Solar exchange traded funds are burning up as industry growth outshines expectations that a string of negative factors would weigh on solar stocks.

The Guggenheim Solar ETF (NYSEArca: TAN) surged 55.5% between the April 5 low and Wednesday high. Meanwhile the Market Vectors Solar Energy ETF (NYSEArca: KWT) jumped 36.4%.

“The glare from the red hot TAN (Guggenheim Solar ETF) can be ignored no more,” Chris Hempstead, Director of ETF Execution Services at WallachBeth Capital, said in a note. “This product is up 50% since early April. This sector has been on a tear with names like FSLR and SPWR leading the way. Trading volume during this most recent run is up almost 35% compared to the YTD average volume.”

TAN includes a 18.7% allocation in FSLR and SPWR is 6.5%. KWT has 13.6% in FSLR and SPWR is 4.7%.

First Solar and SunPower have both been giving out better-than-expected guidance for the rest of the year, reports Donna Hwell for Investor’s Business Daily. SunPower guided a revenue of $2.5 billion to $2.6 billion with EPS of 60-80 cents, compared to analysts expectations of $2.54 billion in revenue and an EPS of 64.

SunPower also expects to double its 2012 installed customer base by 2015.

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