Top Clean Energy Stocks in India: Clean Energy Stocks

Clean energy stocks allow investors to contribute towards sustainable and clean energy production in India. Clean energy helps in minimising the emissions of greenhouse gases and helps in balancing the impact of climate change. 

What are Clean Energy Stocks?

Clean energy stocks refer to the shares of companies that produce or support clean energy services in India. These services may include the production of solar, wind, geothermal, and hydroelectric energy, or the manufacturing of related infrastructure and products. 

Investors who prefer to invest with a motive of generating financial returns while making sustainable contributions can invest in clean energy stocks. These stocks are heavily supported by the government through various policies and incentives, indicating high growth prospects in the coming years. 

List of Clean Energy Stocks in India

Explore the top clean energy stocks in India to invest in 2025!

Disclaimer: The above table is for informational purposes only. Univest is not suggesting buying or selling these clean energy stocks in India. The data is derived from Univest stocks and is subject to real-time updates. 

Clean Energy Stocks in India: Company Overview

The top clean energy stocks include Reliance Industries Ltd., NTPC Ltd., Adani Green Energy Ltd., and many others. These stocks are a lucrative investment to capitalise on the growth of the sustainable and clean energy sector in India.

1. Reliance Industries

Founded: 1966

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹1753592 cr.

Reliance Industries is one of the largest companies in India that is integrating clean energy solutions as a primary part of its services. The company is diversifying its offerings in the clean energy sector through solar, hydrogen, and sustainable fuels. Currently traded at ₹1290.3, it is one of the top clean energy stocks in India.

2. Adani Green Energy

Founded: 2015

Headquarters: Ahmedabad, Gujarat

Market Capitalisation: ₹151465 cr.

Adani Green Energy is a solid pick among the best clean energy stocks in India. It focuses on solar and wind power with the motive to make clean energy more accessible and affordable. The current market price of the stock is ₹950.5, and it is often chosen by investors who want to invest in clean energy stocks with strong company fundamentals.

3. Tata Power Company

Founded: 1911

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹124922 cr.

Tata Power Company stands as one of the most reputed names in the clean energy sector in India. It has expanded its product line with a wide range of solar and wind projects. The current market price of the stock is ₹390.85, making it an affordable option among the best clean energy stocks in India.

4. NTPC

Founded: 1975

Headquarters: Delhi, India

Market Capitalisation: ₹353347 cr.

NTPC is India’s largest power-generating company, building solar and wind projects to take sustainability and clean energy forward. It focuses on generating power while being environmentally responsible and prioritising long-term sustainability. Currently priced at ₹362.5, the stock has a strong market position as one of the top clean energy stocks in India.

5. Waaree Renewable Tech

Founded: 1999

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹11400 cr.

Waaree Renewable Tech is a popular brand in India’s clean energy industry. The company makes solar energy accessible to various consumers and businesses. With a strong financial standing, the stock is traded at ₹1097.45 and is included in the list of best clean energy stocks in 2025.

6. KPI Green Energy Ltd.

Founded: 2008

Headquarters: Surat, Gujarat

Market Capitalisation: ₹8521 cr. 

KPI Green Energy Ltd. is a renewable energy company based in India. It is involved in the development and maintenance of solar and wind energy power plants all across the country. The company’s stock is currently valued at ₹437.85 and has a high potential for growth in the coming years.

7. JSW Energy Ltd.

Founded: 1994

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹91102 cr.

JSW Energy Ltd. is an established company in the clean energy sector in India. It operates in the generation, transmission and trading of various power plants. The current market price of the stock is ₹510.7, and is often chosen by investors who prioritise investing in sustainable companies of clean energy stocks in India.

Overview of Clean Energy Sector in India

As concerns regarding the issues of climate change rise all over the globe, the clean energy sector is at the forefront of a global trend of moving towards sustainability. This has caused an increase in the awareness among consumers as well as investors of an impact-driven social responsibility. With more companies participating in the clean energy sector in India, the demand for clean energy stocks is expected to follow an upward trajectory. 

Moreover, the assistance provided by the government in the form of various tax incentives, subsidies, etc., indicates that the sector will boom. Thus, the clean energy industry provides an opportunity for investors to gain profits while being mindful of their impact on the environment.

Best Performing Clean Energy Stocks With P/E Ratio

Explore the top clean energy stocks in India with their P/E ratio. 

Best Performing Clean Energy Stocks With 5-Year Returns

Look at the best clean energy stocks in India based on 5-year returns.

Benefits of Investing in Clean Energy Stocks in India

The top clean energy stocks in India offer several advantages to investors. Some of them are mentioned below:

• High-Growth Potential

As consumers begin prioritising clean energy utilisation in India, more companies are likely to participate in this long-term sustainability trend. This builds the foundation for a massive growth opportunity in the clean energy sector, enabling investors to anticipate high returns from their investments.

• Support from Government Policies

The government is actively supporting the clean energy sector in India by making loans accessible at lower interest rates, providing grants to clean energy companies, and providing tax incentives and subsidies. Such provisions for government-backed clean energy stocks minimise the costs incurred, expand operations, and help secure long-term contracts. These government policies contribute to the overall growth of the market share of clean energy stocks in India.

• Strong Consumer Confidence

With a rise in awareness of ESG practices, more consumers are shifting towards making sustainable choices. Clean energy stocks in this industry are considered to be ethically aligned, thus attracting more public traction. This builds strong customer loyalty and encourages greater confidence among investors.

• Portfolio Diversification

Clean energy stocks are anticipated to have a strong financial standing in the long run. These are environmentally-friendly companies that have a history of good financial performance and ensure the safety of investments for the investors. Since these companies are driven by the main aim of innovative and sustainable practices, consistent growth and profitability mitigate the risk of an uncertain future. Thus, they prove to be a strategic portfolio diversification technique.

• Sustainable & Ethical Investing

Most investors are inclined towards sustainable investing, that is, investing with an aim for financial returns while simultaneously contributing to the environment. They feel a mental satisfaction that their investments are promoting sustainable growth because even though profit maximisation is essential, ethically aligned investing plays a significant role in a sustainable future.

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Best Performing Clean Energy Stocks With 5-Year CAGR:

Look at the best clean energy stocks in India based on 5-year CAGR.

Key Factors for Investing in Clean Energy Stocks

Before investing in clean energy stocks in India, it is imperative to consider relevant factors for a better evaluation of these stocks, driving sustainability in India. Some of these are:

• Business Model

Researching thoroughly about the company fundamentals of clean energy stocks, especially the business model, is extremely crucial. If the growth strategy, execution plan, company morals, ethics and other fundamentals align well with one’s investment goals, it can help in making well-informed and rational decisions while deciding on clean energy stocks. 

• Future Growth Potential

It is advisable to consider the company’s future growth and expansion plans, partnerships, as well as investments allocated towards the research and development teams. Checking these factors ensures that the company is making consistent efforts to innovate, thus helping it stay updated with advancements made by competitors.

• Financial Performance

It is important to consider the financial health of the company. Factors such as sources of revenue, debt levels, profit growth, cash flows, and other relevant financial ratios help in judging the prospects of gaining profits. A stable financial standing of the company helps investors gain confidence in the safety of their investments in clean energy stocks.

• Geographical Positioning

The top clean energy stocks in India are more likely to succeed when they are operating in regions that have favourable government policies and access to clean sources of energy. This wider accessibility promotes efficiency in operations and procurement of raw materials required.

• Adaptability

The clean energy stocks industry is becoming more dynamic, with more competitors and advancements in the industry. In order to survive in such a dynamic sector, it is extremely important for clean energy companies to build the capacity to adapt and pivot whenever the industry demands so. This ensures a loyal customer base and a strong market reputation, enabling the clean energy stocks to be profitable investments.

Risks Associated With Clean Energy Stocks

While clean energy stocks offer massive growth potential, investors should also consider the risks associated with them. Some common risks include:

• High Sensitivity to Market Volatility

Clean energy stocks that belong to young companies might be highly sensitive to market volatility. This is because companies in their early stages of growth are extremely susceptible to any change in market news or even minor shifts in public sentiment. So, conservative investors might refrain from investing in clean energy stocks. 

• Competition

Companies in their nascent stages, having a smaller market share, might face tough competition from already established players. Having years of expertise and a reputation in the market, large-cap companies have an edge over early-stage companies. Therefore, it may be challenging for companies with clean energy stocks to compete with global rivals.

• Dependency on Government Policies

Companies with some of the best clean energy stocks in India are heavily dependent on the support provided by the government. This support may be in the form of tax incentives, subsidies, grants, and many other favourable policies. However, a change in these government policies at any point could majorly affect the companies operating in the clean energy sector in India. 

• Capital-Intensive Initial Requirement

Building the required infrastructure for companies with clean energy stocks is capital-intensive. In addition to such large capital requirements, these clean energy projects also demand a long time frame to set up the infrastructure. Small companies with lower availability of capital might struggle to raise funds. Moreover, the companies that are investing this capital for infrastructural development might take years to become profitable. 

• Changes in Technology

Clean energy stocks in India belong to a dynamic and innovation-driven industry. The Indian market is consistently evolving with updated and more efficient technologies in the clean energy sector. The adoption of these newer technologies by clean energy companies imposes a risk for the older ones becoming obsolete. If some companies rely only on a particular technology, they might incur losses due to loss of contracts, reduced profits and increasing operational costs. 

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Conclusion

The shift towards sustainable investing through clean energy stocks is not just a temporary trend, but an indicator of an environmentally secure future of the energy sector in India. With increased awareness among consumers and investors, the clean energy stocks in India are expected to be profitable in the long run. Nonetheless, it is advisable to be careful while considering the risks associated with them.

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FAQs on Clean Energy Stocks

1. What are clean energy stocks?

Ans. Clean energy stocks refer to the shares of companies that produce or support clean energy services in India. These services may include the production of solar, wind, geothermal, and hydroelectric energy, or the manufacturing of related infrastructure and products. 

2. What are the best clean energy stocks?

3. Is it safe to invest in clean energy stocks?

Ans. Yes, it is safe to invest in clean energy stocks in India because they are supported by the government and have high prospects of growth. However, it is advisable to gather thorough knowledge and create a proper risk-management plan to ensure maximum profits.

4. What are the benefits of investing in clean energy stocks?

Ans. Investing in clean energy stocks offers multiple benefits to investors. Some of them are that clean energy stocks have high-growth potential investment options and help in diversifying the investment portfolio. Moreover, these stocks are heavily supported by the government. So, investors are more confident about investing in these ethically aligned clean energy stocks.

5. What factors to consider when investing in clean energy stocks?

Ans. Before investing in clean energy stocks, factors like the company’s business model, financial standing, adaptability, and geographic location should be considered. In addition to these, one must also factor in the future growth potential of the clean energy stocks to ensure long-term profitability. 

Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

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