Top Green Energy Stocks in NSE India: Best Shares in Renewable Energy (2024)

Last Updated on Oct 30, 2024 by Aishika Banerjee

The world is slowly moving towards sustainable solutions for everything, even energy. Subsequently, the renewable energy sector has grown significantly over the past year, with over 15 Indian renewable energy stocks jumping more than 100%.

India, in particular, is at the forefront of this shift. The country has set ambitious goals to generate 50% of its electricity from non-fossil fuels by 2030 and achieve ‘net zero’ emissions by 2070. To reach this target, India prioritises clean energy initiatives with aggressive plans.

As a result, many companies are stepping up their efforts to contribute to a more sustainable planet. Several Indian companies are leading their way with green energy. In this article, let’s look at the top green energy stocks in India, the benefits and risks of investing in them, factors to consider before investing, and more.

List of Top 10 Green Energy Stocks in India

Note: The list of the best green energy stocks, with green energy stocks prices, is sorted by their 5-year Return on Investment (High to Low). The data is as of 29th October 2024 and the list is taken from Tickertape Stock Screener.

• Sector > Renewable energy
• 5Y Avg Return on Investment: Sorted from Highest to Lowest

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

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• Disclosures for Green Energy smallcase
• Disclosures for Electric Mobility smallcase

About the Top 10 Green Energy Stocks in India

Here is a brief overview of the top 10 green energy stocks in India on our green energy stocks list with price:

K.P. Energy Ltd

Founded in 2010, K.P. Energy Ltd is engaged in the development, construction, and operation of wind energy projects in India. The company plays a significant role in facilitating the nation’s shift to renewable energy by establishing wind farms and offering project management services across the energy sector.

As of 29th October 2024, K.P. Energy Ltd had a market capitalisation of Rs. 3,592.92 cr., with a green energy share price of Rs. 538.75. The company’s PE ratio stands at 61.26, and its 5-year average return on investment is 19.94%. K.P. Energy contributes to green energy by developing large-scale wind energy projects that promote clean electricity generation in India.

BF Utilities Ltd

Established in 2000, BF Utilities Ltd focuses on the generation of renewable energy, primarily through wind energy farms. It has been pivotal in harnessing wind power for electricity generation, contributing to India’s sustainable energy goals.

As of 29th October 2024, BF Utilities Ltd had a market capitalisation of Rs. 3,067.65 cr., and a stock price of Rs. 814.40. The company had a PE ratio of 304.03 and delivered a 5-year average return on investment of 14.26%. BF Utilities helps expand its green energy footprint through its wind power initiatives.

KPI Green Energy Ltd

Incorporated in 2008, KPI Green Energy Ltd operates as a solar energy producer, engaging in the development and sale of solar power to industries. It plays a crucial role in advancing solar energy infrastructure in India.

As of 29th October 2024, KPI Green Energy Ltd had a market capitalisation of Rs. 9,519.00 cr., with a stock price of Rs. 725.20. The company’s PE ratio was 58.88, and its 5-year average return on investment stood at 11.99%. KPI Green Energy contributes to India’s renewable sector through its solar energy solutions that align with national sustainability targets.

Premier Energies Ltd

Founded in 1995, Premier Energies Ltd is a leader in the renewable energy space, specialising in the manufacture of solar PV cells and modules. The company is a major player in supporting India’s transition to solar power by supplying critical solar components.

As of 29th October 2024, Premier Energies Ltd had a market capitalisation of Rs. 42,572.07 cr. and a stock price of Rs. 952.75. Its PE ratio stood at 184.02, while its 5-year average return on investment was 9.31%. The company significantly advances India’s solar infrastructure, supporting large-scale solar energy projects.

SJVN Ltd

SJVN Ltd, founded in 1988, is a public sector entity involved in hydroelectric power generation. In recent years, it has diversified into solar and wind energy projects, reinforcing India’s renewable energy initiatives.

As of 29th October 2024, SJVN Ltd had a market capitalisation of Rs. 43,699.32 cr., with a stock price of Rs. 111.20. The company’s PE ratio was 47.95, and its 5-year average return on investment was 8.25%. SJVN has contributed to the green energy sector by developing multiple solar and wind power projects.

Orient Green Power Company Ltd

Established in 2006, Orient Green Power Company Ltd focuses on generating electricity through renewable sources, such as wind and biomass energy. The company is key in helping India move towards cleaner, renewable energy alternatives.

As of 29th October 2024, Orient Green Power Company Ltd had a market capitalisation of Rs. 2,165.42 cr. and a stock price of Rs. 18.46. Its PE ratio was 56.39, with a 5-year average return on investment of 7.97%. The company has been instrumental in developing wind energy projects across India.

KKV Agro Powers Limited

KKV Agro Powers Limited was established in 2012 and primarily engages in renewable energy production through wind power. It plays a modest yet impactful role in supporting India’s renewable energy goals.

As of 29th October 2024, KKV Agro Powers Limited had a market capitalisation of Rs. 41.21 cr. and a stock price of Rs. 158.51. The company had a PE ratio of 158.51 and a 5-year average return on investment of 7.03%. KKV Agro Powers helps diversify India’s renewable energy mix with its wind power projects.

Adani Green Energy Ltd

Incorporated in 2015, Adani Green Energy Ltd is a major player in India’s renewable energy sector, focusing on solar and wind energy production. It has become one of the largest renewable energy companies globally.

As of 29th October 2024, Adani Green Energy Ltd had a market capitalisation of Rs. 259,005.15 cr., with a stock price of Rs. 1,635.10. The company’s PE ratio stood at 235.46, and its 5-year average return on investment was 6.64%. The company, with vast solar and wind power capacity, is critical to India’s renewable energy push.

WAA Solar Ltd

Founded in 2009, WAA Solar Ltd develops solar power projects in India. It contributes to India’s renewable energy targets by focusing on solar photovoltaic projects.

As of 29th October 2024, WAA Solar Ltd had a market capitalisation of Rs. 161.06 cr. and a stock price of Rs. 121.40. The company’s PE ratio was 24.29, and its 5-year average return on investment was 6.48%. WAA Solar contributes to green energy by implementing large-scale solar projects.

Energy Development Company Ltd

Established in 1995, Energy Development Company Ltd operates hydroelectric power plants and engages in renewable energy production. The company is active in India’s hydropower sector, providing sustainable energy solutions.

As of 29th October 2024, Energy Development Company Ltd had a market capitalisation of Rs. 106.35 cr. and a stock price of Rs. 22.39. Its PE ratio was -49.24, with a 5-year average return on investment of 6.34%. The company supports India’s green energy transition by focusing on hydroelectric power generation.

Green Energy vs Renewable Energy

Green energy is an umbrella term for all renewable energy sources that emit little to no pollution. Though ‘green energy’ and ‘renewable energy’ are often used interchangeably, one essential difference exists between them. While green energy sources are considered renewable, not all renewable energy sources are considered entirely green.

For example, solar power is a green and renewable energy; burning wood is renewable because you can grow more trees, but it is not green, as it pollutes the atmosphere. Green energy is a subset of renewable energy.

If you are wondering what the best renewable energy stocks in India are, click here.

What are Green Energy Stocks?

Green energy stocks represent companies involved in developing alternative technologies with renewable resources that emit little to no pollution. The most prevalent sources of green energy include sunlight, wind, and heat. Additionally, these energy sources can encompass low-impact hydroelectric sources and specific forms of biomass. Companies that aim to produce no carbon emissions using these resources while reducing fossil fuel dependence are classified as green energy companies in India. This sector forms a crucial part of the energy sector in India, promoting sustainability and eco-friendly energy solutions.

Types of Green Energy Stocks

Numerous green energy stocks in India are available for investors to explore. Below are some key categories of renewable energy stocks in India you can invest in from the bourses.

• Clean Energy Stocks: These green energy stocks focus on producing and delivering clean, renewable energy sources like solar, wind, hydro, geothermal, and bioenergy. These companies contribute significantly to clean energy India initiatives, making them attractive options for investors.
• Solar Energy Stocks: Green energy companies that specialise in producing energy through solar power are referred to as solar energy stocks. These companies are also involved in manufacturing solar panels and offering installation services for solar power projects on residential, commercial, and utility scales. As one step towards green and clean energy, solar companies play a vital role in the energy sector.
• Wind Energy Stocks: Renewable energy shares tied to the production or installation of wind turbines are known as wind energy stocks. These energy stocks have gained attention due to the increasing importance of renewable energy sources in the nifty energy stocks index.
• Hydro Energy Stocks: Companies that manage hydroelectric power stations leverage natural water flow to generate electricity, and the stocks of these energy companies are called hydro energy stocks. These contribute to the energy share list of renewable options in India’s energy sector.
• Geothermal Energy Stocks: This type of green energy stock encompasses companies involved in developing geothermal power plants. They use the Earth’s natural heat to generate electricity, contributing to the diversification of green energy companies in India.
• Bioenergy Stocks: Renewable energy companies capable of producing and supplying biofuels like ethanol and biodiesel, as well as operating biomass power plants using organic materials, are classified as bioenergy stocks in India. These companies are part of India’s expanding renewable energy companies list.

Benefits of Investing in Green Energy Stocks in 2024

Considering the government’s long-term plans, which include reaching a non-fossil energy capacity of 500 GW and meeting 50% of energy requirements from renewable energy by 2030, it is evident that the government is taking substantial steps towards a more sustainable and environmentally friendly energy sector. Here are some key reasons to invest in green energy stocks in 2024:

• Booming Sector: The government has introduced new initiatives to propel the green energy sector upward. As a result, many green energy stocks have fared relatively well, with several stocks recording double-digit growth.
• Eco-Friendly: Green energy is produced from sources such as solar, wind, and hydro, which are inherently eco-friendly. Investing in renewable energy companies promotes sustainability and supports cleaner energy production.
• Reducing Carbon Footprints: As India aims to reduce projected carbon emissions by one billion tonnes by 2030, adopting green energy is a pivotal step toward minimising carbon emissions. Green energy companies in India are instrumental in achieving these ambitious goals.
• Portfolio Diversification: Adding green energy stocks to your portfolio can minimise risk by diversifying across the growing energy sector in India.
• Incentivised by Government: With global governments, including India’s, rolling out incentives and subsidies, green energy stocks stand out as attractive investment avenues in the energy sector stocks category.

How to Invest in Green Energy Stocks India?

You can follow these steps to approach investments in green energy stock Indias:

1. Research the renewable energy stocks that interest you: Investors can examine the top 10 green energy stocks listed above and other renewable energy stocks in India.
2. Evaluate the stock price and analytics: Investors can review the green energy share list and share prices to understand the various market valuations. This will help you choose stocks from the list of energy stocks available in India.
3. Selection of stock types: Investors may choose from clean energy stocks, nifty energy stocks, or even green energy penny stocks India below 1 rupee, depending on their investment objectives and risk appetite. These energy stocks range from mid-cap to high-cap with different potential returns and risk profiles.
4. Analysing financial health and position: By analysing financial reports, market performance, and growth potential of chosen renewable energy companies in India, you can gain insight into the company’s stability and growth prospects. This evaluation ensures a better understanding of the green energy stock portfolio’s outlook.
5. Use advanced tools: Tickertape Stock Screener help create a personalised ‘Custom Universe’ for analysing renewable energy shares. With over 200 filters, you can easily tailor criteria and build a unique green energy portfolio.

Risks of Investing in Green Energy Stocks

While green energy stocks in India hold great potential, there are certain risks:

• Reliance on Thermal Energy: India heavily relies on thermal energy, particularly coal-based power, which accounted for 75% of energy generation in FY 2022-23. This makes the shift to green energy more challenging due to the affordability of fossil fuels.
• Intermittent Energy Supply: Renewable energy production, particularly from solar and wind, is dependent on natural elements, leading to intermittent power generation. This irregularity complicates reliable power distribution, impacting even the best energy stocks in the green energy sector.
• Fluctuating Energy Demand: Meeting peak energy demands, especially during evening hours, is difficult due to fluctuating demand patterns in India. This inconsistency creates challenges in maintaining a stable energy supply, which could affect the performance of top renewable energy stocks in India.
• Energy Storage Costs: Despite potential storage solutions like batteries, current cost inefficiencies hamper widespread adoption. Technological advancements are needed to reduce costs and make energy storage more sustainable. However, experts like AK Saxena of TERI believe that renewables could account for 42% of India’s energy supply by 2030, further driving investment in green energy companies.

However, there is optimism regarding the potential of batteries as sustainable storage options. Technological advancements and improved infrastructure could lead to cost-efficient and scalable battery storage solutions, facilitating India’s transition to a greener energy future. AK Saxena of TERI suggests that by 2030, renewables could account for 42% of India’s energy supply.

Union Budget Allocations for the Green Energy Sector in India for FY 2024-25

India’s Finance Minister, Nirmala Sitharaman, presented the interim Budget for 2024-25 on 1st February 2024, with a focus on key allocations and targets in the climate and energy sectors. While the Budget avoided major announcements, it outlined several important measures, particularly in the green energy sector, marking one step towards green and clean energy.

Energy, Climate, and Environment Sector

• The Ministry of New and Renewable Energy’s budget increased to Rs. 19,100 cr. in 2024-25, up from Rs. 7,848 cr. in the previous year.
• Funding for grid-based solar power nearly doubled to Rs. 10,000 cr., compared to Rs. 4,757 cr. in 2023-24.
• A rooftop solar programme aims to provide 300 units of free electricity per month to 10 million households.
• Wind power allocation saw a slight rise to Rs. 930 cr., with viability gap funding introduced for 1 gigawatt (GW) of offshore wind energy, boosting wind power stocks.
• Coal gasification and liquefaction projects are planned to reach 100 tonnes capacity by 2030.
• The National Green Hydrogen Mission’s funding increased sixfold to Rs. 600 cr. from the previous year’s Rs. 100 cr.
• The Ministry of Environment, Forests, and Climate Change received Rs. 3,265.53 cr., a modest increase from Rs. 3,079.4 cr. last year.
• The Ministry of Power’s allocation decreased slightly to Rs. 20,502 cr. for FY25 from Rs. 20,671 cr. in FY24.

Electric Vehicle Sector

• The Budget did not mention the FAME scheme, though Rs. 2,671 cr. was allocated to it, down from Rs. 4,807 cr. last year.
• The production-linked incentive (PLI) scheme for automobiles and auto components saw a significant increase to Rs. 3,500 cr., a 624% rise from the previous year’s allocation.
• The focus appears to be on supply-side measures, with reduced customs duties on critical minerals for EVs. However, concerns remain about the impact of reduced EV subsidies on two- and three-wheeler sales.

Petroleum and Natural Gas Sector

• Rs. 498 cr. was allocated for the development of pipeline infrastructure for compressed biogas.
• Rs. 150 cr. was designated to enhance biomass collection, improving feedstock availability for biofuels.
• New allocations of Rs. 332 cr. and Rs. 388 cr. for Mission Anveshan and extended continental shelf appraisal signal a focus on expanding oil and gas reserves.

This Budget indicates a shift in priorities for India’s energy transition, emphasising energy storage, nuclear energy, and waste-based biofuels.

Factors to Consider Before Investing in Green Energy Stocks

• Government Policies: With government policies subject to change (either increase or decrease of investment in sectors), analyse the current government policies around green energy companies.
• Innovation: Identify companies looking to scale their production by integrating new-age tools or technology to produce green energy.
• Competition: Identify companies with a competitive edge in the green energy sector and carefully analyse them before investing.
• Risk: You can identify risks associated with the top renewable energy companies in India by checking the Red Flags on the Tickertape Scorecard.

Conclusion

With the world slowly shifting towards sustainable solutions, green energy is capturing everyone’s attention. Like always, a shift in consumer demand brings up new opportunities, old companies shift to a new way, and new companies emerge; the same can be expected for the energy sector. Investors must conduct their own research and remember to consult a financial expert before making any investments. You can also research the Tickertape stocks/mutual funds screener. With over 200 filters, custom filters, pre-built screens,  custom universes, a linking watchlist, export data, and more features, Tickertape Stock Screener can be your go-to destination for stock analysis and research!

Frequently Asked Questions on Green Energy Stocks

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Harshit Singh

Content Strategist at Tickertape

Hey there, I’m Harshit Singh Mahey! With eight years of experience as a Content Strategist, I’ve had the pleasure of working with a Fortune 100 company and building three successful startups from the ground up.

As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.

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