Home Collections Buy Renewable Shares in India 2024 for Long Term Stock Portfolio Investment

Buy Renewable Shares in India 2024 for Long Term Stock Portfolio Investment

Buy Renewable Shares in India 2024 for Long Term Stock Portfolio Investment
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Green energy stocks and the top renewable energy stocks in India are rapidly gaining momentum. The country is pushing towards achieving its target of 450 GW of renewable energy capacity by 2030. Since India is the world’s third-largest energy consumer, investors are slowly recognizing its growth potential.
Therefore, keep reading to understand more about the top green energy stocks and how investors can invest in renewable energy shares in India.

Why Switch to Green Energy?

Imagine a world where the sky is crystal clear, the air is crisp, and the natural beauty of our planet is preserved. A world where we don’t have to worry about the harmful effects of fossil fuels and where we can enjoy an abundance of renewable and clean energy sources that are both affordable and accessible to all.

This is the world we can create if we switch to green energy. By adopting clean and renewable energy sources such as solar, wind, and hydropower, we can significantly reduce our carbon footprint and mitigate the effects of climate change. At present, investing in renewable energy is better for our environment as it is more sustainable, cost-effective, and reliable than traditional energy sources.
Therefore, by switching to green energy, we can create a brighter and more sustainable future for ourselves and future generations. It’s time to take action and switch to green energy – for the planet, health, and future by investing in green energy stock portfolio.

What are Green Energy Stocks?

Clean and renewable energy stocks are like the superheroes of the stock market

They are eco-friendly, planet-saving champions that harness the power of the sun, wind, and water to generate electricity without harming the environment. Additionally, these best green energy penny stocks in renewable energy in India represent the renewable energy companies in India potentially specialising in clean energy technologies such as solar panels, wind turbines, and hydroelectric dams. Thus, investing in these best renewable energy stocks can be a smart financial decision and a responsible choice to support the transition towards a greener and more sustainable future. 

However, if you want to be a part of the renewable energy revolution, investing in renewable energy share in India can be a good investment.

How Do You Identify Green and Renewable Energy Investments?

Several green investments target a basket of renewable energy companies in India that are deeply invested in sustainable development in the renewable energy sector in India, like the best solar energy stocks India.

In smallcase, we have green portfolios comprising renewable energy companies in India that primarily focused on renewable energy sources in India. Thus, investors can analyse the use of renewable energy, green technology, and eco-friendly practices. Afterwards, an investor can consider their environmental, social, and governance (ESG) performance to make an informed investment decision.

Types of Green Energy Stocks

Although there are many other green energy stocks in India, we have categorised some direct green energy stocks that are listed below:

  • Clean energy stocks: Green energy penny stocks in India of companies that produce and provide clean and renewable energy, such as solar, wind, hydro, geothermal, and bioenergy.
  • Solar energy stocks India: Solar Energy Stocks India are primarily solar energy stocks, including renewable energy companies in India that produce solar panels and provide installation services for residential, commercial, and utility-scale solar power projects.
  • Wind energy stocks in India: The best renewable energy stocks in India are primarily composed of wind energy stocks or companies in India, including renewable energy companies in india that produce wind turbines and provide installation services for onshore and offshore wind farms. These wind energy stocks make great green energy shares for investments.
  • Hydro energy stocks: Green energy companies in India that operate hydroelectric power plants that can generate electricity from the natural water flow.
  • Geothermal energy stocks: Green energy Companies in India that develop geothermal power plants that can generate electricity by harnessing the earth’s natural heat.
  • Bioenergy: Green energy companies in India that can potentially produce and distribute biofuels, such as ethanol and biodiesel, and operate biomass power plants from organic matter.

Best Green Energy Stocks in India (2024)

Here is the list of top green energy stocks in India and green energy share price in India:

Stock NameMarket Cap (in Cr)Share Price
Zodiac Energy Ltd₹448₹294.55
KP ENERGY Ltd₹2,112₹983.4
Borosil Renewables Ltd₹6,627₹608.75
Websol Energy System Ltd₹1,153₹306.7
NTPC Ltd₹2,98,851₹308.85
Adani Green Energy Ltd₹2,65,848₹1,641.35
JSW Energy Ltd₹83,807₹488.8
Inox Wind Energy Ltd₹6,325₹5,142.05
BF Utilities Ltd₹2,209₹587.6
Reliance New Energy Ltd₹18,35,733₹2,687.75
Tata Power Solar Systems Ltd₹1,10,510₹356.95
Sterling & Wilson Ltd₹11,747₹550.1
Orient Green Power₹2,236₹23

Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on the top green energy companies in India in the list is from 24th January 2024.  However, for real-time updates on green energy share prices and market trends, visit the smallcase stocks collection today!

Why Invest in Green Energy Stocks?

Global energy demand is on a steady upward trajectory, projected to surge by almost 50% by 2050, fueled by emerging economies and developing nations. Simultaneously, scientists warn of escalating temperatures attributed to greenhouse gasses like carbon dioxide. The looming rise of over two degrees Celsius prompts nations to explore alternatives to fossil fuels, creating a market niche for investors keen on green energy opportunities.

Top 10 Renewable Energy Companies in India: An Overview

Here is the list of top 10 green energy stocks India from the renewable energy sector in India from our curated green energy stocks list mentioned above:

Zodiac Energy Ltd

Based in Ahmedabad, Gujarat, Zodiac Energy is an experienced player in the renewable energy sector, offering services such as solar power system design, wind power project development, and EPC services. With a strong track record, they have completed over 1,000 MW of renewable energy projects, making them one of the best green energy stocks India for 2024 investment in renewable energy. 

KP Energy Ltd

KP Energy is a key balance of plant (BoP) solutions provider for wind energy projects in Gujarat, India. Their services encompass EPC, operation and maintenance, and asset management, with a successful track record of over 1 GW of wind energy projects. It is one of the top green energy stocks India on our list.

Borosil Renewables Ltd

The development of India’s renewable energy sector is facilitated by Borosil Renewables, the sole manufacturer of solar glass in the country, which produces a variety of solar glasses for use in solar modules, thermal collectors, and water heaters. It is also one of the top green energy stocks on our list!

Websol Energy System Ltd

Websol Energy Systems generated Rs. 0.92 Cr. in revenue over the past 12 months, experiencing a significant annual revenue decline of -91%. The pre-tax margin stands at -183%, indicating a need for improvement, and the ROE is at -12%, reflecting a poor performance that also requires attention. However, it still belongs to the top list of top green energy stocks in India.

NTPC Ltd

NTPC Ltd earned a robust operating revenue of Rs. 176,913.20 Cr. in the past year, showcasing an impressive 32% annual growth. With a healthy pre-tax margin of 13% and a commendable return on equity (ROE) of 11%, the company exhibits strong financial performance. It is also one of the top shares on our green energy stocks India list.

Adani Green Energy Ltd

Adani Green Energy generated an impressive operating revenue of Rs. 8,967.00 Cr. in the last 12 months, boasting a remarkable annual growth rate of 55%. Noteworthy financial metrics include a pre-tax margin of 18% and a respectable return on equity (ROE) of 16%.

JSW Energy Ltd

Jsw Energy generated an impressive operating revenue of Rs. 11,105.33 Cr. in the last 12 months, showcasing a remarkable annual growth of 24%. While the ROE stands at 7%, there is room for improvement in this area. JSW Energy is also one of the best stocks on the green energy share list 2024. 

Inox Wind Energy Ltd

In the past year, Inox Wind Energy generated Rs. 1,136.36 Cr. in operating revenue. However, there is room for improvement as there’s an annual revenue de-growth of -5%, a pre-tax margin of -94%, and a ROE of -33%, indicating areas that require attention. It is also one of the best green energy stocks in India for 2024 investments.

BF Utilities Ltd

Bf Utilities generated an impressive operating revenue of Rs. 878.94 Cr. in the last 12 months, showing a remarkable annual growth of 45%. The pre-tax margin stands at a commendable 36%, indicating financial strength. However, the ROE is currently at -135%, signaling a need for improvement. It is one of the best green energy stocks in India for 2024.

Reliance New Energy Ltd

Reliance Industries Limited is engaged in refining, manufacturing of refined petroleum products, petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms. It is also one of the best green energy stocks in India from our list!

While the list of renewable energy companies in India is endless, before making any investment decision, conduct thorough research and consider your risk tolerance.

Union Budget 2023-24: Green Energy Stocks Take a Hike

Green growth” refers to a sustainable approach to economic development that minimizes the impact of economic activities on the environment as per the Ministry of New and Renewable Energy – Government of India. Thus, due to the depletion of renewable energy sources, green growth has found prominence in the Union Budget 2023-24, as announced by Finance Minister Nirmala Sitaraman on January 31st, 2023.

Among many others, green growth is among the seven priorities or saptarishi that could guide India into Amrit Kaal.  

Sitaraman recalls that a variety of programs for green fuel, green energy, green farming, green mobility, green buildings, and green equipment are being implemented, along with policies for efficient energy use across various economic renewable energy sectors. Thus, the Green Credit programme marks the onset of India’s sustainable goals and can help in achieving LiFE (lifestyle for environment) — both domestically and globally. 

How to Invest in the Top Green Energy Stocks in India?

Investing in green energy stocks requires a strategic approach to align with environmental goals and financial objectives. Begin by conducting thorough research on the renewable energy sector, understanding key players, recent trends, and regulatory developments. Diversification is crucial; consider a mix of solar, wind, hydro, and other sustainable energy sources to spread risk.

Stay informed about a company’s commitment to sustainability, examining factors such as their carbon footprint, renewable energy investments, and overall environmental impact. Financial health is paramount, so analyze a company’s balance sheet, revenue growth, and profitability.

Keep a watchful eye on market trends and global events influencing the green energy sector. Explore investment options through reputable brokerage platforms, ensuring they align with your risk tolerance and investment horizon. Regularly review your green energy stock portfolio, adjusting as needed based on market dynamics and evolving industry trends.

In summary, investing in green energy stocks India involves diligent research, diversification, and a keen focus on both environmental and financial metrics.

smallcase Green Energy Portfolios

The Union Budget 2023-24 is centered around welcoming sustainable development. 

  • Green Growth was based on the Prime Minister’s vision of LiFE or Life for Environment. 
  • By 2070, the Government of India plans for net-zero carbon emissions offering ₹35,000 crore for energy transition objectives. 
  • The recently launched National Green Hydrogen Mission facilitates the economy’s transition to low carbon intensity with an annual production of 5 MMT by 2030.

If you’re looking to learn and invest in a list of Hydrogen Stocks and the renewable energy sector in India, refer to the blog on the best Green Hydrogen stocks today!

Here are two popular smallcase Green Energy portfolios:

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

Factors to Consider Before Investing in Green Energy Stocks

  • Government Policies: Analyse the impact of government policies, incentives, and subsidies on the growth of green energy.
  • Innovation: Look for companies that potentially invest in innovation and new technologies, as they have higher chances of growth.
  • Competition: Evaluate the competition and market trends in the green energy industry, and invest in companies that have a competitive edge.
  • ESG Performance: Consider the company’s environmental, social, and governance (ESG) performance, indicating long-term sustainability.
  • Risk: Assess the risks associated with investing in green energy stocks NSE, including regulatory and potential technology risks.
  • Diversification: Diversify your portfolio by investing in multiple green energy smallcase stocks list to mitigate risks and maximize returns. 
  • Long-Term Perspective: Investing in the best renewable energy stocks in India requires a long-term perspective, as the industry is still evolving, and the returns may take time to materialize.

However, it can be a little overwhelming for you to analyze and research at every step. Thus, at smallcase, we have SEBI-registered research analysts who do tons of research, so you don’t have to. Now, you can easily invest in green energy stocks India from the best renewable energy stocks in India listed on a smallcase app or website. 

Features of Green Energy Stocks in India

Here are a few key features of Green Energy Stocks in India:

Commitment to Environmental Responsibility

Green energy stocks in India predominantly represent companies deeply committed to environmental responsibility. These firms prioritize renewable energy sources such as solar, wind, and hydropower. Their operations align with eco-friendly practices, reflecting a dedication to sustainable energy solutions.

Resilience to Economic Fluctuations

A notable feature of renewable energy stocks India is their resilience to certain economic fluctuations. This resilience is driven by the increasing global emphasis on sustainable practices. As the world pivots towards cleaner energy alternatives, investments in these renewable energy stocks India offer a level of stability compared to some traditional sectors.

Government Support and Initiatives

Green energy stocks in India benefit from robust government support and initiatives. Policies favoring clean energy play a pivotal role in enhancing the growth potential of these green energy stocks. The regulatory backing creates a favorable environment for investors looking to participate in the burgeoning green energy sector.

Innovation and Technological Advancements

The green energy sector is characterized by a constant drive for innovation and technological advancements. Companies engaged in research and development of cutting-edge technologies for renewable energy solutions have the potential to experience substantial market gains. This innovation-centric aspect adds dynamism to the investment landscape.

Consideration of Regulatory Landscape

Investors in green energy stocks need to be vigilant about the regulatory landscape. The sector is subject to policy changes and government interventions that can significantly impact the performance of these green renewable energy stocks India. Staying informed about regulatory shifts is crucial for making well-calculated and informed investment decisions in this rapidly evolving and transformative sector.

Risks of Investing in Green Energy Stocks

Here are a few risks of investing in Solar Energy Stocks India or Green Energy Stocks:

Heavy Reliance on Thermal Energy

India’s predominant reliance on thermal energy, specifically coal-based power, stands at 75% in FY 2022-2023. This dependence is rooted in the widespread availability and cost-effectiveness of fossil fuels. The transition to alternative energy sources is a gradual process, challenging the possibility of an immediate shift. It is also one of the top shares on the green energy stocks list 2024. 

Renewable Energy Production and Distribution Challenges

Beyond the generation of renewable energy, challenges extend to maintenance, distribution, and storage of the resources of these green shares. Green sources like solar and wind energy are constrained by their intermittent nature, tied to sunlight and wind availability. The irregularity in the supply of clean energy poses hurdles for reliable and consistent power distribution presenting a challenge in green energy stocks investments. 

Demand-Supply Gap and Peak Energy Requirements

Addressing the demand-supply gap proves challenging, especially considering the higher energy requirements in the evening in India. The fluctuating demand patterns create complexities in ensuring a stable and continuous supply of energy, making it a persistent issue in the country’s energy landscape.

Intermittency of Renewable Sources and Seasonal Variations

The availability of solar and wind energy is subject to natural conditions, with sunlight limited to daytime and wind patterns influenced by geography and climate. This intermittency and seasonality contribute to an uneven supply of clean energy, posing a challenge to creating a reliable and consistent energy grid.

Cost Inefficiencies in Energy Storage Solutions

While efficient energy storage, particularly through batteries, could be a solution, the current cost-effectiveness of this method remains a barrier. The expenses associated with advanced storage technologies hinder their widespread adoption, requiring further advancements and cost reductions for sustainable integration into the renewable energy landscape.

Optimizing Battery Storage for Sustainable Transformation

Despite current challenges, there is optimism regarding the potential of batteries as a sustainable storage option for renewable energy. Technological advancements and improved infrastructure could pave the way for cost-efficient and scalable battery storage solutions, facilitating the transition towards a greener and more sustainable energy future. According to AK Saxena of TERI, despite these hurdles, a substantial 42% of India’s energy could be sourced from renewables by 2030.

How is Investing in Clean Energy Stocks in India Beneficial?

Investing in green energy stocks in India can be a smart and exciting way to help the environment while potentially earning profit. Let’s learn how: 

  • Growing Industry: The clean energy industry or wind energy stocks is rapidly growing, and thus, investing in it can result in high returns.
  • Sustainable: Clean energy sources like solar and wind energy and hydro are sustainable and will continue to generate power in upcoming years, rising the demand for wind energy stocks.
  • Reduced Carbon Footprint: Clean energy helps reduce carbon emissions, which is good for the planet. 
  • Green Job Creation: The clean energy industry is creating new job opportunities, contributing to economic growth.
  • Diversification: Investing in renewable energy stocks India diversifies your portfolio, reducing risks and increasing returns.
  • Positive Impact: By investing in clean energy stocks, you are supporting green energy companies in India NSE that positively impact the environment and society.
  • Government Support: Governments worldwide support the clean energy industry with incentives and subsidies, making green energy stocks potentially good investment opportunities.

Who Should Invest in Clean & the Top Renewable Energy Stocks in India?

Investing in clean and renewable energy stocks India is recommended, especially for those who are passionate about the environment, sustainability, and reducing carbon emissions. Above all, these green energy penny stocks India offer an opportunity to invest in companies prioritising eco-friendly practices and green technology. It can be an excellent deal if you prioritise long-term green energy investments and want to contribute to a more sustainable future. As a result, you can gain favourable returns by investing in clean and best renewable energy stocks India.

As always, investors must do their own research and/or consult their financial advisor before investing.

To Wrap It Up…

To conclude, the green energy and renewable stocks industry in India is a growing sector with immense potential. Thus, if green energy shares catch your eye, there can be plenty of direct approaches through which you can make your portfolio green. However, you don’t have to choose individual companies to invest in green energy and renewable stocks in India. Nonetheless, at smallcase, we have a basket of the best-performing companies created by professionals and backed by tons of research. So, go green with smallcase today!

FAQs

1. What are the best 3 stocks of the Green Energy industry can I buy in India?

Some of the top renewable energy stocks in India from the renewable energy stocks list include Tata Power Renewable Energy Ltd, Adani Green Energy Ltd, and Suzlon Energy Ltd.

Note: This list is for educational purposes only, and is not recommendatory.

2. How can I invest in Green Energy sector stocks in India?

In India, you can invest in renewable energy stocks through various means, such as opening a brokerage account with a trusted Indian stockbroker or using online trading platforms or via smallcase.

3. Is it a good time to invest in Green Energy stocks in India?

The timing of your investment should align with your financial goals and risk tolerance, rather than market timing. The Green Energy sector in India offers long-term growth potential due to the increasing focus on Indian renewable energy sources. Investors must consider their investment goals and risk appetite before investing in green energy stocks.

4. Who Should Invest in Green Energy Sector Stocks in India?

Investors in India who believe in the future of clean and renewable energy and have a long-term investment horizon can potentially consider green energy stocks. However, one must consider their investment goals and risk appetite before investing.