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Top Solar Industries Stocks in NSE India for Your Investment Portfolio

Top Solar Industries Stocks in NSE India for Your Investment Portfolio
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Initially, India’s industrial growth and economic progress were being hampered by acute energy scarcity. As a result, setting up new power plants required the import of highly volatile fossil fuels. Given the current 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 industry 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 or solar panel stocks India to encourage clean energy solutions in the country.In this blog, we will explore the current state of solar energy stocks in India, the reasons for the sudden investor interest, popular solar panel manufacturers in India listed, a solar share list and what readers can expect in the future.

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:

Company NameSub-SectorMarket Cap (in cr)Share Price 5Y Avg Return on Investment
K.P. Energy LtdRenewable Energy₹2,784.30₹414.1517.22
BF Utilities LtdRenewable Energy₹3,583.50₹941.2014.26
Zodiac Energy LtdRenewable Energy Equipment₹1,001.00₹662.7012.38
SJVN LtdRenewable Energy₹56,923.08₹133.699.84
KKV Agro Powers LimitedRenewable Energy₹70.29₹1,240.008.78
Orient Green Power Company LtdRenewable Energy₹2,064.42₹19.607.83
WAA Solar LtdRenewable Energy₹264.87₹187.007.02
Energy Development Company LtdRenewable Energy₹109.25₹22.006.79
NHPC LtdRenewable Energy₹1,02,911.38₹101.056.45
Adani Green Energy LtdRenewable Energy₹3,05,187.61₹1,874.906.14

Note: The data in this solar share list, including the solar industries India share price, is from 27th May 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

K.P. Energy Ltd. is an Indian renewable energy company founded in 2010. They focus on wind power generation, including developing wind farms, constructing wind power projects, and operating and maintaining them. The solar industries share also own and operate some wind turbine generators and a solar power plant. They primarily work on projects in Gujarat, India. KP Energy Ltd is one of the best on our list of solar energy companies in India. As of 27th May 2024, the market capitalisation is Rs. 3,583 cr., stock is ranked 806. The company revenue has grown at a yearly rate of 49.06% over the last 5 years. Furthermore, the market share increased from 2.07% to 2.29% during the same period.

BF Utilities Ltd

BF Utilities Ltd is a diversified infrastructure company headquartered in India. It operates primarily in the energy and infrastructure sectors, with a focus on power generation, transmission, and distribution. The company operates in two segments: WindMills and Infrastructure. They own and operate wind farms and are also the parent company of Nandi Highway Developers and Nandi Infrastructure Corridor Enterprises, responsible for toll roads connecting major Indian cities. As of 27th May 2024, the market capitalisation is Rs. 3,583 cr. At a yearly rate, the company has a revenue growth of 13.5%, over the last 5 years. Furthermore, the company’s market has also increased from 2.07% to 2.29% during the same period.

Zodiac Energy Ltd

Based in Ahmedabad, Zodiac Energy Limited is aN India-based energy solution provider. Founded in 1992, they offer turnkey solar power generation plants, including design, installation, and maintenance for residential, commercial, and industrial clients. With over 100,000 KW of rooftop solar power plants installed, they’re committed to promoting clean energy and are also exploring emerging technologies like electric vehicles and solar water desalination. The small cap solar company has a market capitalisation of Rs. 1,001.00 cr. and is 4.53x as volatile as Nifty. Over the last 5 years, the company’s net income has grown at a yearly rate of 29.21%. Furthermore, the company’s market shares increased from 0.24% to 1.19% during the same period.

SJVN Ltd

SJVN Ltd. is a joint venture between the Indian and Himachal Pradesh governments. They are a Mini Ratna and Schedule A public sector undertaking, which means they are a central government company with a good financial performance record. SJVN Ltd. is in the business of generating electricity through hydropower, thermal power, wind power, and solar power. They also consult on power projects and transmit electricity. With a market capitalisation of Rs. 56,923 cr., the mid cap is 6.49x as volatile as the Nifty. The stock’s debt to equity ratio has been 41.72%, while the current ratio has been 253.55% over the last 5 years. 

KKV Agro Powers Ltd

KKV Agro Powers Ltd is an Indian renewable energy company based in Coimbatore, Tamil Nadu. They focus on developing, owning and operating solar and wind farms to generate electricity. Their current capacity is 10.6 megawatts (MW) spread across wind and solar power generation. They operate in the state of Tamil Nadu and sell the electricity they generate. The small cap company has a market capitalisation of Rs. 70 cr. and is 8.99x as volatile as Nifty. The stock’s 5-yr CAGR is 37.10%. Furthermore, the revenue has grown yearly at 177.35%, vs industry avg of 10.91%.

Orient Green Power Company Ltd

Under the solar energy share in India list, Orient Green Power Company Ltd is an Indian company founded in 2006 focusing on renewable energy generation through wind power plants. They have a total capacity of 402.3 megawatts (MW) across India and projects in Tamil Nadu, Andhra Pradesh, Gujarat, and Karnataka. They also have a 10.5 MW wind farm in Croatia. The small cap company has a market capitalisation of Rs. 2,064 cr. and is 5.34x as volatile as Nifty. The stock’s 5-yr CAGR is 41.35%. Furthermore, the debt-to-equity ratio has been 269.12% over the last 5 years.

WAA Solar Ltd

WAA Solar Ltd is an India-based company that generates solar power. WAA Solar is a Madhav Power Pvt. Ltd subsidiary that operates in the renewable energy, infrastructure, and real estate sectors. The company sets up solar power projects and invests in special-purpose vehicle companies involved in solar power generation activities. The small cap company had market capitalisation of Rs. 264 cr. as of 27th May 2024. The debt-to-equity ratio has been 78.03% over the last 5 years. Furthermore, the stock has a current ratio of 363.75% during the same period.

Energy Development Company Ltd

Energy Development Company is engaged in generating and transmitting electric energy produced by hydroelectric power. The company is also engaged in constructing and maintaining roads, rail beds, bridges, tunnels, and pipelines. As of 27th May 2024, the company has a market capitalisation of Rs. 109 cr. and is 5.75x as volatile as Nifty. However, the company’s market share has decreased from 0.31% to 0.12% over the last 5 years.

NHPC Ltd

NHPC Ltd, a company in the Renewable Energy sector, is engaged in electricity generation through hydroelectric power plants. It is a part of the Utilities industry, focusing on Independent Power and Renewable Electricity Producers. As of 27th May 2024, the company’s market capitalisation is Rs. 1,02,911 cr. The stock’s 5-yr CAGR is 34.09% and is 4.30x as volatile as Nifty. Over the last 5 years, the debt-to-equity ratio has been 65.92%, while the current ratio has been 140.23%.

Adani Green Energy Ltd

Adani Green Energy Limited (AGEL) is an Indian renewable energy company headquartered in Ahmedabad, India. It is majority-owned by the Adani Group and minority-owned by TotalEnergies. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world. With a market cap of Rs. 3,05,187 cr, the stock is ranked 27 as of 27th May 2024. The stock is 4.62x as volatile as Nifty. The company under solar industries India has grown at a yearly return rate of 41.52% over the last 5 years.

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

However, if you’re confused about which stocks to pick, you can explore smallcases:

  1. smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
  2. They’re created and managed by SEBI-registered experts
  3. smallcase.com offers over 200+ stock portfolios, created by 180+ managers
  4. Some of the popular smallcases among new investors are as follows:

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

All Weather Investing smallcase by Windmill Capital

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?

The Rural Electrification Program of 2006 was the first step by the Indian Government towards rural consumption and solar power. The initial growth of the solar industries shares has been dramatic to date. 

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, the 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 funds are being pushed towards producing solar power company share 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 or the best solar panel stocks in India. Consequently, Solar Energy Stocks India emerged as a great investment opportunity for investors in India!

Features of Solar Companies Listed in NSE

Here’s a breakdown of some features you might find across these companies:

  • Focus Area: Solar companies can specialize in different solar energy value chain segments. Some might manufacture solar modules, while others focus on developing solar power plants or EPC (Engineering, Procurement, and Construction) services.
  • Project Experience: Look for companies with a proven track record of completing solar projects. The scale and complexity of their past projects can indicate their expertise.
  • Financial Performance: Evaluating a company’s financial health is crucial. Look at their profitability, debt levels, and future growth prospects.
  • Government Support: The Indian government has ambitious renewable energy targets, and companies well-positioned to benefit from these initiatives could be attractive

How to Invest in Solar Energy Stocks?

To invest in solar energy stocks in India, follow these steps:

  • Research Top Solar Companies: Identify reputable solar energy firms with strong financials and growth potential, like Adani Green Energy and Tata Power Renewable Energy.
  • Evaluate Company Performance: Analyse financial health, growth prospects, and industry outlook to make informed investment decisions.
  • Consider Industry Trends: Assess the regulatory environment, government policies, and market demand for renewable energy.
  • Diversify Portfolio: Spread risk by investing in various solar energy segments and companies.
  • Open a Trading Account: Set up a Demat and trading account to start investing in solar stocks.
  • Place Orders: Buy solar energy stocks through your broker’s platform or directly from the company.

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.

Features of Solar Companies Listed in NSE

Here’s a breakdown of some features you might find across these companies:

  • Focus Area: Solar companies can specialise in different solar energy value chain segments. Some might manufacture solar modules, while others focus on developing solar power plants or EPC (Engineering, Procurement, and Construction) services.
  • Project Experience: Look for companies with a proven track record of completing solar projects. The scale and complexity of their past projects can indicate their expertise.
  • Financial Performance: Evaluating a company’s financial health is crucial. Look at their profitability, debt levels, and future growth prospects.
  • Government Support: The Indian government has ambitious renewable energy targets, and companies well-positioned to benefit from these initiatives could be attractive.

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

1. What are the best 5 solar energy stocks I can buy?

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) SJVN Ltd
(e) KKV Agro Powers 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.

3. Is it a good time to invest in solar energy stocks?

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 are good to buy, especially for those interested in investing in renewable energy resources, thereby solar energy power. As solar shares are rising, this 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.