Best Long Term Renewable Energy Stocks

The top-performing renewable energy stocks include Ujaas Energy Ltd, which saw a 66.84% 6-month return, followed by Premier Energies Ltd with a 13.05% return. Adani Green Energy Ltd, NHPC Ltd, and SJVN Ltd hold the highest market capitalizations but faced negative returns in the last six months. 

The table below shows the best long term renewable energy stocks based on the highest market capitalisation and 6-month return.

What is Long Term Stock?

Long-term stocks are investments that investors hold for an extended period, usually over five years, to benefit from steady growth and compounding returns. These stocks belong to fundamentally strong companies with consistent revenue, profitability, and market presence, making them suitable for wealth creation and financial stability.

What is Renewable Energy Stock?

Renewable energy stocks represent companies involved in producing and distributing clean energy from sources like solar, wind, hydro, and bioenergy. These stocks are gaining popularity as the global shift toward sustainability and reduced carbon emissions increases demand for eco-friendly energy solutions. Companies in this sector invest in innovative technologies to improve efficiency and expand their market reach.

Features Of Long Term Renewable Energy Stocks

The key features of long-term renewable energy stocks include their potential for consistent growth driven by the increasing global shift toward sustainable energy solutions.  

1. Sustainable Growth Potential – Renewable energy stocks are supported by long-term government incentives and policies promoting clean energy. As the demand for alternative energy sources rises, these stocks offer consistent growth opportunities, making them a viable option for long-term investors seeking stable returns.
2. Technological Advancements – Innovations in solar, wind, and other renewable energy technologies improve efficiency and reduce costs. Companies investing in cutting-edge solutions can gain a competitive edge, ensuring long-term profitability and attracting more investors to the renewable energy sector.
3. Government Support and Regulations – Policies such as subsidies, tax benefits, and clean energy mandates encourage the development of renewable energy projects. These favorable regulations create a stable investment environment, reducing risks and ensuring steady growth in the sector over time.
4. Increased Consumer Demand – With rising environmental awareness, consumers and businesses are shifting towards sustainable energy solutions. This growing demand boosts revenue for renewable energy companies, strengthening their financial position and ensuring higher stock value over the long run.
5. Resilience to Fossil Fuel Price Fluctuations – Unlike traditional energy companies, renewable energy firms are less affected by volatile oil and gas prices. This stability makes renewable energy stocks a reliable long-term investment, particularly during times of economic uncertainty or fossil fuel price instability.

Best Long Term Renewable Energy Stocks

The table below shows the best long term renewable energy stocks based on a 5-year average net profit margin.

Top Long Term Renewable Energy Stocks

The table below shows the top long-term renewable energy stocks based on a 1-year return.

Renewable Energy Penny Stocks India

The table below shows the renewable energy penny stocks in India.

How To Invest In Long Term Renewable Energy Stocks?

Investing in long-term renewable energy stocks requires careful research, selecting financially stable companies, and choosing the right brokerage platform. Evaluating market trends, company fundamentals, and growth potential can help investors make informed decisions for sustained returns in this sector.

1. Research and Analyze Companies – Study financial reports, market position, and historical performance of renewable energy companies in the solar, wind, and hydro sectors. Look for consistent revenue growth, strong sustainability initiatives, and technological advancements to ensure the company’s ability to perform well in the long run.

2. Choose a Reliable Stock Broker – Selecting a trusted brokerage platform like Alice Blue helps investors execute trades efficiently. Alice Blue offers competitive brokerage fees, advanced trading tools, and market insights, making it easier to invest in renewable energy stocks for long-term gains.

3. Diversify Your Portfolio – Instead of investing in a single company, spread investments across multiple renewable energy stocks. This strategy reduces risks and balances potential losses, ensuring a stable portfolio that can withstand market fluctuations and policy changes.

4. Monitor Market Trends and Regulations – Government policies, subsidies, and sustainability goals can impact the renewable energy sector. Regularly tracking industry developments and adjusting investment strategies accordingly can help investors maintain profitability and minimize risks associated with policy changes.

5. Invest for the Long-Term – Renewable energy stocks tend to deliver stable returns over time. Staying invested in strong companies, reinvesting dividends, and avoiding short-term market fluctuations can help investors maximize wealth creation in this growing sector.

Advantages Of Investing In Long Term Renewable Energy Stocks?

The main advantages of investing in long-term renewable energy stocks lie in their growth potential, sustainability, and increasing global demand. These stocks benefit from government incentives, technological advancements, and a shift toward clean energy, making them attractive for long-term investors seeking stability and profitability.

1. Sustainable Growth Potential – Renewable energy stocks offer long-term growth as the world transitions toward clean energy sources. Increased adoption of solar, wind, and hydropower ensures a steady revenue stream for companies, making them attractive investments for future returns.
2. Government Support and Incentives – Many governments provide subsidies, tax benefits, and favorable policies to promote renewable energy. These financial incentives help renewable companies reduce costs, expand operations, and increase profitability, making them more appealing for long-term investors.
3. Lower Environmental and Regulatory Risks – Unlike fossil fuel companies, renewable energy firms face fewer environmental liabilities and regulatory hurdles. As climate policies tighten, these stocks remain resilient, benefiting from a global push toward eco-friendly solutions and reduced carbon emissions.
4. Resilient to Energy Price Volatility – Unlike oil and gas stocks, which fluctuate with commodity prices, renewable energy stocks provide more stable returns. As renewable technology advances and production costs decline, companies achieve better margins and long-term profitability.
5. Technological Advancements Drive Efficiency – Innovations in battery storage, solar panels, and wind turbine efficiency continue to improve profitability. Companies investing in cutting-edge technology gain a competitive advantage, leading to sustained market growth and better stock performance over time.

Risks Of Investing In Long Term Renewable Energy Stocks?

The main risk of investing in long-term renewable energy stocks stems from market volatility, high capital costs, and regulatory uncertainties. While the sector has strong growth potential, investors must consider factors like policy changes, technological disruptions, and competition, which can impact profitability and stock performance.

1. Regulatory and Policy Uncertainty – Government policies and incentives play a crucial role in the renewable energy sector. Any sudden changes, reduction in subsidies, or unfavorable regulations can negatively impact companies’ revenue and profitability, leading to stock price fluctuations and investor concerns.
2. High Capital and Operational Costs – Renewable energy projects require significant initial investments in infrastructure, research, and technology. Companies may face financial challenges in securing funding, and delays in project execution can result in increased costs, affecting long-term stock performance.
3. Technological Disruptions and Competition – Rapid advancements in energy storage, solar, and wind technology create a highly competitive environment. Companies failing to innovate may lose market share, while disruptive technologies can make existing investments obsolete, reducing the growth potential of certain stocks.
4. Intermittent Energy Production Challenges – Unlike fossil fuels, renewable energy sources such as wind and solar depend on weather conditions. Variability in power generation can impact revenue stability, making companies vulnerable to fluctuations in energy supply and demand.
5. Market Volatility and Economic Slowdowns – Renewable energy stocks can be subject to broader market trends and economic conditions. In times of economic downturn, investments in capital-intensive industries may decline, affecting stock prices and overall sector growth.

Introduction to Long Term Renewable Energy Stocks

Adani Green Energy Ltd

AGEL, an Indian holding company, is involved in renewable energy generation and related activities. It specializes in developing, constructing, owning, operating, and maintaining large-scale solar power, wind power, hybrid projects, and solar parks that are connected to the grid. 

The company operates in various markets within India, spanning across approximately 91 locations in different states. AGEL’s power projects are primarily situated in Gujarat Punjab, Rajasthan, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. 

• Close Price ( ₹ ): 971.85
• Market Cap ( Cr ): 153944.2
• 1Y Return %: -42.13
• 6M Return %: -46.96
• 1M Return %: -6.81
• 5Y CAGR %: 40.04
• % Away From 52W High: 123.71
• 5Y Avg Net Profit Margin %: 7.01 

NHPC Ltd

NHPC Limited is an India-based company primarily focused on generating and selling bulk power to various utilities. The company is also involved in project management, construction contracts, consultancy services, and power trading. NHPC is currently working on constructing eight hydropower projects with a total capacity of around 6434 megawatts (MW). 

Its power stations include Salal, Dulhasti, Kishanganga, Nimoo Bazgo, Chutak, Baira Siul, Tanakpur, Dhauliganga, Rangit, Loktak, Indira Saga, Chamera – I, Uri – I, Chamera – II, and Omkareshwa. The company’s consultancy services cover a range of activities including survey, planning, design, construction, operation, maintenance, and renovation of hydropower projects.  

• Close Price ( ₹ ): 75.47
• Market Cap ( Cr ): 75809.88
• 1Y Return %: -13.85
• 6M Return %: -28.46
• 1M Return %: -7.53
• 5Y CAGR %: 24.53
• % Away From 52W High: 56.88
• 5Y Avg Net Profit Margin %: 31.23

Premier Energies Ltd

Premier Energies Ltd is a leading renewable energy company in India, specializing in solar photovoltaic (PV) module manufacturing and solar power solutions. Established in 1995, the company has expanded its operations to include advanced solar cell production and large-scale solar projects. 

With a strong focus on sustainability and clean energy, Premier Energies has played a crucial role in India’s transition to renewable power. The company is known for its cutting-edge technology, high-efficiency solar modules, and commitment to environmental responsibility.    

• Close Price ( ₹ ): 949.50
• Market Cap ( Cr ): 42428.85
• 1Y Return %: 13.05
• 6M Return %: 13.05
• 1M Return %: -28.32 
• % Away From 52W High: 46.18
• 5Y Avg Net Profit Margin %: 2.32 

SJVN Ltd

SJVN Limited, an India-based company, primarily focuses on electricity generation and power generation tariffs. The company offers three main products and services, including electricity generation from hydro, wind, and solar sources, consultancy services, and power transmission. 

Its business portfolio encompasses thermal, hydro, wind, and solar power generation, power transmission, consultancy services, and power trading. SJVN Limited has expanded into wind power generation, completing its first project, the 47.6 MW Khirvire Wind Power Project in Ahmednagar district, Maharashtra. 

• Close Price ( ₹ ): 94.64
• Market Cap ( Cr ): 37191.58
• 1Y Return %: -26.03
• 6M Return %: -37.26
• 1M Return %: -15.21
• 5Y CAGR %: 29.79
• % Away From 52W High: 80.16
• 5Y Avg Net Profit Margin %: 41.4 

Jaiprakash Power Ventures Ltd

Jaiprakash Power Ventures Ltd (JPVL) is a subsidiary of the Jaypee Group, engaged in power generation, transmission, and trading. The company operates hydro, thermal, and coal-fired power plants across India, contributing to the nation’s energy sector. JPVL has a diversified portfolio, including the Vishnuprayag Hydro Power Plant and coal-based plants in Madhya Pradesh. 

The company also has interests in the cement and infrastructure sectors. With a focus on sustainable energy and operational efficiency, JPVL aims to enhance its generation capacity and financial stability. Despite market fluctuations, it remains a key player in India’s power sector with long-term growth potential.   

• Close Price ( ₹ ): 15.73
• Market Cap ( Cr ): 10780.49
• 1Y Return %: -11.13
• 6M Return %: -18.54
• 1M Return %: -10.43
• 5Y CAGR %: 48.20
• % Away From 52W High: 52.57
• 5Y Avg Net Profit Margin %: -7.73

Waaree Renewable Technologies Ltd

Waaree Renewable Technologies Limited is an Indian company specializing in engineering, procurement, and construction (EPC) services for the renewable energy industry. The company focuses on solar projects and the generation of clean energy from renewable sources. They are involved in financing, building, owning, and operating solar projects, both on-site (such as rooftop and ground-mounted installations) and off-site (like open-access solar farms). 

Their services include various solar solutions such as rooftop, floating, and ground-mounted systems, as well as models like capex and renewable energy service company (RESCO). Additionally, they offer operations and maintenance services for solar installations.  

• Close Price ( ₹ ): 991.00
• Market Cap ( Cr ): 10330.83
• 1Y Return %: 35.5
• 6M Return %: -42.57
• 1M Return %: -20.79
• 5Y CAGR %: 221.35
• % Away From 52W High: 206.53
• 5Y Avg Net Profit Margin %: -4.14 

KPI Green Energy Ltd

KPI Green Energy Limited, headquartered in India, is a solar power generation company that focuses on delivering solar energy solutions across various business sectors. The company designs, constructs, owns, operates, and maintains solar power facilities under the brand name Solarism, acting as both an Independent Power Producer (IPP) and Captive Power Producer (CPP). 

The IPP division oversees the development and maintenance of grid-connected solar power projects, while selling the power generated by the company’s solar plants. The CPP division is responsible for developing, transferring, operating, and maintaining grid-connected solar power projects, which are then sold to customers. 

• Close Price ( ₹ ): 349.85
• Market Cap ( Cr ): 6888.22
• 1Y Return %: -4.91
• 6M Return %: -44.51
• 1M Return %: -38.61 
• % Away From 52W High: 113.04
• 5Y Avg Net Profit Margin %: 16.65 

Ujaas Energy Ltd

Ujaas Energy Limited is an Indian company specializing in providing solutions for the solar power sector, with a focus on developing, operating, owning, and maintaining a diverse portfolio of solar energy power plants under the UJAAS brand. The company operates in three segments: Solar Power Plant Operation, Manufacturing and Sale of Solar Power Plants, and Electric Vehicles (EV). Ujaas Energy offers several products, including Ujaas Park, Ujaas My Site, Ujaas Home, and UJAAS. 

Ujaas Park provides a comprehensive turnkey solution for investors looking to become solar power producers through renewable energy certificates, preferential tariffs, average power purchase cost (APPC), or captive mechanisms.  

• Close Price ( ₹ ): 446.20
• Market Cap ( Cr ): 4757.68
• 1Y Return %: 1958.12
• 6M Return %: 66.84
• 1M Return %: -18.53
• 5Y CAGR %: 159.39
• % Away From 52W High: 58.91
• 5Y Avg Net Profit Margin %: -69.43 

BF Utilities Ltd

BF Utilities Limited, an India-based holding company, is primarily involved in the electricity generation sector through windmills and infrastructure activities. The company operates through two main segments: Wind Mills and Infrastructure. 

In the wind energy aspect, the company’s project comprises more than 51 wind energy generators with capacities exceeding 230 kilowatts and about 11 generators surpassing 600 kilowatts. Under the Infrastructure segment, its subsidiaries, such as Nandi Highway Developers Ltd (NHDL) and Nandi Infrastructure Corridor Enterprises Ltd (NICE), play key roles.  

• Close Price ( ₹ ): 768.65
• Market Cap ( Cr ): 2895.32
• 1Y Return %: 28.57
• 6M Return %: -5.46
• 1M Return %: -20.55
• 5Y CAGR %: 20.10
• % Away From 52W High: 46.89
• 5Y Avg Net Profit Margin %: 8.67 

K.P. Energy Ltd

KP Energy Limited, established in 2010 and headquartered in Surat, Gujarat, specializes in wind farm development and renewable energy solutions across India. The company offers comprehensive services, including engineering, procurement, construction, and commissioning (EPCC), as well as operations and maintenance (O&M) for wind power projects. 

As of 2024, KP Energy has energized over 898 MW of wind power capacity and maintains an Independent Power Producer (IPP) portfolio of 48.5 MW. The company is publicly listed on both the NSE and BSE stock exchanges.

• Close Price ( ₹ ): 376.20
• Market Cap ( Cr ): 2508.88
• 1Y Return %: 17.32
• 6M Return %: -9.76
• 1M Return %: -33.00
• 5Y CAGR %: 80.73
• % Away From 52W High: 79.43
• 5Y Avg Net Profit Margin %: 8.43

Long Term Renewable Energy Stocks – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.