Best Green Energy Stocks to Buy in India 2023 for Long Term Stock Portfolio Investment

Green energy stocks and 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 recognizing its potential.

Therefore, keep reading to understand more about the top green energy stocks and how investing in renewable energy shares in India can benefit you.

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 is 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 stocks represent companies specialised in clean energy technologies such as solar panels, wind turbines, and hydroelectric dams. Thus, investing in these stocks is 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 green energy shares is the way to go!

How Do You Identify Green and Renewable Energy Investments?

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

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

Types of Green Energy Stocks

Although there are many other green energy stocks in India from which you can earn a profit, we have categorised some direct green energy stocks that are listed below:

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

Best Green Energy Stocks in India (2023)

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

Top 3 Renewable Energy Companies in India

Here is the list of top green energy stocks from the renewable energy sector  in India :

• 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.

• 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.

• 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.

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 sectors. Thus, the Green Credit programme marks the onset of India’s sustainable goals and envisions achieving LiFE (lifestyle for environment) — both domestically and globally. 

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

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 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, including regulatory, market, and technology risks.
• Diversification: Diversify your portfolio by investing in multiple green energy stocks to mitigate risks and maximize returns. 
• Long-Term Perspective: Investing in green energy stocks 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 in India from renewable energy stocks listed on a smallcase app or website. 

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 a profit. Let’s learn how: 

• Growing Industry – The clean energy industry 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.
• 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 clean energy stocks diversifies your portfolio, reducing risks and increasing returns.
• Positive Impact -By investing in clean energy stocks, you are supporting companies that positively impact the environment and society.
• Government Support: Governments worldwide support the clean energy industry with incentives and subsidies, making green energy stocks a favourable investment opportunity.

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

Investing in clean and renewable energy stocks in India is recommended, especially for those who are passionate about the environment, sustainability, and reducing carbon emissions. Above all, these stocks 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 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 in India.

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 are 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