Solar Energy Stocks – Best Solar Energy Stocks in India

Solar energy stocks refer to shares of companies involved in producing solar panels, photovoltaic cells and related technologies for harnessing solar power. These companies focus on renewable energy solutions, offering potential growth opportunities as demand for clean, sustainable energy sources rises globally, driven by environmental policies and innovation.

The table below shows the solar energy stocks – best solar energy stocks in India based on the highest market capitalisation and 1-year return.

Introduction To Solar Energy Stocks

Reliance Industries Ltd

The Market Cap of Reliance Industries Ltd is Rs. 1,982,145.99 crores. The stock’s monthly return is 1.96%. Its one-year return is 20.63%. The stock is 9.83% away from its 52-week high.

Reliance Industries Limited is a company based in India that is involved in various activities such as hydrocarbon exploration and production, petroleum refining, marketing, petrochemicals, advanced materials, composites, renewables (solar and hydrogen), retail and digital services. 

The company operates in segments including Oil to Chemicals (O2C), Oil and Gas, Retail and Digital Services. The O2C segment comprises refining, petrochemicals, fuel retailing, aviation fuel, bulk wholesale marketing, transportation fuels, polymers, polyesters and elastomers.  

NTPC Ltd

The Market Cap of NTPC Ltd is Rs. 382,824.38 crores. The stock’s monthly return is -2.83%. Its one-year return is 70.25%. The stock is 7.98% away from its 52-week high.

NTPC Limited is an India-based company that specializes in power generation. The company’s main focus is on producing and selling large quantities of power to State Power Utilities. NTPC operates in two main segments: Generation and Others. 

The Generation segment is responsible for producing and selling power to state power utilities, while the Other segment provides services such as consultancy, project management, energy trading and more. NTPC owns and operates a total of 89 power stations in different Indian states, either on its own or through joint ventures and subsidiaries.  

Adani Green Energy Ltd

The Market Cap of Adani Green Energy Ltd is Rs. 295,152.77 crores. The stock’s monthly return is 4.97%. Its one-year return is 85.20%. The stock is 16.68% away from its 52-week high.

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 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.  

JSW Energy Ltd

The Market Cap of JSW Energy Ltd is Rs. 123,776.07 crores. The stock’s monthly return is 3.55%. Its one-year return is 85.60%. The stock is currently 5.98% away from its 52-week high.

JSW Energy Limited, an Indian power company, is involved in power generation through both thermal and renewable sources. The company’s operations are divided into two segments: Thermal, which focuses on producing power from coal, lignite, gas and oil, along with related services and Renewables, which involves power generation from hydro, wind and solar sources, along with associated services. 

The company owns and operates plants such as Baspa, Karcham Wangtoo, Barmer, Vijaynagar and Ratnagiri. The Baspa Plant, situated in the Himalayas, has a capacity of around 300 MW. The Karcham Wangtoo plant, located along the Satluj River in Himachal Pradesh, has a capacity of approximately 1091 MW.  

NHPC Ltd

The Market Cap of NHPC Ltd is Rs. 96,522.74 crores. The stock’s monthly return is -1.22%. Its one-year return is 80.28%. The stock is 23.22% away from its 52-week high.

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). The company’s consultancy services cover a range of activities including survey, planning, design, construction, operation, maintenance and renovation of hydropower projects. NHPC’s subsidiaries include Loktak Downstream Hydroelectric Corporation Limited and Chenab Valley Power Projects Private Limited.

SJVN Ltd

The Market Cap of SJVN Ltd is Rs. 51,287.76 crores. The stock’s monthly return is -6.42%. Its one-year return is 110.33%. The stock is 30.64% away from its 52-week high.

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.  

Sterling and Wilson Renewable Energy Ltd

The Market Cap of Sterling and Wilson Renewable Energy Ltd is Rs. 16,460.45 crores. The stock’s monthly return is 13.48%. Its one-year return is 92.67%. The stock is 17.39% away from its 52-week high.

Sterling and Wilson Renewable Energy Limited is an Indian company that offers comprehensive renewable energy engineering, procurement and construction (EPC) solutions on a global scale. 

Specializing in utility-scale solar power projects, the company focuses on project design, engineering and overseeing all aspects of project execution from inception to completion. In addition to EPC services, the company also offers operations and maintenance (O&M) services for projects developed by external parties. The company is divided into two segments: EPC and O&M.  

KPI Green Energy Ltd

The Market Cap of KPI Green Energy Ltd is Rs. 11,452.47 crores. The stock’s monthly return is -9.14%. Its one-year return is 206.66%. The stock is 28.14% away from its 52-week high.

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.  

Borosil Renewables Ltd

The Market Cap of Borosil Renewables Ltd is Rs. 6,521.67 crores. The stock’s monthly return is -2.18%. Its one-year return is 13.53%. The stock is 33.98% away from its 52-week high.

Borosil Renewables Limited, an India-based company, specializes in the production of low-iron textured solar glass used in photovoltaic panels, flat plate collectors and greenhouses. Their product line includes Selene, an anti-glare solar glass suitable for PV installations near airports and Shakti, a solar glass with a matt finish. 

They also offer various other types of solar glass such as fully tempered glass, antimony-free glass and glass with anti-reflective and anti-soiling coatings. In addition to solar glass, the company manufactures speciality glasses. Under the brand BOROSIL, the company produces lab ware, scientific ware and consumer ware products. Currently, their solar glass manufacturing capacity stands at 450 tons per day. 

Gensol Engineering Ltd

The Market Cap of Gensol Engineering Ltd is Rs. 3,666.09 crores. The stock’s monthly return is -2.28%. Its one-year return is 38.46%. The stock is 47.46% away from its 52-week high.

Gensol Engineering Limited is an India-based company specializing in engineering, procurement and construction (EPC) and solar advisory services. It offers technical due diligence, detailed engineering, quality control, construction supervision and consulting for solar projects in various regions, including India. 

Gensol provides advisory services to project developers, institutions, solar EPC companies and government policymakers. The company operates through three segments: EPC, EV Leasing and EV Manufacturing.  

What are Solar Energy Stocks?

Solar energy stocks represent shares in companies that are involved in the production, development and implementation of solar energy technology and solutions. These firms may engage in manufacturing solar panels, installing solar systems, or developing solar energy projects.   

Investing in solar energy stocks allows individuals to support the growth of renewable energy while potentially benefiting from the financial success of companies within the solar sector. As the global demand for sustainable energy continues to rise, these stocks can present opportunities for growth in both environmental impact and profitability.

Features of Solar Energy Stocks

The key features of solar energy stocks include their growing demand, driven by the global transition to renewable energy. These stocks offer investors opportunities to capitalize on environmentally sustainable businesses with long-term growth potential and government support.

1. High Growth Potential: Solar energy stocks benefit from increasing global energy needs and sustainability goals. As governments and corporations shift toward clean energy, the market for solar products and services is projected to expand significantly over the coming decades.
2. Government Incentives: Many countries offer subsidies and tax breaks to encourage renewable energy adoption. Solar energy companies often receive financial incentives that improve profitability, making these stocks more attractive to investors focused on green energy solutions.
3. Technological Advancements: Constant innovation in solar technologies, such as improved efficiency and storage, drives growth in the sector. These advancements not only lower operational costs but also make solar energy more accessible and affordable, boosting stock value.
4. Environmental Sustainability: Solar energy stocks align with the growing focus on sustainable and responsible investing (SRI). By investing in solar, investors support eco-friendly initiatives that reduce carbon emissions and promote clean energy solutions, appealing to ethical investors.
5. Long-Term Contracts: Solar energy companies often secure long-term contracts with governments and large corporations. These contracts provide predictable cash flows and reduce volatility in earnings, offering stability for investors looking for consistent returns.

Best Solar Energy Stocks in India

The table below shows India’s best solar energy stocks based on 6-month return.

Solar Energy Stocks List

The table below shows the solar energy stocks list based on 5-year average net profit margin.

Top 10 Solar Energy Stocks in India

The table below shows the top 10 solar energy stocks in India based on 1 month return.

High Dividend Yield Solar Energy Stocks

The table below shows the best solar energy stocks based on dividend yield.

Historical Performance Of List Of Solar Energy Stocks in India

The table below shows the historical performance of a list of solar energy stocks in India.

Factors To Consider When Investing In Top Solar Energy Stocks In India

The factor to consider when investing in top solar energy stocks in India is the growing demand for renewable energy. India’s focus on clean energy solutions positions solar power companies to benefit from government incentives and increased consumption.

1. Government Policies: Favorable government policies, such as subsidies and tax benefits, drive the growth of solar energy companies. Investors should monitor policy changes that can impact the financial health and profitability of solar firms.
2. Technological Advancements: Continuous innovation in solar energy technology enhances efficiency and reduces costs. Companies investing in R&D for improved solar panels and energy storage systems are more likely to have long-term growth potential in the Indian market.
3. Financial Health of Companies: Investors should evaluate the financial strength of solar companies, focusing on revenue growth, debt levels and profitability. Strong balance sheets are crucial for weathering market fluctuations and funding expansion projects effectively.
4. Energy Demand and Market Growth: India’s growing population and industrialization create a rising electricity demand. Solar energy companies that can capitalize on this trend through large-scale projects may offer significant returns to investors in the long run.
5. Sustainability Initiatives: Companies with strong environmental, social and governance (ESG) practices are more attractive to institutional investors. Firms that demonstrate a commitment to sustainability will likely experience better stock performance due to increased investor interest.

How To Invest In Solar Energy Stocks?

To invest in solar energy stocks, open a trading account with a reliable brokerage like  Alice Blue. Research top solar companies, analyze their performance and monitor market trends. Choose long-term growth stocks, diversify your portfolio and keep an eye on government policies supporting renewable energy to make informed investment decisions in this sector.

Impact Of Market Trends On Solar Energy Stocks List

Market trends significantly influence solar energy stocks, reflecting broader economic conditions and technological advancements. As governments worldwide prioritize renewable energy, increased investments lead to higher stock valuations. This trend is amplified by growing consumer demand for sustainable solutions, which encourages companies to innovate.

Moreover, fluctuations in fossil fuel prices can drive investors toward solar stocks as a more stable alternative. As solar technology becomes more efficient and affordable, market adoption accelerates, further boosting stock performance.

Finally, regulatory incentives and subsidies enhance market conditions, making solar energy stocks increasingly attractive to investors seeking long-term growth.

How do Solar Energy Stocks in India Perform in Volatile Markets?

The performance of these stocks can be influenced by a variety of factors, including government policies, technological advancements and the overall economic climate. Investors often look for insights into how these companies manage challenges in unpredictable environments.  

In recent years, the Indian solar market has seen significant growth, attracting both domestic and foreign investments. However, global economic fluctuations can impact the solar sector. Understanding these dynamics is crucial for investors seeking to navigate the ups and downs of the market effectively.

Benefits of Solar Energy Stocks in India

The primary advantage of solar energy stocks is the growing demand for renewable energy. As India shifts towards sustainable solutions, companies in this sector are poised for substantial growth, appealing to environmentally conscious investors.

1. Government Support: The Indian government is actively promoting solar energy through various incentives and policies. This support includes subsidies and tax benefits, making it a favourable environment for solar companies to thrive and attract investment.
2. Rising Energy Needs: With India’s rapid urbanization and population growth, the energy demand continues to rise. Solar energy provides a sustainable solution to meet these increasing energy requirements, enhancing the attractiveness of related stocks.
3. Technological Advancements: Innovations in solar technology are driving down costs and improving efficiency. Companies that invest in cutting-edge solutions are likely to gain a competitive edge, resulting in better returns for investors in the solar energy sector.
4. Environmental Benefits: Investing in solar energy stocks contributes to reducing carbon emissions and combating climate change. This positive impact on the environment resonates with socially responsible investors, increasing the appeal of solar energy investments.
5. Global Market Potential: India’s position in the global renewable energy market is strengthening. As international demand for solar solutions grows, Indian companies can expand their reach, providing additional opportunities for investors in this dynamic sector.

Risks Of Investing In Solar Energy Stocks

The main risk of investing in solar energy stocks is the volatility of the market. Prices can fluctuate due to changing regulations, technological advancements and competition, which may impact the stability and profitability of these investments.

1. Regulatory Changes: Changes in government policies and regulations can significantly affect solar energy companies. Subsidies, tax incentives and tariffs can shift, leading to unpredictability in revenue streams and investment returns for investors.
2. Technological Advances: Rapid advancements in solar technology can create competition among companies. If a competitor introduces a more efficient product, it can reduce the market share and profitability of existing companies, impacting investor confidence and stock prices.
3. Market Demand: The demand for solar energy can be influenced by various factors, including economic conditions and consumer preferences. A decline in demand may lead to reduced sales and profits for solar companies, adversely affecting stock values.
4. Financial Stability: Many solar companies rely on external financing to fund operations and expansion. Financial instability, such as high debt levels or cash flow issues, can threaten a company’s ability to sustain growth and pay dividends to shareholders.
5. Global Competition: The solar energy market is global and companies face competition from international firms. Price wars and lower production costs in other countries can pressure profit margins, which may negatively impact the performance of domestic solar stocks.

Contribution of Solar Energy Stocks to Portfolio Diversification

Investing in solar energy stocks can significantly enhance portfolio diversification. By adding renewable energy assets, investors can reduce overall risk, as solar stocks often perform differently from traditional sectors. This variance helps cushion against market volatility, making portfolios more resilient.

Moreover, the growing global emphasis on sustainability and clean energy presents opportunities for long-term growth. As governments and businesses shift towards renewable sources, solar companies are well-positioned to benefit from this transition. Including these stocks can provide exposure to an evolving market with promising potential returns.

Who Should Invest in Solar Energy Stocks?

Investing in solar energy stocks can be appealing to a variety of investors looking to capitalize on the renewable energy trend. This sector not only offers growth potential but also aligns with environmentally conscious investment strategies.

1. Environmental Enthusiasts: Investors who prioritize sustainability can benefit from supporting clean energy solutions while contributing to a greener future.
2. Growth-Oriented Investors: Those seeking long-term capital appreciation may find solar stocks attractive, as the sector is poised for significant expansion amidst global energy transitions.
3. Diversifiers: Investors looking to reduce portfolio risk can include solar stocks to balance exposure across different industries, enhancing overall resilience.
4. Income Seekers: Some solar companies offer dividends, making them suitable for investors looking for regular income streams alongside growth opportunities.
5. Impact Investors: Individuals focused on social responsibility will appreciate the positive environmental impact of solar energy, aligning their financial goals with their values.

FAQs – Solar Energy Stocks In India

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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.