Examples of Thematic Investing in Renewable Energy: 3 Core Plays (Plus 5 More Ideas)

When people ask for examples of thematic investing in renewable energy: 3 examples that are easy to understand, solar usually tops the list. It’s a clean, narrow theme with a massive policy tailwind.

A classic example of a solar-focused thematic investment is building a position around companies that:

• Manufacture photovoltaic (PV) panels and inverters
• Develop and operate solar farms
• Provide residential and commercial rooftop solar solutions

Instead of buying one or two solar stocks and hoping for the best, many investors use an ETF as the core expression of the theme. The Invesco Solar ETF (TAN) is the go‑to reference here. It holds a basket of global solar companies, including names like Enphase, SolarEdge, and First Solar. That’s a textbook case of thematic investing: one clear idea (solar adoption) expressed through a concentrated but diversified basket.

Why solar fits thematic investing so well

Solar works as a theme because it sits at the intersection of technology, policy, and cost curves:

• Cost declines: The International Renewable Energy Agency (IRENA) reports that the global weighted-average cost of electricity from utility-scale solar PV fell around 89% between 2010 and 2022, making it one of the cheapest new sources of power in many regions.
• Policy support: In the U.S., the Inflation Reduction Act (IRA) extended and expanded tax credits for solar projects, providing multi‑year visibility for developers and manufacturers. You can find policy details at the U.S. Department of Energy’s energy.gov site: https://www.energy.gov/
• Adoption trends: Residential solar installations in the U.S. have grown strongly over the past decade, supported by falling costs and state-level net metering policies.

When you build a solar theme into a portfolio, you’re not just betting that “green is good.” You’re making a targeted call that solar will keep gaining share of global electricity generation, and that the ecosystem of companies around it will benefit.

Other examples include:

• A portfolio tilt toward U.S. solar manufacturers that benefit from domestic content incentives under the IRA
• A basket of international solar developers in emerging markets where electricity demand is growing quickly

These are all real examples of investors using the same underlying theme—solar adoption—but expressing it in different ways.

2. Wind power and grid-scale renewables: another core example of thematic investing

If solar is the first stop, wind is usually the second when listing examples of thematic investing in renewable energy: 3 examples that form the backbone of many “green” portfolios.

Here, the theme is broader: large-scale onshore and offshore wind power, plus the related supply chain. Investors might focus on:

• Turbine manufacturers
• Developers and operators of wind farms
• Transmission and grid companies that connect remote wind resources to demand centers

A widely cited example of this theme in practice is the First Trust Global Wind Energy ETF (FAN), which holds a mix of turbine makers and project developers. Another route is to buy shares of large integrated utilities that are aggressively shifting from coal and gas toward wind and solar.

Why wind is a distinct theme, not just “more renewables”

Wind has its own economics and policy drivers:

• Scale and capacity factors: Utility-scale wind projects deliver large blocks of power with relatively high capacity factors compared with solar, especially in high‑quality wind regions.
• Offshore build‑out: Europe and parts of Asia have been leaders in offshore wind, and the U.S. is slowly catching up with lease auctions and long‑term targets. The U.S. Bureau of Ocean Energy Management (BOEM) tracks offshore wind activities: https://www.boem.gov/
• Grid integration challenges: Wind often gets built far from major load centers, which creates a separate theme around transmission upgrades and grid modernization.

So a thematic investor might build a “wind and grid” sleeve that includes:

• A wind-focused ETF
• Select turbine manufacturers
• U.S. utilities with large regulated capital spending plans for transmission lines and wind farms

This is one of the best examples of how a theme can straddle multiple sub‑industries while still being anchored to a single structural idea: the long‑term rise of grid-scale renewables.

3. Broad clean energy ecosystems: the third major example of thematic investing

The third of our core examples of thematic investing in renewable energy: 3 examples is the broad clean energy ecosystem theme. Instead of isolating solar or wind, this approach treats the entire low‑carbon power stack as one investable idea.

Here, investors often turn to diversified clean energy ETFs that hold:

• Solar and wind developers
• Renewable equipment manufacturers
• Grid and storage companies
• Sometimes, low‑carbon fuels and efficiency plays

A widely known example of this is the iShares Global Clean Energy ETF (ICLN), which tracks an index of companies involved in clean energy production and equipment. Another is the Invesco WilderHill Clean Energy ETF (PBW), which leans into smaller, more growth‑oriented names.

This theme is broader and more volatile, but it captures a simple thesis: as the world decarbonizes, the entire clean power value chain should grow.

Why some investors prefer the broad ecosystem theme

Compared with single‑technology themes, this approach offers:

• Diversification across technologies: If solar margins are getting squeezed but wind is booming, the portfolio doesn’t live or die on one segment.
• Exposure to policy and corporate net‑zero targets: Many governments and large companies have set net‑zero goals for 2050 or earlier. The United Nations tracks global climate commitments and progress here: https://www.un.org/climatechange
• Room for innovation: New technologies like long‑duration storage or advanced grid software can be added as they mature.

This is where many investors start if they want thematic exposure to renewables but don’t want to micromanage sub‑themes.

Beyond the big 3: more real examples of renewable energy themes

The headline examples of thematic investing in renewable energy: 3 examples (solar, wind, broad clean energy) are only the beginning. In practice, sophisticated investors often slice the theme more finely. Here are several real examples of how that looks.

Energy storage and grid flexibility

Renewables are intermittent. That creates a separate investment theme around balancing the grid:

• Battery manufacturers (lithium‑ion and beyond)
• Utility‑scale storage project developers
• Software companies providing grid management and virtual power plant solutions

A thematic investor might:

• Hold a clean energy ETF as a core position
• Add a focused battery or energy storage ETF as a satellite
• Layer in one or two individual stocks in grid software or demand response

This theme leans into the idea that as solar and wind penetration rises, storage and grid flexibility become more valuable.

Renewable infrastructure and yield vehicles

Another set of examples include income‑oriented vehicles that own renewable assets and distribute cash flows to investors. These can be listed infrastructure funds or yieldcos that own portfolios of wind and solar farms.

The theme here is less about technology upside and more about:

• Long‑term contracted cash flows from power purchase agreements
• Inflation‑linked revenue in some markets
• Potential for gradual asset expansion over time

This is a different flavor of thematic investing in renewable energy: still focused on the transition, but with a tilt toward income and stability rather than pure growth.

Electric vehicles and charging networks

EVs are not power plants, but they’re tightly linked to the renewable energy story. As the grid gets cleaner, electrifying transport becomes a major emissions lever.

Some investors treat EVs and charging infrastructure as an adjacent theme to renewables, building positions in:

• EV manufacturers
• Battery producers
• Charging network operators
• Component suppliers (power electronics, connectors, etc.)

The connection is straightforward: more renewables on the grid make EVs cleaner over their lifetime, and more EVs increase electricity demand, supporting further renewable build‑out.

Green hydrogen and renewable fuels

At the more speculative end of the spectrum, you’ll find themes around green hydrogen and renewable fuels. These depend heavily on cheap renewable power, making them a second‑order play on the same trend.

A thematic investor might:

• Keep these exposures small and clearly labeled as higher risk
• Focus on companies with real projects and offtake agreements, not just slide decks
• Pair them with more established solar and wind holdings

These are real examples where investors try to capture upside from emerging technologies that could become important in hard‑to‑abate sectors like steel, cement, and shipping.

How to build a renewable energy theme into a portfolio

So far, we’ve walked through multiple examples of thematic investing in renewable energy: 3 examples at the core and several satellite ideas. The practical question is how to turn this into an actual portfolio allocation.

A common structure looks like this:

• Core: A broad clean energy ETF (or two) that covers solar, wind, and related technologies globally.
• Satellites: Targeted positions in solar, wind, storage, or infrastructure themes where you have stronger conviction.
• Risk management: Position sizing rules so that even if the theme underperforms for several years, it doesn’t derail your overall financial plan.

This is still thematic investing, not a replacement for a diversified core portfolio of broad equity and bond exposures.

From a research perspective, investors often:

• Track policy developments on sites like the U.S. Department of Energy (https://www.energy.gov/)
• Monitor global climate and energy reports from organizations such as the International Energy Agency (https://www.iea.org/)
• Review academic and policy research from universities and think tanks (for example, MIT’s Energy Initiative at https://energy.mit.edu/)

These sources help separate durable structural trends from short‑term hype.

Key risks and how they show up in real examples

Thematic investing in renewable energy is not a straight line. The same examples of thematic investing in renewable energy: 3 examples that look so promising on a long‑term chart can be painful in the short run.

Common risk drivers include:

• Interest rates: Renewable projects are capital‑intensive. Rising rates can hurt valuations for developers and infrastructure vehicles.
• Policy shifts: A change in government or regulatory regime can slow permitting, cut subsidies, or alter tax incentives.
• Commodity and supply chain issues: Prices for key inputs (like polysilicon or critical minerals) can swing widely.
• Valuation cycles: Clean energy stocks often trade in boom‑bust cycles as sentiment flips between euphoria and pessimism.

If you look at actual ETF performance over the past decade, you’ll see periods where clean energy dramatically outperforms the broad market, followed by years of underperformance. That’s why many investors cap their thematic allocations at a modest percentage of their total portfolio.

FAQ: examples of thematic investing in renewable energy

Q: What are the main examples of thematic investing in renewable energy?
A: The three core examples are: a solar power theme, a wind and grid-scale renewables theme, and a broad clean energy ecosystem theme expressed through diversified ETFs. Additional examples include storage and grid flexibility, renewable infrastructure income vehicles, EV and charging networks, and emerging areas like green hydrogen.

Q: Can you give a concrete example of a renewable energy thematic portfolio?
A: One example of a simple structure is: a global clean energy ETF as a core holding, plus smaller positions in a solar ETF, a wind ETF, and a storage or battery ETF. Some investors then add a listed renewable infrastructure fund for income. Together, these positions express multiple linked themes around the energy transition.

Q: Are these themes only about stocks, or can bonds be included?
A: Many investors focus on equities and ETFs, but there are green bonds and sustainability‑linked bonds that finance renewable projects. Those can be part of a broader thematic allocation, especially for income‑oriented portfolios.

Q: How long should I hold a renewable energy theme?
A: Thematic investing is typically a multi‑year decision. The structural drivers behind renewables—cost declines, climate policy, corporate net‑zero commitments—play out over decades, not quarters. If you treat these themes like short‑term trades, you’re more likely to get whipsawed by volatility.

Q: Where can I find reliable data to evaluate these themes?
A: For high‑quality, non‑marketing information, look at:

• U.S. Department of Energy: https://www.energy.gov/
• International Energy Agency: https://www.iea.org/
• MIT Energy Initiative: https://energy.mit.edu/

These sources provide data, policy context, and scenario analysis that can inform how you size and structure your renewable energy thematic investments.