Invesco Solar ETF surges 45% in 5 months, beating S&P 500 but still below 5-year highs.

Invesco Solar ETF (TAN) gained about 45% in the first five months of 2026, outperforming the S&P 500's 11% return in the same period. This rally follows a recovery from a depressed base after several tough years due to rising rates and political uncertainty over tax credits. The sector's rebound was driven by steady demand growth, stable policy support, and rising electricity prices improving solar economics. However, the recent gains reflect a recovery rather than new highs, and future growth will depend on earnings and continued favorable conditions rather than sentiment alone.