Top Solar Stocks in India: Best Shares to Invest in 2024

India is making significant strides in the solar energy sector, driven by the government’s ambitious renewable energy targets. The country’s installed solar capacity has grown to 84.27 GW from 2.6 GW in 2014. Further, India stands in 5th position globally in solar power capacity. Considering these, investors may be looking for the best solar power stocks and other opportunities for investment in solar energy in India.  Therefore, in this blog, let’s explore the top solar companies in India listed in the stock market and the top 10 solar energy stocks in India, along with their features, how to invest, risks, advantages, and more.

Top 10 Solar Industries to Invest in 2024

The Government of India has begun to realise the importance of solar energy, boosting the momentum of solar energy share prices. Therefore, look at India’s best solar energy stocks list. These are the top solar companies in India listed in the stock market, including solar penny stocks in India:

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 solar energy share list, including the solar industries India share price, is subject to real-time updates. Also, check out the list of top green energy stocks India.

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Best Solar Energy Stocks in India 2024: An Overview

Adani Green Energy Ltd

Adani Green Energy Ltd (AGEL) is a key player in the renewable energy sector. It boasts one of the largest global renewable portfolios, totalling 20.4 GW across operating, under-construction, and awarded projects. Despite a robust 37.55% increase in net sales to ₹3,033 crore in Q2 FY25, AGEL’s consolidated net profit declined by 25.81% to ₹276 crore compared to Q2 FY24. Recent regulatory challenges, including criminal and civil actions by the US DOJ and SEC, have led to a halt in proposed USD-denominated bond offerings. However, AGEL is poised for a potential 133.02% return from its current price levels despite a historical CAGR of -4.27%. Investors looking at solar power share prices and renewable energy stocks should keep an eye on this stock.

JSW Energy Ltd

JSW Energy is positioned for an expected revenue growth of 20.79% in the next year, surpassing its 3-year CAGR of 18.55%. With a net profit margin of 14.41% and a debt-to-equity ratio of 95.54% over the last five years—well below the industry average of 166.23%—the company demonstrates financial prudence while maintaining strong growth prospects in the energy sector in the solar sector in India. It is also a noteworthy option for investment in solar energy in India.

Solar Industries India Ltd

Solar Industries India Ltd has exhibited impressive financial performance, with a 68.92% free cash flow growth over the past five years compared to the industry average of 2.62%. The company is expected to achieve earnings growth of 55.88% in the coming year, surpassing its 3-year CAGR of 44.62%. As one of the top solar companies in India listed in the stock market, it offers a robust return on equity (ROE) of 27.06%, highlighting its profitability and efficiency in operations.

NHPC Ltd

NHPC Ltd, a major player in the hydropower sector, maintains a strong financial position with a debt-to-equity ratio of 69.39% over five years, significantly better than the industry average of 127.43%. Its current ratio of 137.15% indicates excellent liquidity, surpassing the industry benchmark of 111.02%. The company boasts a net profit margin of 30.97%, making it a solid option among solar shares in India.

CESC Ltd

CESC Ltd has demonstrated financial stability with a 5-year debt-to-equity ratio of 133.37%, lower than the industry average of 166.23%. Its current ratio of 92.26% exceeds the industry average of 76.11%, signalling good short-term liquidity. Moreover, a cash flow margin of 13.59% underscores the company’s ability to generate strong operational cash flow. For investors exploring renewable energy stocks, CESC Ltd may be reliable choice.

Note: The data mentioned above was taken from 26th November, 2024.

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Investing in Solar Energy Stocks via smallcase

Did you know that you can invest in solar power companies in India through share portfolios managed by SEBI-registered experts? Yes, that’s right.

Let’s learn about smallcase.

A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They help investors build a low-cost, long-term & diversified portfolio with ease. smallcases are created and managed by SEBI-registered investment professionals (also known as smallcase managers).

Among 500+ smallcases, here are some of the top solar industries shares smallcases:

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What are Solar Energy Stocks in India?

Solar energy is a clean and renewable resource with zero emissions. Various devices can harness its tremendous energy potential. In recent years, solar energy stocks NSE have become readily available for industrial and domestic use and are also maintenance-free.

The rapid development in the solar energy market in India has positively impacted investors’ views on investing in solar energy stocks in India. Solar related stocks in India are stocks or shares of companies involved in producing, installing, or distributing solar energy products or services. These solar industry share companies primarily manufacture solar panels, inverters, and other components of solar energy systems. Additionally, many solar panel manufacturers also install, maintain, and monitor solar energy systems, making them integral to this sector.

Thus, investing in the best solar energy stocks in India or government solar stocks in India can expose investors to the rapidly growing renewable energy sector. As the world embraces more sustainable energy sources, experts anticipate India’s solar industry shares will gain increasing importance. Moreover, selling solar energy shares in India, such as solar energy penny stocks in India, could yield significant profits.

Implications of the Union Budget 2024-25 on the Solar Energy Sector in India

Finance Minister Nirmala Sitharaman made history with her seventh consecutive Budget presentation. Here are a few allocations made in the Union Budget 2024-25 that may be relevant to the solar power companies in India:

1. Sitharaman announced the Pradhan Mantri-Surya Ghar Muft Bijli Yojana (PM Free Electricity Scheme). This initiative aims to provide free electricity up to 300 units per month to one crore households through rooftop solar (RTS) installations. This policy can creates opportunities for those invested in solar company stocks.
   
   The scheme has already seen significant interest, with over 1.28 crore registrations and 14 lakh applications. Expected benefits include annual household savings of Rs. 15,000-18,000 from free solar electricity and selling excess power to distribution companies, as well as opportunities in electric vehicle charging, entrepreneurship for vendors, and job creation in solar panel manufacturing and maintenance.
2. Sitharaman introduced policies to support pump storage projects for continuous energy supply. She announced a joint venture between NTPC and BHEL to set up an 800 MW supercritical thermal power plant with higher efficiency.
3. The budget proposed expanding the list of exempted capital goods used in solar cell and panel manufacturing while removing customs duty exemptions for solar glass, plain glass, and thinned copper interconnect due to sufficient domestic manufacturing capacity.

India’s Solar Energy Goals and Opportunities for Investors

Solar energy is pivotal for India’s target of generating 500 GW of renewable energy by 2030. This goal not only reduces dependency on fossil fuels but also directly addresses climate change challenges. Investing in solar system stocks or solar energy penny stocks in India aligns with these objectives, offering substantial opportunities for growth.

Whether investors consider the list of solar stocks in India, focus on solar company stocks, or explore the top 10 solar panel stocks, the Indian solar energy sector presents enormous potential. With policies supporting solar panel manufacturers, the rise of EV solar share prices, and advancements in technology such as EV solar AI shares, the sector continues to grow robustly.

Why Invest in Solar Energy Stocks?

Investing in the best solar energy companies in India offers numerous benefits due to the country’s strategic initiatives and natural advantages. Here are key reasons why investment in solar-related stocks in India might be an attractive option: 

• Historical Foundation: The Rural Electrification Program of 2006 marked the Indian Government’s initial step toward enhancing rural energy consumption via solar power. Investors looking for penny stocks in solar energy in India can trace the sector’s steady expansion back to these foundational efforts.
• Government Support and Incentives: The National Action Plan on Climate Change highlights India’s solar potential, noting its favourable climate for decentralised energy distribution. This initiative strengthens the position of solar panel manufacturers in India listed companies.
• Rapid Growth Potential: India’s solar sector has seen exponential growth, with installed solar capacity surging from 1.60 GW in 2013 to over 84 GW by mid-2024. For investors, the solar energy stock list continues to grow, including promising solar panel stocks in India and rising solar energy company share prices, which reflect this rapid development.
• Technological Advancements: The solar industry continually evolves, improving efficiency and reducing costs. Companies on the solar energy stock list in India investing in R&D are well-positioned to capitalise on these innovations. This makes the best solar panel stocks in India increasingly competitive with traditional fossil fuels.

India’s commitment to expanding its renewable energy capacity and reducing carbon emissions ensures that solar energy listed companies in India are positioned for significant growth.

Features of Solar Companies Listed in NSE

India’s solar energy sector is flourishing, with several companies listed on the National Stock Exchange (NSE). Here are some key features you might find across the top solar companies in India listed in the stock market:

• Robust Project Pipelines: Solar companies listed on the NSE manage large project portfolios, including utility-scale solar farms, to meet industrial and domestic energy demands. Many top solar panels in India are incorporated for scalability and efficiency.
• Commitment to Sustainability: Solar energy companies in India listed in the stock market emphasise environmental responsibility and contribute to India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030. Leading top solar panel companies in India play a vital role in this mission.
• Technological Advancements: Listed solar companies invest in cutting-edge technology to improve the efficiency and cost-effectiveness of their solar projects. The best solar EPC companies in India invest in advanced PV cells, energy storage, and grid technology to enhance cost efficiency and innovation in solar projects.
• Resilient Business Models: Solar firms often operate under long-term power purchase agreements (PPAs). This model provides a stable foundation for their growth plans, making them attractive among the top solar stocks in India in the list of solar energy companies in India.
• Supportive Government Policies: Incentives like subsidies and tax benefits help solar companies in India thrive. Policies bolster the growth of top solar panel companies in India and boost confidence in the solar energy companies in India listed in the stock market.

How to Invest in Solar Energy Stocks in India?

Investing in solar energy stocks in India can be a promising opportunity. Here are the steps you can follow to invest in solar stocks to buy in India:

• Open a Trading Account: To invest in a solar energy share in India, you need to set up a Demat and trading account. This account allows you to hold and trade shares electronically. You can open these accounts through a brokerage firm, which will facilitate your stock transactions.
• Research Top Solar Companies & Industry Trends: To invest in solar energy stocks, use the Tickertape Stock Screener and start by identifying reputable solar energy firms with strong financials and growth potential. Also, assess the regulatory environment, government policies, and market demand for renewable energy.
• Evaluate Company Performance: It’s important to analyse the financial health, growth prospects, and industry outlook of the companies you are considering. You might want to look at their revenue trends, profitability, debt levels, and future growth projections. 
• Place Orders: Buy solar panel stocks in India via your broker or directly from the company. Monitor your investments and market trends to optimise returns from the best solar shares in India.

Who Should Invest in the Listed Solar Companies in India?

Investing in listed solar companies in India can be appealing for several reasons. Here’s a breakdown of who might benefit from this type of investment:

• Investors with a Long-Term Horizon: The solar industry is expected to grow significantly in the coming years, but this growth might take time. Investors seeking long-term capital appreciation aligned with this potential growth trajectory could find listed solar companies attractive.
• Risk-tolerant Investors: The stock market inherently carries risk, and solar companies can be volatile. Investors comfortable with this level of risk and potentially higher returns might consider investing in a solar stock in India.
• Believers in Sustainable Energy: If you’re passionate about clean energy and want to align your investments with your values, solar companies can be an option.

Risk of Investing in Solar Industries Shares

Here are the two primary risks associated with solar power company shares in India: 

• Competition from Traditional Energy Sources:  Fluctuations in the prices and demand for these traditional energy sources can impact the performance of even the best solar company stock in India.
• Global Economic Conditions: Global economic conditions can affect solar industry shares. Events like the COVID-19 pandemic have disrupted global supply chains, impacting the solar industry’s supply of raw materials and components. This can lead to temporary declines in solar energy stock prices of even the top solar energy stocks in India.

Advantages of Investing in Solar Industries Shares

The rising solar energy corporation of India share prices and the government’s push for renewable energy is expected to drive significant growth in the solar industries in India. Some of the advantages of investing in the top 10 solar stocks in India are listed below: 

• Potential for Long-Term Growth: The solar industry has steadily grown over the past decade. The increasing demand for renewable energy and the declining cost of solar technology will boost the growth of solar power stocks in India for many years.  
• Diversification of Portfolio: Investing in the best solar stocks in India can help diversify a portfolio and reduce risk. Solar energy stocks in India can offer a different risk and return profile than traditional energy stocks. Thus, it exposes investors to a different sector of the economy.
• Positive Environmental Impact: Solar energy is a clean and renewable energy source. Evaluating the share price of solar industries can help support the transition to a more sustainable energy system. Investing in the best solar stocks in India can help reduce greenhouse gas emissions and mitigate climate change.
• Potential for High Returns on Investment: As the solar company share prices continue to grow, there is the potential for high returns on investment. Thus, solar company shares that can compete effectively in the market continue to innovate. Furthermore, they offer growth and profitability in solar power shares.

Future of Solar Energy Stocks

With the government aiming to achieve 500 GW of renewable energy capacity by 2030, solar power is expected to play a significant role. Technological advancements, declining costs of solar equipment, and supportive policies like production-linked incentives (PLI) are likely to fuel growth in the solar sector. As a result, solar energy stocks could see substantial long-term appreciation, making them an attractive option for investors focused on clean energy and environmental sustainability.

Factors to Consider Before Investing in Solar Stocks

Suppose you’re considering investing in solar industry shares in India. In that case, there are several factors to consider to ensure a well-informed investment decision, including the performance of solar energy business stocks and the current state of the top solar stocks in India.

Government Policies and Incentives

Government policies and incentives can significantly impact the growth and profitability of solar industry shares in India. These policies have created a favourable environment for the best solar stocks in India, including solar panel shares and companies listed in the stock market that manufacture solar energy equipment. This support has boosted the performance of leading solar companies, reflected in the solar company share price list in India.

Portfolio Diversification

Portfolio diversification is crucial when investing in solar energy stocks in India. Investing in solar sector stocks, such as those of top solar energy companies in India, can help diversify a portfolio. Investors can assess the potential impact of adding solar panel stocks in India to enhance the balance of their investments, given the growing share of solar energy in India.

Competition from Traditional Energy Sources

Solar industry shares face competition from traditional energy sources such as coal, oil, and gas. These conventional energy sources are still widely used in India, and their fluctuating prices can impact solar energy companies listed in the stock market in India. This competition may influence the solar stock price and the overall performance of solar power stocks in India.

Global Economic Conditions

Global economic conditions can affect solar industry shares. For instance, the COVID-19 pandemic disrupted global supply chains, impacting even the top solar stocks in India and the availability of components critical for manufacturing. This led to a temporary decline in solar panel share prices, affecting other solar-related stocks in India.

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To Wrap It Up…

To conclude, India has great potential to generate electricity from solar energy and emerge as a solar energy hub. Experts predict that solar power company share prices will rise as the Indian government continues to promote the best solar stocks in India. Luckily, you don’t have to monitor every share in the solar industry. How? Now, you can get exposure to portfolio investing via smallcase by choosing a portfolio of the top solar companies in India listed in the stock market within a click!

Frequently Asked Questions About Solar Stocks