Illustration: Aïda Amer/Axios

Solar panels? For investors in solar power stocks and ETFs so far this year, it's been more like solar profits.

What's happening: Invesco's solar ETF, up 51% year-to-date, has returned about four times the S&P 500's gain for 2019 and has even delivered almost double the average return of other clean energy ETFs, after a tough 2018.

  • Individual solar companies are charging even higher, as companies like Sunrun (77%), SolarEdge (71%) and SunPower (107%) generate particularly outsize returns.

"Things look a lot better so far this year," Tom Heggarty, senior analyst at Wood Mackenzie Power & Renewables (WoodMac), tells Axios. "I suspect stocks are doing better because the industry is expected to grow significantly."

By the numbers: A new report from WoodMac and the Solar Energy Industries Association (SEIA) finds that Q1 saw U.S. solar installations (combined utility-scale, residential, commercial and more) rise 10% versus the same period in 2018.

  • The 2.7 gigawatts of solar PV (panels that convert sunlight into electricity) installed made it the best Q1 ever, though other quarters have seen higher growth, and it was a 37% drop from Q4.
  • Analysts expect installed U.S. PV capacity to more than double over the next 5 years.
  • The survey forecasts 25% growth in 2019 compared with 2018.
  • The U.S. solar market saw more than 2 million installations, 3 years after the market surpassed 1 million installations. The industry is expected to hit 3 million installations in 2021 and 4 million installations in 2023.

The intrigue: Solar stock prices have outpaced other renewable energy options thanks to major pickups in residential installation of solar panels, particularly in the South. The uptick has come from states like Florida and Texas, so-called emerging markets in the industry, that are now beginning to see a changing regulatory environment pay dividends.

  • Maryland recently removed a cap on the amount of energy that solar system owners can exchange on the grid and passed a bill requiring the state to generate 50% of its electricity from renewable energy by 2030.
  • Almost a third of new residential capacity in Q1 came from states outside the top 10 markets in cumulative capacity, the highest share ever, data from SEIA report shows.

Yes, but: Non-residential installations fell to the lowest quarterly level since Q1 2017, dropping for a second year in a row. The report suggests policy shifts in states like California, Massachusetts and Minnesota may be stifling commercial growth.

  • The report does project non-residential installations will pick up again in 2020.
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Data: Investing.com; Chart: Axios Visuals

The big picture: "The first quarter reflected bit of a rebound for rooftop solar, and perhaps more importantly the amount of corporate investment in solar by companies such as Anheuser Busch, Starbucks, Facebook, Target, Walmart and many others," SEIA spokesman Dan Whitten tells Axios in an email.

  • Anheuser-Busch recently announced a 15-year virtual power-purchase agreement with Recurrent Energy for a 222-megawatt (AC) project in West Texas as part of its pledge to purchase 100% renewable electricity by 2025. It also has projects in New York and Oklahoma.
  • Starbucks in April unveiled a partnership with U.S. solar developer Cypress Creek on 8 Texas solar projects that will provide energy to 360 stores across the state.

Go deeper: Solar energy use is on the rise worldwide

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Unrest in Philadelphia after fatal police shooting of Black man

Demonstrators rally on Tuesday near the location where Walter Wallace was killed by two police officers in Philadelphia, Pennsylvania. Photo: Mark Makela/Getty Images

The Pennsylvania National Guard was mobilized Tuesday during a tense second night of protests in Philadelphia over the fatal police shooting of Walter Wallace, a 27-year-old Black man.

Driving the news: Philadelphia Jim Kenney (D) and Police Commissioner Danielle Outlaw said in a joint statement Monday that police were launching a "full investigation" to answer questions that arose from video that captured part of the incident with police.

Updated 54 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Obama: Trump is "jealous of COVID's media coverage" Axios-Ipsos poll: Federal response has only gotten worse.
  2. Health: Hospitals face a crush — 13 states set single-day case records last week.
  3. Business: Winter threat spurs new surge of startup activity.
  4. Media: Pandemic causes TV providers to lose the most subscribers ever.
  5. States: Nearly two dozen Minnesota cases traced to three Trump campaign events.
  6. World: Putin mandates face masks.

Louisiana braces for 3rd hurricane in 2 months as Tropical Storm Zeta nears

Municipality workers clean the streets of garbage in Playa del Carmen, Mexico, on Tuesday that was left by Zeta, which struck the Yucatan Peninsula as a Category 1 Hurricane a day earlier — causing no major damage to infrastructure. Photo: Medios y Media/Getty Images

Tropical Storm Zeta is expected to strengthen back into a hurricane and bring dangerous storm surge conditions to parts of the northern Gulf Coast on Wednesday, per the National Hurricane Center.

The state of play: Louisiana Gov. John Bel Edwards (D) requested a pre-landfall Federal Declaration of Emergency in a letter to President Trump on Tuesday, ahead of the storm's expected arrival south of New Orleans.