Last Updated on Jun 5, 2024 by Anjali Chourasiya
India’s solar energy sector is booming, reflecting the nation’s ambitious renewable energy targets. By 2030, India aims to achieve 500 GW of renewable energy capacity, with solar power playing a critical role. As the sector continues to grow, solar energy stocks in India present exciting opportunities for investors looking to capitalise on the green energy boom. However, understanding the dynamics of the solar power sector is essential in order to capitalise on this green revolution. Hence, in the article, let’s explore factors to consider before investing in solar energy companies, benefits, risks, how to invest, and a latest list of the best solar stocks in India for 2024.
Table of Contents
What are Solar Energy Companies?
Solar energy companies are involved in harnessing the power of the sun to generate electricity. These companies may manufacture solar panels, provide solar power solutions, or engage in the installation and maintenance of solar power systems. In India, several companies are leading the charge in the solar sector, contributing to the nation’s renewable energy goals.
Click to read about Renewable Energy Stocks in India 2024
Top 10 Solar Energy Stocks in India
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 5Y Avg Return on Investment (%) | 1Y Return (%) |
| K.P. Energy Ltd | Renewable Energy | 2,784.31 | 407.90 | 47.74 | 17.23 | 489.88 |
| BF Utilities Ltd | Renewable Energy | 3,583.51 | 774.75 | 355.15 | 14.26 | 111.74 |
| Zodiac Energy Ltd | Renewable Energy Equipment & Services | 1,001.00 | 637.00 | 91.25 | 12.38 | 456.09 |
| KPI Green Energy Ltd | Renewable Energy | 11,231.25 | 1,755.45 | 69.47 | 11.18 | 412.29 |
| SJVN Ltd | Renewable Energy | 56,923.08 | 123.20 | 62.45 | 9.84 | 244.62 |
| KKV Agro Powers Limited | Renewable Energy | 70.29 | 1,240.00 | 260.34 | 8.78 | 31.91 |
| Orient Green Power Company Ltd | Renewable Energy | 2,064.42 | 19.60 | 56.51 | 7.84 | 136.52 |
| WAA Solar Ltd | Renewable Energy | 264.87 | 178.25 | 39.95 | 7.03 | 253.74 |
| Energy Development Company Ltd | Renewable Energy | 109.25 | 21.25 | -50.58 | 6.80 | 30.77 |
| Adani Green Energy Ltd | Renewable Energy | 305,187.62 | 1,646.00 | 277.44 | 6.64 | 66.62 |
Note: The data of best solar energy stocks in India is as of 4th June 2024. The stocks are sorted according to their 5-yr Average Return on Investment.
- Sector > Renewable Energy, Renewable Energy Equipment & Services
- 5-Yr Average Return on Investment – Sorted from high to low
🚀 Pro Tip: Explore Tickertape’s Financial Statements for detailed company financial reports to make informed investment decisions.
Confused About Which Solar Stocks to Choose? Consider Exploring smallcases!
Let’s learn about what a smallcase is first.
smallcases are modern investment products that help investors easily build a low-cost, long-term and diversified portfolio. A smallcase is a basket of stocks/ETFs that collectively represent a theme, idea or strategy. Investors looking to align their investments sector-wise can consider smallcases. Every smallcase is created and managed by SEBI-registered managers.
Some of the popular smallcases amongst new investors have been included below.
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 Rising Responsibly: Green ESG
Overview of the Top Solar Companies in India Listed in Stock Market
K.P. Energy Ltd
Founded in 2010, K.P. Energy Ltd is a significant player in the renewable energy sector in India, primarily focusing on wind power projects. The company has been actively contributing to India’s sustainable energy goals by developing and operating several wind energy projects. In February 2024, K.P. Energy’s board approved the allotment of 4.44 cr. bonus shares in a 2:1 ratio, increasing the paid-up equity share capital to Rs. 33.35 cr. The company also secured a contract for a 9 MW wind power project in Gujarat, which contributed to a significant rise in their stock price.
As of 5th June 2024, K.P. Energy Ltd had a market capitalisation of Rs. 2,784.31 cr. and a stock price of Rs. 407.9. The company’s 5-year average return on investment (ROI) stands at 17.23%, with an impressive 1-year return of 489.88%. The 5-year average net profit margin is 7.77%, and the return on equity (ROE) is 37.24%. Learn more about the stock’s performance here.
BF Utilities Ltd
BF Utilities Ltd, part of the Kalyani Group, was incorporated in 2000. The company is involved in infrastructure development and renewable energy projects, with a strong focus on wind energy. Recently, BF Utilities commissioned a new wind farm in Maharashtra, adding 100 MW to its capacity. The company is also exploring opportunities in solar energy to diversify its renewable energy assets.
As of 5th June 2024, BF Utilities Ltd had a market capitalisation of Rs. 3,583.51 cr. and a stock price of Rs. 774.75. The 5-year average ROI is 14.26%, and the stock’s 1-year return is 111.74%. The 5-year average net profit margin is 11.35%, with a ROE of 42.55%. Explore more about the stock’s performance here.
Zodiac Energy Ltd
Zodiac Energy Ltd was established in 1992 and has become a key player in the solar energy sector, offering a wide range of services from EPC (Engineering, Procurement, and Construction) to O&M (Operations and Maintenance). The company signed a significant contract to supply solar power solutions to a leading industrial conglomerate. Zodiac Energy Ltd is expanding its presence in the Middle East markets with new projects.
As of 5th June 2024, Zodiac Energy Ltd had a market capitalisation of Rs. 1,001 cr. and a stock price of Rs. 637. The 5-year average ROI is 12.38%, with a 1-year return of 456.09%. The 5-year average net profit margin is 3.97%, and the ROE is 9.28%. Check out the stock’s performance in comparison to its peers here.
KPI Green Energy Ltd
KPI Green Energy Ltd, incorporated in 2008, specialises in the development and operation of solar power projects. The company operates various solar plants under its ‘Solarism’ brand. KPI Green Energy is set to launch a 200 MW solar power project in Gujarat. The company is investing in advanced solar technology to enhance efficiency and reduce costs.
As of 5th June 2024, KPI Green Energy Ltd had a market capitalisation of Rs. 11,231.25 cr. and a stock price of Rs. 1,755.45. The 5-year average ROI is 11.18%, with a 1-year return of 412.29%. The 5-year average net profit margin is 16.65%, and the ROE is 53.27%. Learn more about the stock’s events here.
SJVN Ltd
SJVN Ltd, established in 1988, is a major public sector enterprise in India focusing on hydroelectric power generation. The company also has interests in wind and solar power projects. SJVN announced the commissioning of a new hydroelectric project in Himachal Pradesh. The company is expanding its renewable energy portfolio with new solar and wind projects.
As of 5th June 2024, SJVN Ltd had a market capitalisation of Rs. 56,923.08 cr. and a stock price of Rs. 123.2. The 5-year average ROI is 9.84%, with a 1-year return of 244.62%. The 5-year average net profit margin is 41.54%, and the ROE is 10.06%. Check out the stock’s performance in comparison to its peers here.
KKV Agro Powers Limited
KKV Agro Powers Limited, founded in 2013, focuses on renewable energy solutions, particularly biomass and solar energy. The company aims to contribute to sustainable energy development in India. KKV Agro Powers recently upgraded its biomass plant to increase efficiency and output. The company is also exploring partnerships for expanding its solar energy projects.
As of 5th June 2024, KKV Agro Powers Limited had a market capitalisation of Rs. 70.29 cr. and a stock price of Rs. 1,240. The 5-year average ROI is 8.78%, with a 1-year return of 31.91%. The 5-year average net profit margin is 1.57%, and the ROE is 5.63%. Explore more about the stock’s financial performance here.
Orient Green Power Company Ltd
Orient Green Power Company Ltd, incorporated in 2006, is one of the largest independent operators and developers of renewable energy power plants in India, focusing on biomass and wind energy. The company has commissioned a new wind power project in Tamil Nadu, adding 50 MW to its capacity. They are also investing in upgrading its biomass plants to enhance efficiency.
As of 5th June 2024, Orient Green Power Company Ltd had a market capitalisation of Rs. 2,064.42 cr. and a stock price of Rs. 19.6. The 5-year average ROI is 7.84%, with a 1-year return of 136.52%. The 5-year average net profit margin is 3.60%, and the ROE is 6.55%. Check out the stock’s performance in comparison to its peers here.
WAA Solar Ltd
Founded in 2009, WAA Solar Ltd specialises in the development and operation of solar power projects. The company focuses on both utility-scale and rooftop solar installations. WAA Solar announced a new partnership with a major real estate developer for a rooftop solar project. The company is exploring opportunities to expand its solar operations in Southeast Asia.
As of 5th June 2024, WAA Solar Ltd had a market capitalisation of Rs. 264.87 cr. and a stock price of Rs. 178.25. The 5-year average ROI is 7.03%, with a 1-year return of 253.74%. The 5-year average net profit margin is 16.87%, and the ROE is 5.04%. Check out the stock’s performance in comparison to its peers here.
Energy Development Company Ltd
Energy Development Company Ltd, established in 1995, is involved in the generation and distribution of renewable energy, focusing on small hydro projects. The company is working on upgrading its hydroelectric plants to improve energy output and is in talks with international partners for potential collaborations.
As of 5th June 2024, Energy Development Company Ltd had a market capitalisation of Rs. 109.25 cr. and a stock price of Rs. 21.25. The 5-year average ROI is 6.80%, with a 1-year return of 30.77%. The 5-year average net profit margin is 0.08%, and the ROE is 3.53%. Learn more about the stock’s events here.
Adani Green Energy Ltd
Adani Green Energy Ltd, a part of the Adani Group, was founded in 2015 and has quickly become one of the largest renewable energy companies in India. The company is involved in solar and wind power projects and is known for its significant contributions to the renewable energy sector.
As of 5th June 2024, Adani Green Energy Ltd had a market capitalisation of Rs. 3,05,187.62 cr. and a stock price of Rs. 1,646. The company’s 5-year average return on investment (ROI) stands at 6.64%, with a 1-year return of 66.62%. The 5-year average net profit margin is 7.02%, and the return on equity (ROE) is 8.87%.
Adani Green Energy announced a new joint venture with a global energy giant to develop 1 GW of renewable energy projects in India. The company is set to commission one of the world’s largest solar farms in Rajasthan. Adani Green Energy has been actively investing in technology to enhance efficiency and reduce the cost of solar and wind energy production. Learn more about the stock’s events here.
Factors to Consider Before Investing in Solar Energy Companies
Investing in solar energy stocks requires careful consideration of several factors:
- Market Position and Financial Health: It’s important to evaluate a company’s market standing and financial stability. Companies with strong financials and a solid market presence are more likely to withstand market fluctuations.
- Technological Capabilities: Innovations and technological advancements can set companies apart. Investors should look for companies that are leaders in solar technology.
- Government Policies and Incentives: Government support can significantly impact the growth of solar companies. Policies and incentives favouring solar energy can provide a conducive environment for these companies to thrive.
- Global and Domestic Demand: The demand for solar energy, both globally and domestically, can influence the performance of solar stocks. Companies positioned to meet this demand are likely to perform better.
Benefits of Investing in Solar Stocks
Investing in solar energy stocks can offer several benefits:
- Growth Potential: As the world moves towards renewable energy, the solar sector is expected to grow significantly.
- Government Support: Government policies and incentives can provide a boost to solar companies, enhancing their growth prospects.
- Sustainability: Solar energy is a sustainable and environmentally friendly option, aligning with global efforts to combat climate change.
Risks of Investing in Solar Stocks
Despite the benefits, investing in solar stocks comes with its own set of risks:
- Market Volatility: The solar sector can be subject to significant market volatility, influenced by various factors including policy changes and technological advancements.
- Technological Risks: Rapid technological changes can render existing technologies obsolete, impacting companies that fail to innovate.
- Regulatory Changes: Changes in government policies and regulations can affect the solar sector, posing risks to investors.
Government Policies and Incentives
India’s government has been proactive in promoting solar energy through various policies and incentives. The 2024 interim budget announced significant measures to support the renewable energy sector. For example, the government has allocated INR 8,500 crores to the grid sector, a significant increase from the previous year. One of the key initiatives is the rooftop solar plan, which aims to provide free electricity up to 300 kWh per month to one crore households. Additionally, the Production Linked Incentive (PLI) scheme continues to boost domestic manufacturing of high-efficiency solar PV modules.
Technological Advancements
The solar energy sector is witnessing rapid technological advancements. Innovations in solar panel efficiency and storage solutions are driving the sector forward. Recent developments in perovskite solar cells promise higher efficiency and lower costs compared to traditional silicon-based solar cells. Additionally, advancements in photovoltaic technology and energy storage systems, such as lithium-ion batteries, are enhancing the reliability and efficiency of solar power.
How to Invest in Solar Stocks via Tickertape?
A diversified investment approach in the solar sector can be a wise decision. Investing in both established companies and emerging startups may help balance the risk-reward ratio. Staying vigilant about market trends and government policies can also be beneficial, as this allows investors to make timely decisions based on a thorough assessment of such information. Consulting a financial advisor before making any investment decision is always a prudent step.
To list the best stocks in the solar sector on Tickertape, follow the steps below:
Step 1: Go to the Stock Screener
Visit the Tickertape and navigate to the Stock Screener section.
Step 2: Click on ‘+ Create’ in ‘Stock Universe’
In the Stock Screener, click on the ‘+ Create’ button under the ‘Stock Universe’ section.
Step 3: Add Relevant Solar Stocks
Add all the stocks mentioned in your research articles and others related to the solar sector.
Step 4: Apply Filters
Utilise over 200 available filters to sort the stocks based on your preferences, such as profitability, performance, valuation, and growth.
Step 5: Invest Directly Through Tickertape
Once you have shortlisted the solar stocks, you can invest directly through the Tickertape. It allows seamless integration with your trading account, making it easy to buy and sell stocks directly from the platform, saving your time and effort. Connect now!
Investing in solar stocks can be a strategic move to tap into the growing renewable energy sector. A diversified portfolio, combined with regular monitoring and staying informed about industry trends, can help manage risks and enhance potential returns.
Challenges of the Solar Energy Sector
The solar energy sector faces several challenges:
- High Initial Costs: The initial capital investment required for solar projects can be substantial.
- Weather Dependence: Solar energy generation is dependent on weather and geographical conditions, which can be unpredictable.
- Regulatory Challenges: Navigating the regulatory landscape can be complex and challenging for solar companies.
Recent Developments in the Sector
The solar sector in India has seen significant developments recently. Major projects and collaborations have been announced, enhancing the country’s solar capacity. For example, Adani Green Energy signed agreements to develop 11,000 MW of solar power projects by 2025, which is a substantial boost to India’s renewable energy goals. Similarly, Tata Power Solar secured a contract to build a 100 MW solar project in Rajasthan, showcasing the growing investment and expansion in the solar sector.
Conclusion
It is estimated that with the increase in climate concerns, the demand for renewable energy resources will also rise. As a result, the solar energy sector stocks in India have recorded triple-digit growth in the past year which corresponds to the government initiative towards green energy. Though the investment in the solar energy sector seems profitable, therefore it is important to check their financials and the scope of growth in the company and the sector before investing.
Whether it be for fundamental analysis, or simply for gauging at the market movement, utilising the potential of Tickertape Stock Screener can help you identify the best solar energy stocks in Nifty. With over 200+ filters, you can reflect on the stock’s past performance while evaluating the fundamentals, it can help you make a sound investment decision.
FAQs
1. What are solar energy stocks in India?
As the name suggests, solar energy stocks are nothing but companies, which directly or indirectly (through their products) focus on producing energy from sunlight.
2. How to find stocks in the renewable energy sector?
To save the environment from pollution and other man-made destructions, companies started focusing on the renewable energy sector. You can find the list of stocks in the renewable energy sector on Tickertape.
– Login to Tickertape
– Visit the Stock Screener
– Search for ‘Renewable Energy’ and ‘Renewable Energy Equipment & Services’ under the ‘Sector’.
3. What are the top 10 solar energy stocks in India?
Based on 5-yr return on investment, the top solar stocks in India are:
– K.P. Energy Ltd
– BF Utilities Ltd
– Zodiac Energy Ltd
– KPI Green Energy Ltd
– SJVN Ltd
– KKV Agro Powers Limited
– Orient Green Power Company Ltd
– WAA Solar Ltd
– Energy Development Company Ltd
– Adani Green Energy Ltd
Please note the list is sorted using the Tickertape Stock Screener.
4. How can I identify the best solar stocks in India?
Identifying the best solar stocks involves analysing the company’s market position, financial health, technological capabilities, and government support. However, before investing, it always worthwhile to consult a financial advisor.
5. What government policies support solar energy investments in India?
Government policies such as the National Solar Mission and various subsidies and tax benefits support solar energy investments in India.
6. What are the risks associated with investing in solar sector stocks?
Risks include market volatility, technological obsolescence, and regulatory changes. Investors should stay informed about these factors.
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
