There are two new exchange traded funds (ETFs) in registration that offer exposure to a fast-growing area of the clean energy market. 

Van Eck and Claymore are in line to offer solar energy ETFs. Claymore’s Global Solar Energy ETF will track the Melvin & Company index of 25 stocks that are selected based on the  importance of solar energy within the company’s business model.

Seeking Alpha Hard Assets Investor reports that Van Eck Market Vectors-Solar Energy ETF will track the Ardour Solar Energy Index. The index is composed of 25 stocks selected based on market cap, liquidity and revenue. The fund is expected to launch this month. Investor interest in solar is strong, giving the solar and clean tech sector a positive outlook over the long haul after once being considered fringe players.

Smart Money’s Rob Wherry adds that these funds are joining the ranks of PowerShares WilderHill Clean Energy (PBW), PowerShares Global Clean Energy (PBD) and Market Vectors Global Alternative Energy (GEX). These types of ETFs have sputtered so far this year, with the funds down 28%, 19%, and 21%, respectively.

Consider that the United States is still in the early stages of solar interest and development. But as the cost of more traditional energy rises, this sector is likely to continue generating interest.

Consider these points in a Scientific American article by Ken Zweibel, James Mason and Vasilis Fthenakis:

• A massive switch to solar power plants could supply 69% of the United States’ electricity and 35% of its total energy by 2050.
• $420 billion in subsidies from 2011 to 2050 would be required to fund the infrastructure and make solar power cost-competitive.
• The energy of the sun striking the earth is powerful: 40 minutes of sunlight is equivalent to global energy consumption for an entire year.

Tags: Green ETFs, Sector ETFs