edge Green Energy ETF ((QCLN Quick QuoteQCLN - Free Report) )

It focuses on U.S.-listed companies involved in renewable electricity generation, energy storage, electric vehicles, and those involved in emerging clean energy technologies. It holds net assets worth $532.1 million.

QCLN has surged 30.3% year to date. The fund charges 56 bps as fees. Its volume is good at an average of 146,371 shares a day.

ALPS Clean Energy ETF ((ACES Quick QuoteACES - Free Report) )

This fund offers exposure to companies primarily located in North America that are focused on renewable energy and other clean technology themes. It holds net assets worth $112 million.

ACES has soared 32.2% year to date. The fund charges 55 bps as fees. Its volume is good at an average of 28,343 shares a day.

Invesco WilderHill Clean Energy ETF ((PBW Quick QuotePBW - Free Report) )

This ETF tracks a broad range of U.S. clean energy companies, offering exposure to a diversified portfolio of renewable energy stocks. Its net asset value was $31.79 per share as of Oct 22, 2025.

PBW has soared 59.3% year to date. The fund charges 64 bps as fees. Its volume is heavy at an average of 1.35 million shares a day.