Clean Energy ETF Sees Flows as Grid Buildout Hits Record

The U.S. clean energy industry capped its strongest year on record for new installations in 2025. That buildout helped drive returns for the ALPS Clean Energy ETF (ACES). ACES gained 44.8% over the past year, according to ETF Database.

Annual clean power installations surpassed 50 GW for the first time in history, totaling 50,344 MW in 2025, according to the American Clean Power Association’s Q4 2025 Clean Power Quarterly Market Report. The report states that clean energy accounted for over 90% of all new power capacity added to the U.S. grid last year.

According to the ACP, solar led the buildout. It delivered nearly half of all new power capacity in 2025 at 49%. Developers brought over 10 GW of utility-scale solar online in the fourth quarter alone. The battery storage industry posted its best year yet for deployments, adding 16,175 MW of new capacity. This surpasses its previous annual record, set in 2024, by 41%.

The record installations have pushed total operational clean power in the U.S. to 363,301 MW. According to the report, this is enough to power over 79 million American homes.

ACES holds a portfolio weighted toward companies building the infrastructure behind these installations. As of December 31, the fund allocated 29.2% to solar companies, 16.2% to energy management and storage firms, and 11.9% to wind developers, according to the fund’s factsheet.

Clean Energy Infrastructure Demand

Underlying demand for clean power remains at an all-time high. The ACP report cites the AI data center sprint and the electrification of everything as factors continuing the momentum. For instance, developers reported 187,514 MW of clean power projects either under construction or in advanced development by the end of 2025. This marked an 8% increase from the prior year.

More specifically, the report found that at the end of 2025, developers had 81,095 MW of clean power capacity under construction, spanning 588 projects across 48 states and Puerto Rico. Texas led with 17.7 GW of capacity under construction, accounting for 22% of the total construction pipeline. Arizona and California each had over 5 GW under construction.

Battery storage continued to see the strongest growth among all technologies. According to the report, storage pipeline has risen 16% year-over-year to over 46 GW of capacity under construction or in advanced development.

ACES has attracted investor interest alongside the industry’s growth. According to ETF Database, it pulled in $13.2 million over the past month and brought its year-to-date inflows to $6.2 million. Top holdings in ACES included Albemarle Corp. (ALB), Enphase Energy Inc. (ENPH), Nextpower Inc. (NXT), and Brookfield Renewable Partners (BEP.UT).

ACES holds $114.3 million in assets under management and charges a 0.55% expense ratio, according to ETF Database.

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