Best Green and Renewable Energy Stocks in India (2024)

The green energy sector is rapidly expanding worldwide, especially in India. India aims to generate half its electricity from non-fossil fuel sources by 2030 and achieve ‘net zero’ emissions by 2070. The Union Budget 2024-25 made certain provisions welcoming sustainable development. Green Growth was based on the Prime Minister’s vision of LiFE or Life for Environment. This goal has spurred significant growth in the Indian renewable energy market, with over 15 15 Indian renewable energy stocks surging over 100% in the past year alone. Many green energy companies in India are embracing clean energy initiatives to support these objectives. In this article, we’ll explore leading green energy stocks in India, their benefits and risks, key considerations for investors, and more.

Best Green Energy Stocks in India (2024)

Here is a green energy sector stocks list featuring the top renewable energy stocks in India, based on the 5Y average return on Investment (ROI):

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in this list of green energy stocks in India is subject to real-time updates.

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Top 10 Green Energy Stocks (India): An Overview

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

Adani Green Energy Ltd

Adani Green Energy Limited (AGEL) is a prominent green energy company in India based in Ahmedabad and part of the Adani Group. Founded by Gautam Adani in 2015, AGEL operates the Kamuthi Solar Power Project, one of the world’s largest solar photovoltaic plants. As of 20th September 2024, the company had a market capitalisation of Rs. 310,937.66 cr., and its share price closed at Rs. 1962.95. Over the last 5 years, the company’s revenue has grown at a yearly rate of 38.22%, higher than the industry average of 11.03%, and market share increased from 9.82% to 27.09%. AGEL is one of the top solar power companies in India on the green energy stocks list with price.

KP Energy Ltd

KP Energy is a key balance of plant (BoP) solutions provider for wind energy projects in Gujarat, India. Their services encompass EPC, operation and maintenance, and asset management, with a successful track record of over 1 GW of wind energy projects. This solar power company in India has grown its revenue at a yearly rate of 24.81%, higher than the industry average of 11.03%, and its market share increased from 0.73% to 1.21%. This growth highlights why it is one of the top green energy stocks in India.

BF Utilities Ltd

BF Utilities Ltd. is a small-cap wind energy stock established in India in 2000. It generates electricity through windmills and is also involved in infrastructure projects. As of 20th September 2024, the company had a market capitalisation of Rs. 2,817.35 cr., and its share price closed at Rs. 747.95. Furthermore, the green energy company in India is showing positive signs of profitability, with a return on equity (ROE) of 42.55% and a net profit margin of 28.35%.  It remains a strong contender in the top 10 green energy stocks in India.

KPI Green Energy Ltd

KPI Green Energy Limited, based in Surat, Gujarat, is a solar power company in India founded in 2008. As part of the KP Group, it generates and supplies electricity through solar projects under its brand, Solarism. Over the last 5 years, the company’s revenue has grown at a yearly rate of 88.05%, higher than the industry average of 11.03%, and its market share increased from 0.2% to 2.6%. Furthermore, in the same period, the company’s net income has grown at a yearly rate of 78.55%, also higher than the industry average of 17.52%, showcasing its strength in investment in green energy. This stock is also one of the top renewable energy companies in India.

SJVN Ltd

SJVN Ltd., formerly known as Satluj Jal Vidyut Nigam. is a major Indian government-owned renewable energy company in India in the hydropower sector. Present in the renewable energy share list, this renewable energy share in India has also diversified into wind and solar power generation with a growing portfolio. Over the last 5 years, the company’s debt-to-equity ratio has been 66.78, lower than the industry average of 120.95, and its current ratio has been 181.72, higher than the industry average of 107.71, making it a prominent name on the green energy stocks list with price.

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smallcase Green Energy Portfolios

In smallcase, we have green portfolios comprising the largest renewable energy companies in India that primarily focus on clean energy in India and green energy business. Through these portfolios, investors can analyse green energy business practices, assess initiatives of clean energy in India, and evaluate green and clean energy solutions. Afterwards, investors can consider their environmental, social, and governance (ESG) performance to make an informed decision on top renewable energy companies in India. Here are two popular smallcase Green Energy portfolios:

• Green Energy smallcase: This smallcase managed by Niveshaay comprises green energy stocks poised to benefit from the shift from fossil fuels to renewable energy sources, which will drive growth in power generation and related sectors. It includes companies involved in grid infrastructure modernisation and distribution network improvements alongside those profiting from electric mobility and recycling.

Green Energy smallcase by Niveshaay

• Electric Mobility smallcase: This smallcase, managed by Windmill Capital, comprises companies investing in the electric vehicle ecosystem and is expected to grow with the increased adoption of EVs.

Electric Mobility smallcase by Windmill Capital

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

What is Green Energy Stock in India?

Clean and renewable energy stocks are like the superheroes of the stock market. 

Green energy stocks represent companies developing alternative technologies using renewable resources like sunlight, wind, heat, low-impact hydroelectric sources, and certain forms of biomass. The top renewable energy companies in India aim to minimise pollution and carbon emissions while reducing reliance on fossil fuels. Investing in green energy stocks in India aligns with the global push towards green energy. It is also a viable opportunity for investors looking to be part of the expanding green energy business and clean energy in India.

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

India’s Finance Minister Nirmala Sitharaman presented the interim Budget for 2024-2025 on February 1, 2024. The budget avoided grand announcements but highlighted key allocations and targets for the climate and energy sectors. For investors interested in Indian renewable energy stocks, the budget promises to create opportunities in top renewable energy companies by supporting policies that boost the green and clean energy transition. Some of these highlights significant for the green energy sector include: 

Energy, Climate, and Environment Sector Highlights

1. The Ministry of New and Renewable Energy received an allocation of Rs. 19,100 cr. in 2024-2025, higher than the revised allocation of Rs. 7,848 cr. in 2023-24.
2. The funding for grid-based solar power increased to Rs. 10,000 cr. in 2024-25 from Rs. 4,757 cr. in 2023-2024. 
3. Rooftop solarisation aims to cover 10 million houses, each receiving 300 units of free electricity monthly.
4. Wind power allocation rose slightly to Rs. 930 cr. in 2024-2025 from Rs. 916 cr. in 2023-2024. Offshore wind energy to receive viability gap funding for an initial 1 gigawatt (GW) capacity.
5. Coal gasification and liquefaction projects of 100 tonnes capacity to be established by 2030.
6. The funding for the National Green Hydrogen Mission increased to Rs. 600 cr. from the funding of Rs. 100 cr. allocated in the previous year.
7. The budget for the Union Ministry of Environment, Forests, and Climate Change increased to Rs. 3,265.53 cr. from last year’s allocation of Rs. 3,079.4 cr.
8. The Union Ministry of New and Renewable Energy’s budget rose to Rs. 12,850 cr. from the allocated Rs. 10,222 cr. last year.
9. The Ministry of Power’s allocation decreased to Rs. 20,502 cr. for FY25 from the allocation of Rs. 20,671 cr. in FY24.

Electric Vehicle Sector Highlights

1. Notably absent in the Budget speech was any mention of the FAME scheme. The FAME India scheme is an initiative by the Indian government to increase the adoption and use of electric and hybrid vehicles. However, Rs. 2,671 cr. was allocated to the scheme, down from the allocation of Rs. 4,807 cr. last year.
2. The 2024-25 budget has increased the budget for the production-linked incentive (PLI) scheme for automobiles and auto components to Rs. 3,500 cr. This is a significant rise from the Rs. 484 cr. allocated in the revised 2023-24 budget, marking a 624% increase.
3. The focus appears to shift towards supply-side measures with reduced customs duties on critical minerals for EVs. The impact of reduced EV subsidies on sales, especially for two- and three-wheelers, remains a concern.

Petroleum and Natural Gas Sector Highlights

1. Compressed biogas received a significant push with Rs. 498 cr. allocated for pipeline infrastructure development.
2. Rs. 150 cr. was allocated to improve biomass collection. This enhances the feedstock availability for biofuels.
3. First-time allocations of Rs. 332 cr. and Rs. 388 cr. for mission Anveshan and extended continental shelf appraisal indicate a focus on expanding oil and gas reserves.

This Budget suggests a reshaping of priorities for India’s energy transition, with a focus on energy storage and nuclear energy, as well as waste-based biofuels.

Types of Green Energy Stocks

Although there are many other green energy stocks in India, we have categorised some direct green energy stocks that are listed below:

• Clean Energy Stocks: Indian green energy stocks represent companies producing and providing renewable energy sources like solar, wind, hydro, geothermal, and bioenergy. They are among the best green energy stocks in India, and they include renewable energy penny stocks.
• Solar Energy Stocks India: The top solar energy stocks in India include renewable energy companies that produce solar panels and provide installation services for residential and commercial projects. The list of solar energy shares in India is one of the top renewable energy companies in India.
• Wind Energy Stocks in India: The best solar stocks in India are primarily composed of wind energy stocks in India and renewable energy companies. These companies produce wind turbines and provide installation services for onshore and offshore wind farms.
• Hydro Energy Stocks: Companies in this category operate hydroelectric power stations that leverage water flow to generate electricity, contributing to clean energy in India. These are some of the best green energy stocks in India for green and clean energy investments.
• Geothermal Energy Stocks: Green energy companies in India develop geothermal power plants that can generate electricity by harnessing the earth’s natural heat.
• Bioenergy: Any green energy company in India that produces biofuels like ethanol and biodiesel and operates biomass power plants. These companies are significant in the green and clean energy sector.

Features of Green Energy Stocks in India

Here are a few key features of green energy stocks in India:

Commitment to Environmental Responsibility

Companies from the green energy stock list in India predominantly represent companies that are deeply committed to environmental responsibility. These green energy companies in India firms prioritise renewable energy sources such as solar, wind, and hydropower, which are key components of clean energy stocks in India. This commitment makes the top green energy stocks in India highly appealing to investors seeking eco-conscious investments.

Resilience to Economic Fluctuations

A notable feature of top renewable energy companies in India is their resilience to inevitable economic fluctuations. The increasing global emphasis on sustainable practices drives this resilience. As the world pivots towards cleaner energy alternatives, investments in the top renewable energy stocks in India offer good stability.

Government Support and Initiatives

Policies favouring clean energy play a pivotal role in enhancing the growth of green energy stocks in India. The regulatory backing creates a favourable environment for investors looking to participate in the list of renewable energy stocks in India.

Innovation and Technological Advancements

Clean energy companies in India, particularly those on the green energy stock list, are engaged in research and development of cutting-edge technologies for renewable energy solutions and have the potential to experience substantial market gains. This innovation-centric aspect adds dynamism to the green energy sector.

Consideration of Regulatory Landscape

Individuals investing in renewable energy stocks in India must be vigilant about the regulatory landscape. The sector is subject to policy changes and government interventions that can significantly impact the performance of these green renewable energy stocks in India.

Why Switch to Green Energy?

Imagine a world where the sky is crystal clear, the air is crisp, and the natural beauty of our planet is preserved. A world where we don’t have to worry about the harmful effects of fossil fuels and can enjoy an abundance of renewable and clean energy sources that are affordable and accessible.

This is the world we can create if we switch to green energy. By adopting clean and renewable energy sources such as solar, wind, and hydropower, we can significantly reduce our carbon footprint and mitigate the effects of climate change. Investing in renewable energy stocks in India, particularly the best green energy stocks in India, can be better for our environment.

Therefore, by switching to green energy, we can create a brighter and more sustainable future for ourselves and future generations. It is possible for investors interested in renewable energy stocks in India to make real contributions in this field by investing in the best green energy stocks in India. As the list of renewable energy companies in India is endless, investors can conduct thorough research and consider their risk tolerance before making any investment decision.

Green Energy vs Renewable Energy

Green energy refers to renewable energy sources that produce minimal pollution. While people often use “green energy” and “renewable energy” interchangeably, there’s a crucial distinction. While all green energy sources are renewable, not all renewable sources are entirely green. For instance, solar power is both green and renewable, while burning wood is renewable but not green, as it contributes to air pollution. Green energy is a subset of renewable energy, and it plays a crucial role in the clean energy stocks in India.

How to Identify Green and Renewable Energy Investments?

Identifying truly sustainable investments requires a thorough understanding of the company, its operations, and its environmental impact. Here are some steps to follow when evaluating green energy stocks:

• Focus on Renewable Energy Sources: Look for companies that derive a significant portion of their revenue from renewable energy sources such as solar, wind, hydroelectric, or geothermal power. They can be found in the top 10 renewable energy stocks in India or even the top 20 renewable energy stocks.
• Carbon Footprint: Companies prioritising reducing greenhouse gas emissions through energy efficiency measures or carbon offset programs demonstrate a commitment to environmental responsibility. This is crucial when evaluating any green energy related stocks in India.
• Regulatory Compliance: Companies operating following strict environmental laws are less likely to face legal and financial repercussions in the future. This is particularly important for green energy sector stocks in India, where government policies can significantly impact a company’s performance.
• Track Record of Innovation: Companies that invest in research and development to improve energy efficiency or develop new renewable energy solutions are better positioned for long-term growth. Many of these companies are listed among the top 10 renewable energy stocks in India.
• Industry Leadership and Partnerships: Collaboration with other green energy firms, government agencies, or research institutions can accelerate innovation and market penetration. 

Why Invest in Green Energy Stocks?

Global energy demand is on a steady upward trajectory, projected to surge by almost 50% by 2050, fueled by emerging economies and developing nations. Simultaneously, scientists warn of escalating temperatures attributed to greenhouse gasses like carbon dioxide. The looming rise of over two degrees Celsius prompts nations to explore alternatives to fossil fuels, creating a market niche for investors keen on green energy opportunities.

How to Invest in the Top Green Energy Stocks (India)?

The following approach can be adapted when considering investments in the in the renewable energy sector, including the best energy stocks to buy in India.

• Research Green Energy Stocks: Investigate the top 10 renewable energy stocks in India or even the top 20 renewable energy stocks to understand their market positions. These lists can provide insight into the leaders in the renewable energy sector stocks.
• Evaluate Stock Prices and Analytics: Review the list of green energy shares based on their 5-year average return on investment and their prices to gauge market valuations.
• Select Stock Types: Choose clean energy stocks based on your investment goals and risk tolerance. The best green hydrogen stocks in India typically range from mid-cap to high-cap with varying returns and risks.
• Analyse Financial Health and Position: Examine financial reports, market performance, and growth prospects of your chosen green energy firms. This analysis will help you understand their stability and future potential.
• Use Advanced Tools: Leverage tools like the Tickertape Stock Screener to create a personalised ‘Custom Universe’ for renewable energy stocks. The Tickertape Stock Screener has over 200 filters. Investors may refine their criteria and build a focused list for insightful analysis.

These steps provide a structured approach to investing in green energy stocks. It makes it easier to understand and engage with this market.

Risks of Investing in Green Energy Stocks

Here are a few risks of investing in green power stocks in India:

• Heavy Reliance on Thermal Energy: India’s predominant reliance on thermal energy, specifically coal-based power, stands at 75% in FY 2022-2023. This dependence is rooted in the widespread availability and cost-effectiveness of fossil fuels. The transition to alternative energy sources is a gradual process, challenging the possibility of an immediate shift.
• Renewable Energy Production and Distribution Challenges: Beyond the generation of renewable energy, challenges extend to the maintenance, distribution, and storage of these green shares’ resources. Green sources like solar and wind energy are constrained by their intermittent nature, tied to sunlight and wind availability. 
• Demand-Supply Gap and Peak Energy Requirements: Addressing the demand-supply gap proves challenging, especially considering India’s higher energy requirements in the evening. This imbalance affects even the best renewable energy stock in India.
• Intermittency of Renewable Sources and Seasonal Variations: Solar and wind energy availability is subject to natural conditions, with sunlight limited to daytime and wind patterns influenced by geography and climate. This can be a risk factor for even the best renewable energy company in India.
• Cost Inefficiencies in Green Energy Solutions for Storage: While efficient energy storage, mainly through batteries, could be a solution, the current cost-effectiveness of this method remains a barrier. 

Benefits of Investing in Green Energy Stocks

Investing in clean energy stocks in India can be a smart and exciting way to help the environment while potentially earning profit. Let’s learn how: 

• Growing Industry: The clean energy industry or wind energy stocks are rapidly increasing; thus, investing in it can result in high returns. Many of these stocks are featured in the green energy stocks list with price, making it easier for investors to evaluate their potential.
• Sustainable: Clean energy sources will continue to generate power in upcoming years, increasing the demand for solar power company in India shares. Sustainable investments in the top 10 green energy stocks in India are expected to grow with rising global demand.
• Reduced Carbon Footprint: Clean energy helps reduce carbon emissions, which is good for the planet. Investing in Indian renewable energy stocks contributes to a greener future, aligning with the one step towards green and clean energy movement.
• Green Job Creation: The clean energy industry creates new job opportunities, contributing to economic growth.
• Diversification: Investing in renewable energy stocks in India diversifies your portfolio, reducing risks and increasing returns. This provides a more balanced approach to investment in green energy.
• Positive Impact: By investing in clean energy stocks, you support green energy companies, including solar energy companies, on the Indian NSE that positively impact the environment and society.
• Government Support: Governments worldwide support the clean energy industry with incentives and subsidies. 

Who Should Invest in Renewable Energy Stocks in India?

Investing in clean and renewable energy stocks in India is recommended, especially for those passionate about the environment, sustainability, and reducing carbon emissions. Above all, these green energy penny stocks in India offer an opportunity to invest in companies prioritising eco-friendly practices and green technology. It can be an excellent deal if you prioritise long-term green energy investments and want to contribute to a more sustainable future. 

Investors must research and/or consult their financial advisors on the green energy stocks price listed in the green energy stocks list before investing in any stock. 

Factors to Consider Before Investing in Green Energy Stocks

Government Policies

Investors can analyse the impact of government policies, incentives, and subsidies on the growth of the best green energy stocks in India. Such policies can significantly affect the performance of green energy stocks NSE and other exchanges.

Innovation

Look for companies that invest in innovation and new technologies, as they have higher chances of growth. This is particularly important when evaluating top green energy companies in India, which often lead the way in technological advancements within the green energy sector.

Competition

Evaluate the competition and market trends in the green energy industry, including wind energy stocks in India and green fuel stocks. Investing in companies with a competitive advantage can provide better returns, especially those in the top green energy stocks in India.

ESG Performance

While looking at the best renewable energy stocks in India, consider the company’s environmental, social, and governance (ESG) performance, which is a strong indicator of long-term sustainability. Companies excelling in these areas also featured among green energy penny stocks in India.

Risk

Investors can assess the risks associated with investing in top energy stocks in India, including regulatory and potential technology risks. This assessment is crucial when considering the green energy smallcase stocks list, where market dynamics can rapidly shift.

Diversification

Diversify your portfolio by investing in multiple green energy smallcase stocks to mitigate risks and maximise returns. The best green energy stocks in India provide options to spread your investment across various segments of the green energy market.

Long-Term Perspective

Investing in the best renewable energy stocks in India requires a long-term perspective, as the industry is still evolving, and returns may take time to materialise. Including green energy penny stocks in India can be part of a diversified approach that balances risk and growth potential.

However, analysing and researching every step can be overwhelming. At smallcase, we have SEBI-registered research analysts who conduct extensive research, so you don’t have to. Now, you can easily invest in green energy stocks in India from the best renewable energy stocks listed on the smallcase app or website.

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To Wrap It Up…

To conclude, India’s green energy and renewable stocks industry is a growing sector with immense potential. Thus, if green energy shares catch your eye, there can be plenty of direct approaches through which you can make your portfolio green. However, you don’t have to choose individual companies to invest in India’s green energy and renewable stocks. Nonetheless, at smallcase, we have a basket of the best-performing companies created by professionals and backed by tons of research. So, go green with smallcase today!

Frequently Asked Questions About Green Energy Stocks