Best Renewable Energy Stocks in India (2024)

Last Updated on Oct 30, 2024 by Vanessa Sequeira

Increasing environmental concerns, government support, and massive investments in the renewable energy sector in India are making green energy stocks an attractive avenue for investors interested in energy transition stocks in India. Top conglomerates in the green energy space are running at it in full swing, expanding assets and capacities to help achieve India’s 2030 target of reaching 500 GW installed capacity in renewable energy-related stocks in India. In the Interim Budget 2024-2025, the government allocated Rs. 10,000 cr. for a grid-based solar power scheme, an increase from Rs. 4,757 cr. in 2023-24. Wind power funding was slightly raised to Rs. 930 cr. in 2024-25 from Rs. 916 cr. the previous year. In this article, we discuss the overview of the country’s best renewable energy companies in India, challenges, prospects, and things to consider while investing in green energy shares list for energy stocks.

Best Renewable Energy Stocks in India

Note: The data is as of 28th October 2024. The list of best renewable energy stocks in India was derived using Tickertape’s Stock Screener using the following filters:

• Category: Renewable Energy and Renewable Energy Equipment & Services
• 1Y Return: Sorted from highest to lowest

If you are wondering about what are the top green energy companies in India, read the article on ‘Best Green Energy Stocks in India’.

🚀 Pro Tip: Select the filter “Dividend Yield” to identify top dividend yielding stocks.

Looking to Invest in Renewable Energy Stocks Selected by SEBI-Registered Analyst?

smallcases are portfolios of thematic stocks created and managed by SEBI-registered analysts. A smallcase allows an investor to diversify its portfolio among the sector. Among 500+ smallcases, the best-performing renewable energy smallcases are as follows –

Green Energy smallcase by Niveshaay

Electric Mobility smallcase by Windmill Capital

Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Disclosure for Green Energy smallcase

Disclosure for Electric Mobility smallcase

Overview of the Top Renewable Energy Stocks in India

1. Ujaas Energy Ltd

Ujaas Energy Ltd is a significant player in India’s renewable energy sector, focusing on the manufacturing and installation of solar power systems. Over the last five years, the company’s net income has grown at a yearly rate of 34.38%, substantially outpacing the industry average of 17.52%. Ujaas Energy has maintained a debt-to-equity ratio of 99.36% over this period, which is lower than the industry average of 120.86%, indicating more conservative financial management.

2. Websol Energy System Ltd

Websol Energy System Ltd specialises in the production of photovoltaic cells and modules. The company has demonstrated strong financial metrics, with a cash flow margin of 130.28%. Its current market capitalisation stands at ₹5,242 crore, reflecting its steady growth in a competitive green energy stocks list. For investors seeking energy stocks to buy, Websol’s metrics offer a strong choice.

3. Zodiac Energy Ltd

Zodiac Energy Ltd is known for providing comprehensive solar energy solutions, from designing to commissioning. Over the last five years, the company’s revenue has grown at a yearly rate of 28.36%, compared to the industry’s negative growth of -6.33%. Additionally, Zodiac Energy has maintained a current ratio of 188.91%, significantly higher than the industry average of 116.45%, indicating its strong liquidity position. This company stands out on any green energy share list as a leader in renewable energy companies in India.

4. K.P. Energy Ltd

K.P. Energy Ltd focuses on providing turnkey solutions in the wind energy sector. The company has achieved a five-year revenue growth rate of 24.81%, more than doubling the industry average of 11.03%. Over the same period, its debt-to-equity ratio has been maintained at 43.24%, well below the industry average of 120.86%, indicating a relatively low reliance on debt. This company is prominent in energy-related stocks in India and is considered among the best renewable energy companies in India.

5. SunGarner Energies Ltd

SunGarner Energies Ltd is involved in solar energy projects and product manufacturing. The company maintains a net profit margin of 5.99%, with a market capitalisation of ₹134 crore. This demonstrates a moderate profitability level, aligning with its growth objectives in a competitive green energy stocks price market and positioning it among energy transition stocks in India.

6. KPI Green Energy Ltd

KPI Green Energy Ltd has rapidly expanded its market presence through solar power generation. Over the last five years, the company’s revenue has grown at an impressive yearly rate of 88.05%, vastly outpacing the industry average of 11.03%. During this period, its market share increased from 0.2% to 2.6%, indicating its growing dominance in the sector. KPI Green Energy Ltd is an important part of the green energy stocks list for investors seeking energy stocks to buy in the renewable energy sector in India.

7. SRM Energy Ltd

SRM Energy Ltd, although smaller in size, has demonstrated remarkable growth, with a five-year compound annual growth rate (CAGR) of 44.83%. The company’s current market capitalisation stands at ₹16 crore, reflecting its potential for expansion in the renewable energy market.

8. Surana Solar Ltd

Surana Solar Ltd is a key player in the solar energy industry, focusing on the manufacturing of photovoltaic products. The company has achieved a five-year CAGR of 57.35%, supported by a market capitalisation of ₹270 crore, indicating strong growth prospects. It’s considered one of the best renewable energy companies in India and holds a prime spot in energy-related stocks in India.

9. Alpex Solar Ltd

Alpex Solar Ltd has a robust presence in the renewable energy sector, with a market capitalisation of ₹1,944 crore. The company’s return on equity (ROE) stands at 30.82%, reflecting its efficient utilisation of shareholder funds. Additionally, it maintains a net profit margin of 6.35%, showcasing solid profitability. Alpex Solar Ltd holds a prime place on the green energy stocks list as a reliable investment.

10. Suzlon Energy Ltd

Suzlon Energy Ltd, a leading name in wind energy, has faced challenges but continues to grow steadily. Over the last five years, the company’s revenue has grown at a yearly rate of 5.03%, in contrast to the industry’s negative growth of -6.33%. Suzlon has managed a debt-to-equity ratio of -120.32% during this period, which compares favorably to the industry average of -116.72%, indicating its efforts to manage liabilities effectively. Investors monitoring green energy stocks price and the energy transition stocks in India will find Suzlon among the significant players.

What are Renewable Energy Shares in India?

Renewable energy sector stocks are shares of companies involved in the production, technology, or services related to renewable energy sources like solar, wind, and hydroelectric power. These stocks represent investment in the transition to cleaner, sustainable energy alternatives to fossil fuels.

To learn about the difference between renewable and green energy, click here.

Top 10 Renewable Energy Penny Stocks in India – Based on 5Y CAGR

Many investors in India are increasingly looking to invest in the top 10 renewable energy penny stocks, especially given the long-term growth potential. The list of penny stocks in renewable energy presents an opportunity, as these stocks offer entry points into a rapidly expanding sector.

Note: The data is as of 28th October 2024. The list of best renewable energy shares in India was derived using Tickertape’s Stock Screener using the following filters:

• Category: Renewable Energy and Renewable Energy Equipment & Services
• Close Price: Sort from lowest to highest
• 5Y CAGR: <5%
• Debt-to-equity ratio: 0-3%

Types of Renewable Energy Sector Stocks in India

1. Clean energy stocks: Shares of any company related to renewable energy in India can be a clean energy stock. This includes alternative transportation technologies.
2. Solar and wind energy stocks: As the name suggests, these are more focused and associated with solar and wind energy.
3. Hydroelectricity stocks: These are companies that use flowing water to generate energy. Currently, hydroelectricity is one of the most popular resources used and is only expected to rise over time.

Overview of the Renewable Energy Sector in India

India’s renewable energy sector is experiencing rapid growth, making it a key player in the global clean energy transition. The country’s renewable electricity capacity is expanding faster than in any other major economy, with projections to double by 2026. India has already surpassed its COP21 commitment by achieving over 40% of its power capacity from non-fossil sources. It aims for 500 gigawatts of renewable energy capacity by 2030, supporting its goals to reduce emissions intensity by 45% and achieve net-zero emissions by 2070. This growth is driven by significant increases in solar and wind capacity, alongside ambitious plans for green hydrogen production.

Benefits of Investing in Renewable Energy Stocks

Investing in renewable energy stocks in India offers several compelling reasons:

• Booming sector: Government initiatives are propelling the renewable energy sector, leading to significant growth and investment opportunities in wind power stocks, green energy, and listed renewable energy companies.

• Government incentives: Incentives and subsidies from global governments make the best green energy penny stocks in India attractive investment avenues.

• Eco-friendly: Investments in renewable energy contribute to a sustainable and environmentally friendly future, aligning with India’s goal to become a leader in listed renewable energy companies.

• Reducing carbon footprints: Investing in renewable energy stocks and even wind power stocks aligns with India’s goal to reduce carbon emissions by one billion tonnes by 2030, supporting global climate change efforts.

• Portfolio diversification: Renewable energy shares in India can diversify investment portfolios, potentially reducing risk, especially with investments in the top 10 green energy stocks in India.

• Rapid growth: India’s renewable energy sector is witnessing the highest Y-o-Y growth, with significant increases in solar and wind capacity, with wind energy stocks in India playing a key role in this progress.

• Increasing demand: With the country’s power requirement projected to grow significantly, renewable energy companies in India, including those on the wind energy share list, are poised to meet a substantial portion of this demand.

These factors make renewable energy shares in India, even renewable energy penny stocks, an attractive option for investors looking to capitalise on the country’s shift towards sustainable energy solutions. 

How to Identify the Best Renewable Energy Sector Stocks?

If you are looking to invest in renewable energy stocks in India, it may be important to consider several key factors to identify the best options.

1. Company’s Market Position and Growth: You might start by looking at the company’s market position and potential for growth. Companies with a strong presence in renewable energy, such as solar or wind energy stocks in India, and are expanding their capacity could be promising. Focusing on top renewable energy companies in India may help you find those with a proven track record in the sector.
2. Financial Stability: When examining the renewable energy stocks list, it may be useful to assess the financial health of these companies. Check the Indian renewable energy shares for low debt levels, positive cash flow, and consistent profitability, which can provide insights into how well a company is positioned to handle market fluctuations. For instance, renewable energy penny stocks in India might carry higher risks, so looking into their financials is crucial when evaluating the best green energy penny stocks in India.
3. Government Support and Policies: Understanding government policies and support for renewable energy is beneficial. Companies benefiting from subsidies or incentives, like the top 10 green energy stocks in India, may have an advantage. Tracking the performance of renewable energy in India and upcoming projects can offer clues about which renewable energy shares in India might perform well.
4. Industry Trends and Technological Advances: Check out the wind energy share list and keep an eye on trends in the renewable energy industry in India. Technological innovations might reveal which companies are at the forefront. Companies investing in new technologies or expanding into emerging areas like offshore wind or energy storage may offer better growth prospects among green energy stocks. When evaluating renewable energy shares in India, a mix of market position, financial health, government policy, and industry trends can help you find the most promising investments in this growing sector.

How to Invest in the Renewable Energy Sector?

There are a number of ways by which you can invest in renewable energy—stocks, mutual funds, and ETFs. To discover renewable energy stocks in India, use Tickertape’s Stock Screener and select the ‘renewable energy’ as the sector. Additionally, you can use other parameters that matter to you; they can be net income, total debt, and more.

Once you get a list of clean energy stocks in India, make sure to evaluate them individually using Stock Pages. Look at their finances, compare with peers, evaluate their holding patterns and more. Doing this will give you a well-rounded understanding of the stock’s past performance and prospects, which will help you decide whether to invest in it or not.

If you want to invest in mutual funds and ETFs, find options that invest in the green energy sector and evaluate them thoroughly. Pick the best one based on your research and investment goal.

Risks Associated with Renewable Energy Sector in India

The challenges surrounding renewable energy in India include:

• Cost burden of legacy infrastructure: High transmission and distribution losses prevent decisive investments in renewables, keeping the energy sector reliant on coal.
• Financing the transition: The renewable energy industry in India has an ambitious plan to add significant renewable capacity, which requires trillions of dollars, necessitating access to low-cost financing.
• Grid reliability: The massive increase in infirm power sources challenges grid stability, especially as India lacks a transition fuel like natural gas.
• Intermittency and variability: Renewable sources like solar and wind are not constant, leading to challenges in maintaining a stable energy supply.
• Location-specific potential: Optimal locations for renewable energy projects are often far from consumers or the grid, complicating transmission.
• Higher costs compared to fossil fuels: Despite falling prices, renewables can still be more expensive than traditional energy sources, impacting economic feasibility.
• Weak and unstable grid: India’s grid infrastructure struggles to handle the variability and intermittency of renewable energy, requiring significant upgrades.
• Lack of incentives for peaker plants: Without incentives for plants that can quickly ramp up or down, integrating a high percentage of renewables into the grid is challenging.

These challenges underscore the complexity of transitioning to renewable energy in India, necessitating innovative solutions and substantial investment.

Things to Consider Before Investing in the Best Renewable Energy Shares in India

1. Due to recent hype in the renewable energy sector, some stocks may be overvalued. So ensure to do a valuation analysis before buying. You can use valuation ratios and other tools explained in What Is the Intrinsic Value of a Stock and How To Calculate It?
2. Assess the debt position of these companies. Most of them, including Adani, SJVN, and NHPC, have considerable debt. Being funded by debt is not all that bad. However, a company should have ample cash flow to repay the debt and be on the greener side.
3. Since the renewable energy sector is relatively new, many companies may not be profitable, while some may have just started reporting profits. So check out the top 10 renewable energy companies in India, making sure that the company is profitable can give you some respite. If profit is nil or low, assess their future plans and prospects. Can they become profitable by improving their operations, introducing new technology, and offering a new product line? If yes, are they capable of doing it? What are the management views, and what is their attitude? Gauge other supporting metrics and only then make a decision.

When you dig deeper into these stocks using Tickertape’s Stock Pages, you will notice trends in financial performance over the years. Be sure to check this data for the top 20 renewable energy stocks to buy and collate news about the company’s operations before making an investment decision.

Who Can Invest in the Best Renewable Stocks in India?

1. Long-Term Investors: If you are focused on sustainable growth and willing to hold investments for years, renewable energy stocks from top companies in India may suit your strategy.
2. Eco-Friendly Investors: If you care about green investing, green energy stocks can align with both your ethical values and financial goals, especially with rising government support. Look for clean energy company stocks that match these goals.
3. Diversifiers: If you want to spread your risk, adding renewable energy stocks to your portfolio could offer growth opportunities alongside stability.
4. Tech Savvy Investors: If you are excited by innovation, consider companies advancing in solar, wind, or storage technology, as they might lead the future of energy in India. Researching renewable energy stocks to buy that are involved in cutting-edge clean energy technology can enhance your investment strategy.

To Wrap It Up…

Investment in renewable energy shares in India could be a particularly thrilling opportunity with the increasing demand for clean energy in India. The top renewable energy companies in India represent an exciting opportunity for long-term investors or risk-tolerant traders to further diversify their portfolios. Based on market position, financial status, government policies, and industry trends, you are able to pin down top green energy stocks in India that best suit your investment goals. As the renewable energy industry in India grows, these stocks will be great in terms of prospective growth and sustainability, adding value to your portfolio.

Frequently Asked Questions About Renewable 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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