Top Solar Industry Shares in India 2024: Best Green Energy Stocks (2024)

India is making significant strides in the solar energy sector, driven by the government’s ambitious renewable energy targets. The country’s installed solar capacity has grown to 84.27 GW from 2.6 GW in 2014. Further, India stands at 5th position globally in solar power capacity. Considering these, investors may be looking for the best solar stocks in India. Therefore, in this blog, let’s explore the top 10 solar energy stocks in India, along with their features, how to invest, risks, advantages, and more.

Top 10 Solar Industries to Invest in 2024

The Government of India has begun to realise the importance of solar energy, boosting the momentum of solar energy share prices. Therefore, look at India’s best solar energy stocks list. These are the top ranked renewable energy stocks in India or solar penny stocks in India:

Note: The data in this solar energy share list, including the solar industries India share price, is from 6th August 2024. This data is derived from Tickertape Stock Screener.

Also, check out the list of top green energy stocks India.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Best Solar Energy Stocks in India 2024: An Overview

Here is an overview of the list of solar energy companies in India:

K.P. Energy Ltd

Founded in 2010 by Farukbhai Patel, K.P. Energy Ltd is a significant player in the renewable energy sector, focusing on the development and operation of wind power projects in India. The company has a market capitalisation of Rs. 2,549 cr. and a stock price of Rs. 379.10 as of 6th August 2024. This solar power company in India has a price-to-earnings (PE) ratio of 49.95 and has achieved a 5-year average return on investment of 17.23%, the highest in the list of top solar companies in India listed in stock market.

BF Utilities Ltd

BF Utilities Ltd, established in 2000, is part of the Kalyani Group and is involved in the renewable energy sector, primarily focusing on wind power. The solar company in India has a market capitalisation of Rs. 2,812 cr. and a stock price of Rs. 752.35 as of 6th August 2024. BF Utilities has a notably high PE ratio of 326.88, and a 5-year average return on investment of 14.26%, making it achieve 2nd position in the list of the best solar shares in India.

Zodiac Energy Ltd

Zodiac Energy Ltd, founded in 1992 by Hitesh Patel, specialises in renewable energy equipment and services, particularly solar power solutions. The company has a market capitalisation of Rs. 1,077 cr. and a stock price of Rs. 720.15 as of 6th August 2024. Zodiac Energy boasts a PE ratio of 109.12 and a 5-year average return on investment of 12.38%.

KPI Green Energy Ltd

KPI Green Energy Ltd, established in 2008, is a prominent player in the solar power sector, developing and operating solar power projects. The company has a market capitalisation of Rs. 11,763.55 cr. and a stock price of Rs. 929.20 as of 6th August 2024. It has a PE ratio of 65.75 and a 5-year average return on investment of 11.18%.

SJVN Ltd

Founded in 1988, SJVN Ltd is a major renewable energy company primarily engaged in hydropower generation. The solar energy company has a significant market capitalisation of Rs. 54,820.64 cr. and a stock price of Rs. 135.60 as of 6th August 2024. SJVN has a PE ratio of 56.48 and a 5-year average return on investment of 9.84%.

KKV Agro Powers Limited

KKV Agro Powers Limited, a smaller player in the renewable energy sector, focuses on generating power through agricultural waste. The solar energy company has a market capitalisation of Rs. 49.15 cr. and a stock price of Rs. 867.00 as of 6th August 2024. KKV Agro Powers has a high PE ratio of 234.98 and a 5-year average return on investment of 8.78%.

Orient Green Power Company Ltd

Orient Green Power Company Ltd, established in 2006, is engaged in the generation of power from renewable sources such as wind and biomass. The solar energy company has a market capitalisation of Rs. 2,038.93 cr. and a stock price of Rs. 21.57. It has a PE ratio of 53.99 and a 5-year average return on investment of 7.95%.

WAA Solar Ltd

WAA Solar Ltd, founded in 2009, specialises in solar power generation and has been actively developing solar power projects across India. The solar power company in India has a market capitalisation of Rs. 209.28 cr. and a stock price of Rs. 158.95 as of 6th August 2024. WAA Solar has a PE ratio of 35.76 and a 5-year average return on investment of 7.03%.

Energy Development Company Ltd

Energy Development Company Ltd, incorporated in 1995, focuses on hydropower generation. The company has a market capitalisation of Rs. 148.34 cr. and a solar power price of Rs. 29.68 as of 6th August 2024. It has a negative PE ratio of -52.25, indicating recent financial challenges, and a 5-year average return on investment of 6.80%.

Adani Green Energy Ltd

Adani Green Energy Ltd, part of the Adani Group, was founded in 2015 and is one of the largest renewable energy companies in India. The company has an impressive market capitalisation of Rs. 2,80,175.74 cr. and a solar power share price of Rs. 1,749.60 as of 6th August 2024. It has a PE ratio of 255.48 and a 5-year average return on investment of 6.64%.

Investing in Solar Energy Stocks via smallcase

Did you know that you can invest in the solar industries shares portfolios that are managed by SEBI-registered experts? Yes, that’s right.

Let’s learn about smallcase.

A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They help investors build a low-cost, long-term & diversified portfolio with ease. smallcases are created and managed by SEBI-registered investment professionals (also known as smallcase managers).

Among 500+ smallcases, here are some of the top solar industries shares smallcases:

Green Energy smallcase by Niveshaay

Electric Mobility smallcase by Windmill Capital

• Disclosures for Green Energy smallcase
• Disclosures for Electric Mobility smallcase

What are Solar Energy Stocks in India?

Solar energy is a clean and renewable resource with zero emissions. Various devices can harness its tremendous energy potential. In recent years, solar energy stocks NSE have become readily available for industrial and domestic use and are also maintenance-free.

The rapid development in the solar energy market in India has positively impacted investors’ views on investing in solar energy stocks in India. Solar energy related stocks are stocks or shares of companies involved in producing, installing, or distributing solar energy products or services. These solar industry share companies primarily manufacture solar panels, inverters, and other components of solar energy systems. These solar energy investments also install, maintain, and monitor solar energy systems.

Thus, investing in the best solar energy stocks in India or government solar stocks in India can expose investors to the rapidly growing renewable energy sector. As the world embraces more sustainable energy sources, experts anticipate India’s solar industry shares will gain increasing importance. Additionally, they expect selling solar energy shares in India, solar energy penny stocks in India, or government solar stocks to yield significant profits.

Implications of the Union Budget 2024-25 on the Solar Energy Sector in India

Finance Minister Nirmala Sitharaman made history with her seventh consecutive Budget presentation. Here are a few allocations made in the Union Budget 2024-25 that may be relevant to the solar industry in India:

1. Sitharaman announced the Pradhan Mantri-Surya Ghar Muft Bijli Yojana (PM Free Electricity Scheme). This initiative aims to provide free electricity up to 300 units per month to one crore households through rooftop solar (RTS) installations.

   The scheme has already seen significant interest, with over 1.28 crore registrations and 14 lakh applications. Expected benefits include annual household savings of Rs. 15,000-18,000 from free solar electricity and selling excess power to distribution companies, as well as opportunities in electric vehicle charging, entrepreneurship for vendors, and job creation in solar panel manufacturing and maintenance.

2. Sitharaman introduced policies to support pump storage projects for continuous energy supply and announced a joint venture between NTPC and BHEL to set up an 800 MW supercritical thermal power plant with higher efficiency.
3. The budget proposed expanding the list of exempted capital goods used in solar cell and panel manufacturing while removing customs duty exemptions for solar glass, plain glass, and thinned copper interconnect due to sufficient domestic manufacturing capacity.

Solar energy is crucial for India’s goal of generating 500 GW of renewable energy by 2030. This would contribute to reducing dependence on fossil fuels and combat climate change.

Why Invest in Solar Energy Stocks?

Investing in the best solar energy companies in India offers numerous benefits due to the country’s strategic initiatives and natural advantages. Here are key reasons why investment in solar energy might be an attractive option:

Historical Foundation

The Rural Electrification Program of 2006 marked the Indian Government’s initial step towards enhancing rural energy consumption through solar power. This program laid the groundwork for significant growth in the solar industry, with dramatic increases in solar energy shares since its inception.

Government Support and Incentives

The Indian government actively supports the solar sector in India through various policies and incentives. The National Action Plan on Climate Change emphasises the potential of solar energy, stating, “India is a tropical country, where sunshine is available for longer hours per day and in great intensity. Solar energy, therefore, has great potential as a future energy source. It also has the advantage of permitting decentralised energy distribution, thereby empowering people at the grassroots level”.

Rapid Growth Potential

India’s solar energy sector has seen exponential growth. The installed solar capacity has surged from 1.60 GW in 2013 to over 84 GW by mid-2024. This growth is driven by ambitious government targets and favourable policies, aiming for 500 GW of renewable energy by 2030.

Technological Advancements

The solar industry is continually evolving with advancements in technology, improving efficiency and reducing costs. Companies investing in research and development are well-positioned to capitalise on these innovations, making solar energy increasingly competitive with traditional fossil fuels.

Environmental Benefits

Solar energy is a clean, renewable source that significantly reduces greenhouse gas emissions and pollution compared to fossil fuels. Investing in solar related stocks aligns with global sustainability goals and contributes to a cleaner environment.

Economic and Job Growth

The expansion of the solar energy sector stimulates job creation and economic development across various skill levels. This growth helps alleviate poverty and fosters overall economic progress, making it a socially responsible investment.

Abundant Solar Resources

India’s geographic location provides abundant sunshine throughout the year, making it ideal for solar energy production. This natural advantage provides a solid foundation for the growth of the solar energy sector.

Diverse Investment Opportunities

Including solar energy stocks in your portfolio can help diversify investments and mitigate risks. The solar sector operates independently of traditional market cycles, offering a hedge against economic downturns and market volatility.

India’s commitment to expanding its renewable energy capacity and reducing carbon emissions, combined with technological advancements and government support, seems to be positioning the solar energy sector for significant growth. However, before investing, it is worthwhile to consult a financial advisor.

Features of Solar Companies Listed in NSE

India’s solar energy sector is flourishing, with several companies listed on the National Stock Exchange (NSE). Here are some key features you might find across the solar energy companies in India listed in stock market:

Focus Area

Solar companies listed on the NSE, including some of the best solar EPC companies in India, often specialise in different segments of the solar energy value chain. Some companies may focus on manufacturing solar modules or the top solar panel in India, while others concentrate on developing solar power plants or offering EPC (Engineering, Procurement, and Construction) services. This specialisation allows them to leverage specific expertise and cater to distinct market needs, making them prominent players in the solar panel business in India.

Project Experience

When evaluating solar companies, it is essential to look for those with a proven track record of completing solar projects. The scale and complexity of their past projects can indicate their expertise and reliability. Companies with extensive project experience, such as those that are among the top solar panel companies in India, often have a history of handling both large-scale and complex installations, showcasing their ability to manage and deliver high-quality solar projects efficiently.

Financial Performance

Assessing a company’s financial health is crucial. Reviewing profitability, debt levels, and future growth prospects is important, especially for solar energy companies in India listed in the stock market. Companies with strong financial metrics, like those among the top solar stocks India, may be better positioned to withstand market fluctuations and invest in new technologies and projects. Evaluating their financial stability is essential for understanding their long-term viability.

Government Support

The Indian government has ambitious renewable energy targets and provides various incentives to promote solar energy adoption. Solar India companies that are well-positioned to benefit from these initiatives can have a strategic advantage. Government policies, subsidies, and tax benefits play a significant role in creating a conducive environment for these companies to thrive and expand their operations.

Technological Advancements

Continuous innovation and technological advancements are important features of leading solar companies, including those producing the top ten inverter in India. Firms that invest in new technologies can improve efficiency and reduce costs. These advancements help maintain competitive advantages and foster long-term sustainability. Keeping an eye on companies that prioritise research and development can be beneficial.

Diversification and Sustainability

Investing in solar companies contributes to portfolio diversification and supports global sustainability goals. Solar energy is a renewable resource that reduces reliance on fossil fuels and mitigates environmental impact. Companies in this sector often align with broader environmental and sustainability objectives, making them appealing for socially responsible investments.

How to Invest in Solar Energy Stocks?

Investing in solar energy stocks in India can be a promising opportunity. Here are the steps you can follow to invest in solar stocks to buy in India:

Research Top Solar Companies

To invest in solar energy stocks, you can start by identifying reputable solar energy firms with strong financials and growth potential. By researching their financial health, project experience, and market presence, you can assess their viability as solar energy investments.

Evaluate Company Performance

It’s important to analyse the financial health, growth prospects, and industry outlook of the companies you are considering. You might want to look at their revenue trends, profitability, debt levels, and future growth projections. By evaluating these factors, you may gain insights into the company’s stability and potential for returns.

Consider Industry Trends

Understanding the broader industry trends can help you make informed investment decisions. You can assess the regulatory environment, government policies, and market demand for renewable energy. The Indian government’s support through incentives and subsidies plays a crucial role in the growth of the solar energy sector. Staying updated with these trends can help you identify companies well-positioned to benefit from favourable conditions.

Diversify Your Portfolio

You can spread your investments across various solar energy segments and companies to mitigate risk. Diversifying your portfolio may reduce the impact of potential volatility in any single investment. Consider investing in different types of solar companies, such as those involved in manufacturing, project development, and EPC services.

Open a Trading Account

To invest in a solar energy share in India, you need to set up a Demat and trading account. This account allows you to hold and trade shares electronically. You can open these accounts through a brokerage firm, which will facilitate your stock transactions.

Place Orders

Once your trading account is set up, you can buy solar energy sector stocks through your broker’s platform or directly from the company. It is important to monitor the performance of your investments and stay updated with market trends to make informed decisions about buying or selling stocks.

Who Should Invest in the Listed Solar Companies in India?

Investing in listed solar companies in India can be appealing for several reasons. Here’s a breakdown of who might benefit from this type of investment:

• Investors with a Long-Term Horizon: The solar industry is expected to grow significantly in the coming years, but this growth might take time. Investors seeking long-term capital appreciation aligned with this potential growth trajectory could find listed solar companies attractive.
• Risk-tolerant Investors: The stock market inherently carries risk, and solar companies can be volatile. Investors comfortable with this level of risk and potentially higher returns might consider investing in a solar stock in India.
• Believers in Sustainable Energy: If you’re passionate about clean energy and want to align your investments with your values, solar companies can be an option.

Risk of Investing in Solar Industries Shares

Here are the two primary risks associated with solar power company shares in India:

• Competition from Traditional Energy Sources: Fluctuations in the prices and demand for these traditional energy sources can impact the performance of even the best solar company stock in India.
• Global Economic Conditions: Global economic conditions can affect solar industry shares. Events like the COVID-19 pandemic have disrupted global supply chains, impacting the solar industry’s supply of raw materials and components. This can lead to temporary declines in solar energy stock prices of even the top solar energy stocks in India.

Advantages of Investing in Solar Industries Shares

The rising EV solar share prices and the government’s push for renewable energy are expected to drive significant growth in the solar industries in India. Some of the advantages of investing in the top solar stocks in India are listed below:

• Potential for Long-Term Growth: The solar industry has steadily grown over the past decade. The increasing demand for renewable energy and the declining cost of solar technology will boost the growth of solar power stocks in India for many years.
• Diversification of Portfolio: Investing in the best solar stocks in India can help diversify a portfolio and reduce risk. Solar energy stocks in India can offer a different risk and return profile than traditional energy stocks. Thus, it exposes investors to a different sector of the economy.
• Positive Environmental Impact: Solar energy is a clean and renewable energy source. Evaluating the solar industries share prices can help support the transition to a more sustainable energy system. Investing in the best solar stocks in India can help reduce greenhouse gas emissions and mitigate climate change.
• Potential for High Returns on Investment: As the solar company share prices continue to grow, there is the potential for high returns on investment. Thus, solar company shares that can compete effectively in the market continue to innovate. Furthermore, they offer growth and profitability in solar power shares.

Factors to Consider Before Investing in Solar Industries Shares

If you’re considering investing in solar industry shares in India, there are several factors to consider to ensure a well-informed investment decision, including the performance of solar energy business stocks and the current state of the top solar stocks in India.

Here are some factors to consider before investing in solar energy stocks in India:

Government Policies and Incentives

Government policies and incentives can significantly impact the growth and profitability of solar industry shares in India. These policies have created a favourable environment for the best solar stocks in India, including solar panel stocks and companies listed in the stock market that manufacture solar energy equipment. This support has boosted the performance of leading solar companies, reflected in the solar company share price list in India.

Portfolio Diversification

Portfolio diversification is crucial when investing in the stock market, including solar energy stocks in India. Investing in solar sector stocks, such as those of top solar energy companies in India, can help diversify a portfolio. Investors can assess the potential impact of adding solar panel stocks India to enhance the balance of their investments, given the growing share of solar energy in India.

Competition from Traditional Energy Sources

Solar industry shares face competition from traditional energy sources such as coal, oil, and gas. These conventional energy sources are still widely used in India, and their fluctuating prices can impact solar energy companies in India listed in the stock market. This competition may influence the solar stock price and the overall performance of solar power stocks India.

Global Economic Conditions

Global economic conditions can affect solar industry shares. For instance, the COVID-19 pandemic disrupted global supply chains, impacting solar power shares and the availability of components critical for manufacturing. This led to a temporary decline in solar panel share prices, affecting top solar stocks in India and other solar-related stocks.

To Wrap It Up…

To conclude, India has great potential to generate electricity from solar energy and emerge as a solar energy hub. Experts predict that solar power company share prices will rise as the Indian government continues to promote the best solar stocks in India. Luckily, you don’t have to monitor every share in the solar industry. How? Now, you can get exposure to portfolio investing via smallcase by choosing a portfolio of the top solar companies in India listed in the stock market within a click!

Frequently Asked Questions About Solar Stocks