Initially, India’s industrial growth and economic progress were being hampered by acute energy scarcity. As a result, setting up new power plants came with the import of highly volatile fossil fuels. Given the current state of the climate crisis and our government’s mission to be net carbon zero, it is imperative to make judicious use of renewable energy resources and invest in solar industries shares in India.
With over 5000 trillion kWh per year of energy generated by the sun, solar energy in India is steadily picking up its pace. Since most developed countries are switching to solar energy, investors are keen to invest in solar industries shares to encourage clean energy solutions in the country.
In this blog, we will explore the current state of solar stocks in India, the reasons for the sudden investor interest, popular solar enterprises shares, and what readers can expect in the future.
What are Solar Energy Stocks in India?
Solar energy is a clean and renewable resource with zero emissions. Various devices can harness the tremendous energy potential of solar power. In recent years, solar energy stocks systems have become readily available for industrial and domestic use by also being maintenance-free.
The rapid development in solar energy has positively impacted investors’ views on investing in solar energy stocks in India. Solar energy stocks are stocks or shares of companies that are involved in producing, installing, or distributing solar energy products or services. These solar industries shares companies that primarily manufacture solar panels, inverters, and other components of solar energy systems. They also provide services such as installation, maintenance, and monitoring of solar energy systems.
Thus, investing in solar energy stocks in India can expose investors to the rapidly growing renewable energy sector. Therefore, as the world moves towards more sustainable energy sources, India’s solar industries shares are expected to become increasingly essential, and solar industries shares are set to rise.
5 Popular Solar Industries to Invest in 2023
The Government of India has begun to realize the importance of solar energy, which has boosted the momentum of solar industries share prices. Therefore, let’s look at the best solar energy stocks in India.
|S.No||Company Name||Sub-Sector||Market Cap (in Cr)||Share Price|
|1.||Adani Green Energy Ltd||Renewable Energy||₹1,45,263||₹974.5|
|2.||NHPC Ltd||Renewable Energy||₹45,051||₹51|
|3.||SJVN Ltd||Renewable Energy||₹14,147||₹61.15|
|4.||Jaiprakash Power Ventures Ltd||Renewable Energy||₹4,009||₹7.95|
|5.||Virescent Renewable Energy Trust||Renewable Energy||₹1,909||₹114.4|
The solar power share price data is from 28th August 2023. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!
Why Invest in Solar Energy Stocks?
The Rural Electrification Program of 2006 was the first step by the Indian Government towards rural consumption and solar power. To date, the initial growth of the solar industries shares have been dramatic.
The National Action Plan on Climate Change states,
“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 decentralized energy distribution, thereby empowering people at the grassroots level.”
Solar Parks, Solar Rooftop Programs, Net Metering, International Solar Alliance, and many others are the Ministry’s exciting initiatives to encourage clean and renewable energy. Additionally, as part of the Union Budget 2023, the Indian government has increased the budgetary allocation for ‘off-grid’ solar projects. More and more funds are being pushed towards production of solar power generators. Additionally, the government is expected to spend 61 crores in the current fiscal year but has budgeted 360 crores for the next fiscal year.
At last, the country anticipates totalling 15,820 TWh by 2040, hoping for an exciting set of investors to invest in solar industry shares. Consequently, Solar Energy Stocks emerge as a great investment opportunity for investors in India!
Top 3 Solar Energy Stocks in India
Here is an overview of the top 3 Solar Energy Stocks in the stock market in India. These three are the best solar energy companies in India.
The 3 top solar companies in India listed in stock market are as follows:
Adani Green Energy Ltd:
One of the top players of solar industries shares is Adani Green Energy Ltd is a part of the Adani Group. One of India’s largest renewable energy companies. The company is engaged in developing, constructing, operating, and maintaining renewable power projects, including solar and wind energy.
NHPC Limited is a hydroelectric power generation company in India. The company’s primary business is constructing and operating hydroelectric power plants, including run-of-the-river and storage-based projects.
SJVN Limited is another hydroelectric power generation company in India. The company is a joint venture between the Government of India and the Government of Himachal Pradesh. SJVN’s primary business is the construction and operation of hydroelectric power plants.
How to invest in Solar Energy Stocks via smallcase?
Let’s go through a few steps you can follow to invest in Solar Energy Stocks via smallcase:
- Log in with any Indian smallcase broker and enter your password on the smallcase app or website.
- View the Green Energy smallcase managed by Niveshaay. This smallcase is a portfolio of stocks, which will benefit from the energy transition. Energy transition refers to the global energy sector’s shift from fossil-based systems of energy production and consumption — including oil, natural gas, and coal — to renewable energy sources like wind and solar , as well as other sources like biofuels.
- Review your personal details and the billing plan before placing an order. Next, click on ‘Invest now’.
- Lastly, choose between Monthly SIP or One Time payment method.
- Finally, click on ‘Confirm Orders’.
Congrats! You have now invested in Solar Energy Stocks!
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolio of stocks/ETFs, that are based on a theme idea or strategy.
- They’re created and managed by SEBI-registered experts,
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers.
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
Disclosures for Green Energy smallcase
Factors to Consider Before Investing in Solar Industries Share
If you’re considering investing in solar industries shares in India, there are several factors to take into account to ensure a well-informed investment decision, including the performance of the solar industries share and the current state of the solar industries share market in India.
Here are some factors to consider before investing in solar stocks:
- Government Policies and Incentives: Government policies and incentives can significantly impact the growth and profitability of solar industries shares in India. These policies have created a favourable environment for solar energy equipment and helped boost solar energy stocks.
- Portfolio Diversification: Portfolio diversification is crucial when investing in the stock market, including the solar industry’s share. Investing in solar stocks in India can help diversify a portfolio, and you can assess the potential impact of adding solar stocks.
- Competition from Traditional Energy Sources: Solar industries shares face competition from traditional energy sources such as coal, oil, and gas.
India still widely uses these energy sources. Therefore, fluctuations in solar share prices may impact solar energy stocks.
- Global Economic Conditions: Global economic conditions can affect solar industries shares. For example, the COVID-19 pandemic has disrupted global supply chains and impacted the solar industry’s supply of raw materials and components, leading to a temporary decline in solar energy stocks.
Advantages of Investing in Solar Industries Shares
The rising solar energy 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 are listed below:
- Potential for Long-Term Growth: Over the past decade, the solar industry has steadily grown and is expected to continue growing in the coming years. The increasing demand for renewable energy and the declining cost of solar technology will boost the growth for many years.
- Diversification of Portfolio: Investing in solar stocks can help diversify a portfolio and reduce risk. Solar energy stocks can offer a different risk and return profile than traditional energy stocks. Thus, it provides investors with exposure to a different sector of the economy.
- Positive Environmental Impact: Solar energy is a clean and renewable energy source. Investing in solar industries shares can help support the transition to a more sustainable energy system. Investing in solar stocks can help reduce greenhouse gas emissions and mitigate climate change.
- Potential for High Returns on Investment: As the solar share prices continue to grow, there is the potential for high returns on investment. Thus, solar industries shares that can compete effectively in the market continue to innovate and offer growth and profitability.
To Wrap It Up…
To conclude, India has great potential to generate electricity from solar energy and emerge as a solar energy hub. The solar share prices are expected to rise as the Indian government continues to promote solar stocks. Luckily, you don’t have to monitor every share in the solar industry. How?
So, put your money where the sun shines and invest in solar stocks in India with smallcase!
The 3 best Solar Energy companies in India.
1. Adani Green Energy Ltd
2. NHPC Ltd
3. SJVN Ltd
These are the best solar energy stocks in India.
2. How can I invest in Solar Energy stocks?
If you’re interested in investing in the solar sector, consider solar company stocks or ETFs. Another way to benefit from solar energy is by installing solar panels on your own properties, whether residential or commercial, and utilizing net metering to lower your utility expenses.
Solar Parks, Solar Rooftop Programs, Net Metering, International Solar Alliance, and many others are the Ministry’s exciting initiatives to encourage clean and renewable energy. This makes investing in Indian solar industries shares a great buy.
4. Who Should Invest in Solar Energy Stocks?
Investors interested in renewable energy resources, particularly solar power, should consider buying shares in solar industry companies. As solar stocks are on the rise this could attract revenue and profit growth.
5. Can Solar Energy Stocks be profitable for investors?
Investing in solar industries shares offers clean, renewable energy, reduces carbon emissions, lowers electricity bills, provides long-term cost savings, and contributes to a sustainable and eco-friendly future.
6. Which is the largest solar project in India?
The largest solar project in India is the Bhadla Solar Park, located in the Thar Desert of Rajasthan. A joint venture between the Solar Energy Corporation of India (SECI) and the Rajasthan Solar Power Corporation (RSPC).
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