Top Solar Industries Stocks in NSE India for Your Investment Portfolio
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 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 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 stocks in India, a solar share list 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 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 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.
Top 10 Solar Industries to Invest in 2024
The Government of India has begun to realize the importance of solar energy, boosting the momentum of solar industry 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 Name | Sub-Sector | Market Cap (in Cr) | 5Y Avg Return on Investment |
|---|---|---|---|
| KP ENERGY Ltd | Renewable Energy | ₹2,280.13 | 17.23 |
| BF Utilities Ltd | Renewable Energy | ₹2,727.51 | 14.26 |
| Zodiac Energy Ltd | Renewable Energy Equipment | ₹545.39 | 12.38 |
| Adani Power Ltd | Power Generation | ₹2,04,186.35 | 11.20 |
| KPI Global Infrastructure Ltd | Renewable Energy | ₹9,195.21 | 11.18 |
| CESC Ltd | Power Generation | ₹15,257.32 | 10.75 |
| SJVN Ltd | Renewable Energy | ₹48,591.92 | 9.84 |
| KKV Agro Powers Limited | Renewable Energy | ₹66.62 | 8.78 |
| JSW Energy Ltd | Power Generation | ₹81,304.29 | 8.13 |
| Orient Green Power Company Ltd | Renewable Energy | ₹1,927.12 | 7.84 |
Disclaimer: 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 solar power share price data in the solar share list is from 18th March, 2024. However, for real-time updates on stock prices and market trends and the top solar companies in India listed in stock market, 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. 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!
An Overview of the Best Solar Energy Stocks in India
Here is an overview of the top Solar Energy Stocks in India in the stock market. These three are the best solar energy stocks in India.
The top solar companies in India or solar penny stocks listed in above are as follows:
KP 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. This solar industries shares also own and operate some wind turbine generators and a solar power plant. They primarily work on projects in Gujarat, India.
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.
Zodiac Energy Ltd
Based in Ahmedabad, Zodiac Energy Limited is a 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.
Adani Power Ltd
Adani Power is a major Indian power company, subsidiary of the Adani Group. They primarily focus on thermal power generation with a capacity of over 15,250 MW, but also have a small solar plant. They operate across several states in India and are involved in coal trading as well.
KPI Global Infrastructure Ltd
KPI Global Infrastructure Limited began its journey in Mumbai on February 1, 2008. By August 22 of the same year, it secured the Certificate of Commencement of Business. This company specializes in solar power generation, operating under the brand name “Solarism.” It serves as both an Independent Power Producer (IPP) and a service provider to Captive Power Producer (CPP) customers.
CESC Ltd
CESC Ltd., formerly the Calcutta Electric Supply Corporation, is a major Indian player in electricity. They handle generation, with thermal and renewable power plants, and distribution, serving millions of customers in Kolkata and parts of Rajasthan. Founded in 1879, they’re the main provider for Kolkata and have been expanding their reach in recent years.
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.
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.
JSW Energy Ltd
JSW Energy Ltd is a branch of JSW Group. It boasts an installed capacity of 6564 MW, encompassing thermal (3158 MW), wind (1358 MW), hydro (1391 MW), and solar (657 MW) power. Additionally, it jointly manages two 400 KV transmission lines with Maharashtra State Electricity Transmission Company Limited. Furthermore, JSW Energy Ltd holds a 9 MTPA lignite mining capacity in Rajasthan through a partnership with Rajasthan State Mines and Minerals Limited (RSMML).
Orient Green Power Company Ltd
Orient Green Power Company Ltd is an Indian company founded in 2006 that focuses on renewable energy generation through wind power plants. They have a total capacity of 402.3 megawatts (MW) across India with projects in Tamil Nadu, Andhra Pradesh, Gujarat and Karnataka. They also have a 10.5 MW wind farm in Croatia.
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
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 via smallcase?
Let’s go through a few steps you can follow to invest in the best Solar shares in India via smallcase:
- Log in with any 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 that 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.
- Please review your personal details and the billing plan before placing an order. Then, 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!
Disclosures for Green Energy smallcase
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 solar stocks.
- 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 share list.
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. Thereby causing a significant change in solar power stocks India or solar related stocks and 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 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 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. Investing in solar industries shares 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 the solar share prices to 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?
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
The 3 best Solar Energy stocks in our solar share list are as follows:
(a) Adani Green Energy Ltd
(b) NHPC Ltd
(c) 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 sector, consider solar company stocks or ETFs. Another way to benefit from solar energy is by installing solar panels 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 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.
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