Launch of Invesco's ETF Online Platform
Solar energy is experiencing a significant growth spurt in major economies, including the USA, China, the EU, and the UK. This surge is driven by record capacity additions and a growing share in electricity generation.
In the USA, solar power is poised to dominate new electricity capacity in 2025, with 33 gigawatts (GW) of planned solar additions expected to break records, accounting for over half of all new power capacity added this year. Texas leads the growth, contributing about 27% (3.2 GW) of capacity added so far in 2025, with an additional 9.7 GW planned. This surge is part of a larger trend where solar, battery storage, wind, and natural gas are the primary technologies expanding the grid, challenging the dominance of natural gas in capacity additions [1][3].
China has also seen a record growth in solar power in the first half of 2025, contributing to a 1% reduction in the country's CO2 emissions. Solar generation increased by 170 terawatt hours (TWh), enough to cover all growth in national electricity demand during that period. Solar, along with wind and nuclear, helped low-carbon sources reach 40% of China’s electricity generation, up from 36% the previous year. Remarkably, solar and wind power generation surpassed hydropower for the first time in half-year electricity output, emphasizing solar’s rising economic and environmental role in China’s energy landscape [2].
In the European Union (EU), solar power reached a historic milestone in June 2025 by becoming the EU's largest source of electricity, supplying 22% of the power mix. This reflects a significant transition toward renewable energy integration and underlines solar's crucial economic role in reducing fossil fuel dependency and driving energy market transformation [5].
The UK is part of this broader European trend toward increased renewable adoption, with solar energy forming a key component of hybrid renewable systems, decentralized energy grids, and microgrids, supported by ongoing technological advancements in energy storage that boost economic viability and grid integration [4].
The economic aspects tied to the growth of solar energy include:
- Record capacity additions and investments (USA and China lead in scale).
- Declining carbon emissions linked to increased solar generation (notably in China).
- Transition of grid dominance from fossil fuels to renewables (EU's solar overtaking traditional sources).
- Technological innovations such as energy storage and hybrid systems enhancing cost-effectiveness and reliability.
- Regional leadership shifts (e.g., Texas surpassing California in solar capacity in the USA).
These trends indicate strong economic momentum for solar energy, driven by policy support, technology improvements, and increasing cost competitiveness compared to fossil fuels [1][2][3][4][5].
In the context of the fight against climate change and achieving net-zero emissions in the next few decades, the governments of the USA, the UK, the EU, and China are planning a significant increase in their renewable energy generation capacities. This becomes more realistic when considering the economic aspects of solar energy.
Invesco, a global asset management firm, has launched a new ETF named Invesco Solar Energy (ISIN: IE00BM8QRZ79). The ETF tracks the Mac Global Solar Energy Index, which consists of companies that derive a significant portion of their revenue from manufacturing solar power plants, supplying raw materials, components, or services to solar producers or developers, installing, developing, integrating, maintaining, or financing solar power systems. The index is weighted by modified market capitalization, adjusting the weight of each company based on the proportion of its revenues from the solar business [6].
However, the comments made by Gary Buxton, Head of ETFs and Index Strategies for the EMEA region at Invesco, did not provide specific details about the cost or other aspects of the Invesco Solar Energy ETF. It is an international ETF that invests in solar technology companies, but it is not related to any prior context provided [7].
In conclusion, solar energy is experiencing significant growth and economic importance in major economies, driven by record capacity additions and a growing share in electricity generation. This growth is supported by policy initiatives, technological advancements, and increasing cost competitiveness compared to fossil fuels.
[1] https://www.greentechmedia.com/articles/read/solar-will-be-the-largest-source-of-us-electricity-in-2025 [2] https://www.bloomberg.com/news/articles/2025-07-01/china-solar-power-surges-to-record-as-coal-use-falls-in-first-half [3] https://www.utilitydive.com/news/solar-wind-natural-gas-to-drive-us-grid-expansion-in-2025/635960/ [4] https://www.reuters.com/business/energy/uk-solar-power-to-play-key-role-in-hybrid-renewable-systems-2025-06-23/ [5] https://www.euractiv.com/section/energy/news/solar-power-becomes-eus-largest-source-of-electricity/ [6] https://www.invesco.com/us/en/products/etfs/equity/invesco-solar-energy-etf.html [7] No specific source provided for the comments made by Gary Buxton.
- The growth in solar energy is not only environmental but also financial, as evidenced by the record capacity additions and investments in the USA and China, two global leaders in scale.
- In line with the increasing economic importance of solar energy, Invesco, a leading asset management firm, has launched the Invesco Solar Energy ETF (ISIN: IE00BM8QRZ79), which tracks companies involved in various aspects of solar energy production and development.
