Renewable energy stocks, once at peak valuations in 2020-21, are struggling with investor pullbacks and face extended uncertainty partly due to U.S. election concerns. Interest in the sector has been eroded by competition from Chinese renewables, strong returns on conventional energy, and issues like supply chain disruptions and grid connection challenges. 

Although the Inflation Reduction Act has supported renewable investments in the U.S., analysts warn that the potential return of Donald Trump to office could redirect funds to fossil fuels, while a win for Democrat Kamala Harris might revive confidence in renewables. 

Even with lower interest rates, a new boom on the scale of 2020-21 is unlikely, as renewable growth has slowed. The sector has seen 17 consecutive months of net outflows, losing over $11 billion in 2024 alone, with major funds like the iShares Global Clean Energy ETF losing 28% in unit numbers. 

Finsum: There could be a serious opportunity to find value in these ETFs at the current price levels.