The lights went out on solar-energy exchange traded funds (ETFs) in February, which dropped by double digits for the month. The good news? Incentive programs and government financing are revitalizing the ailing sector.

Claymore/MAC Global Solar Energy (NYSEArca: TAN) and Market Vectors Solar Energy ETF (NYSEArca: KWT) fell 11% last month, writes Kevin Baker for TheStreet.

First Solar (NYSE: FSLR) dropped in February after Chairman Michale Ahearn dumped 1.3 million shares, or 40% of his holdings. Demand may diminish as Germany may start cutting photovoltaic-panel subsidies.

The sector may not be dark for long, though:

  • Mitsubishi Electric also plans to triple solar-cell production in the next two years.
  • SolarCity has received $90 million in new funding and it will be used to finance SolarCity’s SolarLease and power purchase agreement offerings, which allow customers to make monthly payments with zero money down for their solar installations, according to Environmental Leader.
  • Utility Xcel Energy is offering a SolarRewards program that will give customers a one-time payment of $2.25 per installed watt of generating capacity to help offset the cost of small- to medium-sized installations.
  • Customers may also sign up for rebates from federal, state and local government agencies.

For more information on solar power, visit our solar category.

  • Claymore/MAC Global Solar Energy (NYSEArca: TAN)

  • Market Vectors Solar Energy ETF (NYSEArca: KWT)

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.