Top Solar Industries Stocks in NSE India for Your Investment Portfolio
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:
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 5Y Avg Return on Investment (%) |
|---|---|---|---|---|---|
| KP Energy Ltd | Renewable Energy | 2,913.35 | 436.85 | 49.95 | 17.23 |
| BF Utilities Ltd | Renewable Energy | 3,298.18 | 875.6 | 326.88 | 14.26 |
| Zodiac Energy Ltd | Renewable Energy Equipment & Services | 1,197.02 | 816.5 | 109.12 | 12.38 |
| KPI Green Energy Ltd | Renewable Energy | 10,630.54 | 1,763.45 | 65.75 | 11.18 |
| SJVN Ltd | Renewable Energy | 51,480.32 | 131 | 56.48 | 9.84 |
| KKV Agro Powers Limited | Renewable Energy | 63.44 | 1,119.20 | 234.98 | 8.78 |
| Orient Green Power Company Ltd | Renewable Energy | 2,073.25 | 21.14 | 53.99 | 7.95 |
| WAA Solar Ltd | Renewable Energy | 237.08 | 178.7 | 35.76 | 7.03 |
| Energy Development Company Ltd | Renewable Energy | 112.86 | 23.76 | -52.25 | 6.8 |
| Adani Green Energy Ltd | Renewable Energy | 281,031.12 | 1,774.15 | 255.48 | 6.64 |
Note: The data in this solar share list, including the solar industries India share price, is from 2nd July 2024. This data is derived from Tickertape Stock Screener.
🚀 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: Overview
Here is an overview of the top Solar Energy Stocks in India in the stock market. The top solar companies in India or solar penny stocks listed in above are as follows:
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. 2,913.35 cr. and a stock price of Rs. 436.85 as of the latest data. K.P. Energy 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 company has a market capitalisation of Rs. 3,298.18 cr. and a stock price of Rs. 875.60. 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. 1,197.02 cr. and a stock price of Rs. 816.50. 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. 10,630.54 cr. and a stock price of Rs. 1,763.45. 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 company has a significant market capitalisation of Rs. 51,480.32 cr. and a stock price of Rs. 131.00. 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 company has a market capitalisation of Rs. 63.44 cr. and a stock price of Rs. 1,119.20. 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 company has a market capitalisation of Rs. 2,073.25 cr. and a stock price of Rs. 21.14. 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 company has a market capitalisation of Rs. 237.08 cr. and a stock price of Rs. 178.70. 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. 112.86 cr. and a stock price of Rs. 23.76. 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. 281,031.12 cr. and a stock price of Rs. 1,774.15. 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:
Disclosures for Green Energy smallcase
Disclosures for Electric Mobility smallcase
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios 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
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. The best Solar energy stocks in India or solar panel stocks in India 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 top solar energy companies in India listed in stock market 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 penny stocks in India, or government solar stocks to yield significant profits.
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 solar energy stocks might be an attractive investment:
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 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 these solar companies:
Focus Area
Solar companies listed on the NSE often specialise in different segments of the solar energy value chain. Some companies may focus on manufacturing solar modules, 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.
Project Experience
When evaluating solar companies, you may want 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 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. You can look at their profitability, debt levels, and future growth prospects. Companies with strong financial metrics 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. Companies 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. 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 start your investment journey:
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 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 solar energy stocks, 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 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.
Factors to Consider Before Investing in Solar Industries Shares
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 top solar stocks in India.
Here are some factors to consider before investing in solar energy stocks-India:
Government Policies and Incentives
Government policies and incentives can significantly impact the growth and profitability of new energy solar industry shares in India. These policies have created a favourable environment for the best solar stocks in India that manufacture solar energy equipment and have helped boost the best solar company shares.
Portfolio Diversification
Portfolio diversification is crucial when investing in the stock market, including the solar energy stocks India. Investing in solar sector stocks in India can help diversify a portfolio, and you can assess the potential impact of adding solar energy shares.
Competition from Traditional Energy Sources
Solar industry shares face competition from traditional energy sources such as coal, oil, and gas. These top solar stocks in India and energy sources are still widely used in India, so fluctuations in the Solar Energy Corporation of India share prices may impact solar energy stocks in India.
Global Economic Conditions
Global economic conditions can affect solar industries shares. For example, the COVID-19 pandemic has disrupted global supply chains, impacting solar power shares. It also impacted the solar industry’s supply of raw materials and components, leading to a temporary decline in solar energy stocks in India. This caused a significant change in solar power stocks India or solar-related stocks and prices.
Risk of Investing in Solar Industries Shares
Here are the two primary risks associated with solar industries shares in India:
- Competition from Traditional Energy Sources: Fluctuations in the prices and demand for these traditional energy sources can impact the performance of solar energy stocks.
- Global Economic Conditions: Global economic conditions can affect solar industries 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.
Advantages of Investing in Solar Industries Shares
The rising solar company 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.
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 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!
FAQs
Based on the 5Y avg return on investment, the 5 best solar energy stocks in our solar share list are as follows:
(a) K.P. Energy Ltd
(b) BF Utilities Ltd
(c) Zodiac Energy Ltd
(d) KPI Green Energy Ltd
(e) SJVN Ltd
Note: This solar power stocks India list is for educational purposes only, and is not recommendatory.
2. How can I invest in solar energy stocks?
If you’re interested in investing in the solar energy listed companies in India, consider solar company stocks or ETFs. Another way to benefit from solar energy is by installing panels from top solar panel manufacturers in India listed in stock exchange on your own properties.
The Ministry’s exciting initiatives to encourage clean and renewable energy include solar parks, rooftop programs, net metering, and the International Solar Alliance. However, it’s crucial to research extensively, evaluate potential risks, and consult financial experts, especially before making any investment choices regarding the top solar stocks in India.
4. Who should invest in solar energy stocks?
Solar industry shares may be a good buy for those interested in investing in renewable energy resources, as the rising solar shares could attract revenue and profit growth.However, investors must do their own research and/or consult a financial advisor before investing in solar energy stocks.
5. 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. This massive solar park has a total capacity of 2,245 megawatts (MW), making it one of the largest in the world.
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