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Little joy for cleantech investors - solar sector indices hardest hit amidst the general gloom 

The Cleantech sector has suffered severely during the late summer and early autumn months. The third quarter saw sharp falls in cleantech indices across the board.

The hardest hit sector has been solar, with the Ardour Solar Energy Index now down almost 60% year to date. The index fell by 57.7% during the third quarter as the Solyndra collapse hit sentiment for solar stocks around the world.

Quarterly Index Performance

The index which has held up better than most is the FTSE ET50. Although down by 26% year to date, this index has managed to perform better than most of those focusing primarily on renewable/clean/alternative energy. The four general energy indices listed (WilderHill New Energy, NASDAQ Clean Edge Green Energy, Ardour Global Alternative Energy and WilderHill Clean Energy) have all performed worse than the FTSE ET50. This is explained by the broader remit of the FTSE ET50 beyond just energy - the index also includes stocks in other environmental sectors such as water, which has not suffered so severely as the energy sector.

With little scope for a turnaround of any major significance before the end of the year, 2011 looks set to go down in the records as a disappointing year for cleantech - and renewable energy in particular. Bring on 2012 and let’s hope for some signs of recovery in markets generally and cleantech in particular.

Index Performance Year to Date