Best Solar Energy Stocks in India 2025
Posted by : sachet | Thu Jan 23 2025
Solar energy stocks might have a direct impact on the GOI’s (Government of India’s) aim to achieve net zero emissions by 2070 across all the significant industries in India. As of now, India is harnessing about 748 GW of power from the sun, and the number is expected to increase further.
The solar energy market is projected to grow at a CAGR of 40% by 2032 to reach $238 billion. This will benefit people living in Indian villages by making their energy needs eco-friendly. Moreover, the government is constantly increasing its efforts to promote solar power through the Solar Park Scheme, PLI (Production Linked Incentive), and PM Surya Ghar Muft Bijli Yojana. This will directly benefit the solar energy stocks by increasing their stock prices.
Solar Energy Stocks List By Market Capitalisation
Solar energy stocks in India are the shares or equities of the companies harnessing the power of the sun to generate electricity. These stocks often provide investors with exposure to robust growth and sustainable solutions for the rapidly increasing demand for renewable energy sources.
These companies manufacture and install PV (Photovoltaic) systems. Steady growth and the immense government support for the green and renewable energy sector attract investors’ interest in the best solar energy stocks in India. Explore the top solar energy stocks to benefit from the world’s transition to clean energy sources.
Solar Energy Stocks List By Market Capitalisation
| Stock Name | LTP (₹) | Market Capitalisation (₹ Cr.) | 52-Week High (₹) | 52-Week Low (₹) |
|---|---|---|---|---|
| NTPC Ltd. | 369.20 | 3,64,000 | 448.45 | 272.80 |
| Adani Green Energy Ltd. | 1,318.70 | 1,56,000 | 2,174.10 | 870.25 |
| Tata Power Company Ltd. | 426.90 | 1,38,000 | 494.85 | 276.50 |
| JSW Energy Ltd. | 644.20 | 1,16,000 | 804.90 | 397.65 |
| Suzlon Energy Ltd. | 65.50 | 90,250 | 86.04 | 33.90 |
| SJVN Ltd. | 115.70 | 45,030 | 170.50 | 81.05 |
| KPI Green Energy Ltd. | 806.50 | 10,300 | 1,118.00 | 374.40 |
| Orient Green Power Company Ltd. | 17.88 | 2,080 | 31.88 | 16.57 |
| Zodiac Energy Ltd. | 496.10 | 738.49 | 816.50 | 141.00 |
*Data is updated as of 3rd December 2024
Factors to Consider When Investing in Solar Energy Stocks in India
We can expect an upside movement in the best solar energy stocks in India because of extensive government support and India’s production capacity. However, there are still some factors investors should consider before investing their invaluable money in these stocks. These factors could help them make a diversified investment portfolio in the long run.
- Competitiveness: The rise in demand for solar energy across the globe encouraged companies to compete aggressively. High competitiveness might impact the performance of the organisation in terms of sales and profitability. Investors looking for top solar energy stocks should assess the company’s credibility to compete with other players in the same industry. It could help you get an advantage of high resilience during market volatility in the stock market.
- Economic Slowdowns: We all are aware of the economic slowdowns. They include recession, health consequences, and more. Due to economic downturns, solar energy stocks may show high volatility. It may impact the stock prices significantly. However, solar stocks are somewhere resilient in nature. However, it is essential to safeguard against any uncertainty that may arise in the future. We should consider these economic downturns as the key factor to assess fluctuation in prices of the best solar energy stocks in India.
- Government Initiatives: The solar industry has extensive support of government policies and initiatives. These include the CPSU Scheme, Defence Scheme, Solar Park Scheme, VGF Scheme, and more. Keep an eye on such government schemes to assess their impact on the top solar energy stocks in India.
Financial Health: Assess the financial performance of the company with the help of different parameters such as YoY income growth, profitability, and cash flow position. Choose the best solar energy stocks representing steady financial success with a good track record of giving results. They are likely to be attractive options to make a diversified portfolio and generate balanced returns.
Top Solar Energy Stocks Based on 1-Year Returns
| Stock Name | 1-Year Returns (%) |
|---|---|
| Zodiac Energy Ltd. | 245.35 |
| KPI Green Energy Ltd. | 103.98 |
| Suzlon Energy Ltd. | 63.32 |
| Tata Power Company Ltd. | 51.62 |
*Data is updated as of 3rd December 2024
Dividend Yield in Solar Energy Stocks in 2024
| Stock Name | Dividend Yield (%) |
|---|---|
| NTPC Ltd. | 1.86 |
| SJVN Ltd. | 1.56 |
| Tata Power Company Ltd. | 0.47 |
| JSW Energy Ltd. | 0.31 |
*Data is updated as of 3rd December 2024
Advantages of Investing in Solar Energy Stocks
The best solar stocks in India could offer investors an impressive level of capital appreciation in the stock market. But do you know it provides several other benefits? Yes, it does. Explore some of the key advantages of investing in solar energy stocks in the below section.
- Diversification: The best solar energy stocks in your portfolio could help you spread the finances and mitigate risk. Thus, investing in a mix of green energy companies can spread your risk across different areas and reduce the effect of instability in any single business.
- Government support: A very strong focus of the GOI (Government of India) on clean energy policies for the solar industry provides support for the growth of solar energy stocks in the country. These initiatives, such as tax rebates, grants, and bold green energy goals, create a supportive environment for the growth of the solar energy industry.
- Higher Growth Potential: As the requirement for clean energy increases, the solar energy industry will experience significant growth. Thus, the best solar energy stocks in India could provide long-term opportunities for investors. The increasing use of solar power, which is primarily driven by growing environmental concerns, favourable government policies, and declining technology costs, forms a healthy platform for the success of solar energy firms.
Environmental impact: Solar energy companies are an investment that contributes to the growth of safe energy sources, combining your financial goals with ecological awareness. As the world progresses toward a greener future, solar energy stocks provide a chance to support this shift and create good results.
Risks Associated With Solar Energy Stocks
Investing in solar energy stocks in India can help build wealth. However, it also comes with several risks and their negative effects. Identify such risks and assess their impacts on stock performance in the upcoming decades.
| Risks | Impact |
Supply Chain Disruption | Solar energy stocks in India are involved in massive exports. Thus, they are highly dependent on an effective distribution network to maintain profitability. Any disruption in the supply chain might decrease their sales. |
Political Changes | Changes in policies and subsidies can impact the profitability of the best solar energy stocks in India. |
Technological Disruptions | Insufficient capital can prevent solar companies from integrating technological advances in this rapidly evolving technological era, which could impact their competitiveness and profitability in the business environment. |
Let’s Wrap
The public-private partnership is building eco-friendly infrastructure with the help of clean energy solutions. The government has huge aims for solar power and is consistently working to achieve them optimally. Thus, investing in the best solar energy stocks in India could be an apt choice for investors. But, it is essential to conduct your own research to identify the significant factors and their impact on the stock performance. You can also seek a stock advisory service to choose the fundamentally strong solar energy stocks to invest in.
FAQs Best Solar Energy Stocks
1. Which solar energy stocks are listed on stock exchanges?
Ans. Here are some solar energy stocks in India listed on the NSE (National Stock Exchange).
- Adani Green Energy Ltd. (NSE: ADANIGREEN)
- NTPC Ltd. (NSE: NTPC)
- JSW Energy Ltd. (NSE: JSWENERGY)
- Tata Power Company Ltd. (NSE: TATAPOWER)
- Orient Green Power Company Ltd. (NSE: GREENPOWER)
- KPI Green Energy Ltd. (NSE: KPIGREEN)
- Zodiac Energy Ltd. (NSE: ZODIAC)
- Suzlon Energy Ltd. (NSE: SUZLON)
- SJVN Ltd. (NSE: SJVN)
2. Is it good to invest in solar energy stocks in India?
Ans. The solar energy market in India is projected to grow with a CAGR of 40% by 2032. This robust growth position might offer investors steady returns and wealth-generation opportunities. Immense support of government schemes or initiatives makes solar power stocks a popular choice for investors. It is essential to conduct research on stocks and their fundamentals to avoid any type of risk on solar energy stocks.
3. How to invest in solar energy stocks?
Ans. Investing in the best solar energy stocks in India is easy. You just need to follow the steps mentioned below.
- Identify the goals behind investment and select the direction to achieve them.
- Research the best solar energy stocks in India and consult your financial advisor to choose the best investment options.
- Select the fundamentally strong shares and choose the quantity you wish to buy.
- Place an order with your demat account and invest in potentially.
- Monitor your portfolio and wait for the right time to book profit.
4. Which is the largest solar energy company in India?
Ans. NTPC Ltd. is the largest solar energy company in India, with a market capitalisation of ₹3,64,000 crores. The company was founded in 1975 and is currently headquartered in New Delhi. NTPC is dedicated to lighting every corner of the country to build a sustainable future for all. Moreover, the government operates this organisation under the Ministry of Power.
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Explore 52-Week Highs & Lows at Univest
Among 5000+ stocks listed on the Indian stock market, some are trading at their highest and lowest prices. These prices are the highest or lowest of the whole year. Explore the 52-week highs & lows at Univest.
52-Week Highs
| Stock Name | Current Market Price (in Rs) | Symbol |
| SRF Limited | 2,850.05 | SRF |
| Zensar Technologies Limited | 861.95 | ZENSARTECH |
| Navin Fluorine International Limited | 4,230.00 | NAVINFLUOR |
| Blue Jet Healthcare Limited | 723.30 | BLUEJET |
| MPS Limited | 2,592.40 | MPSLTD |
| Jindal Drilling & Industries Limited | 952.05 | JINDRILL |
*Data is updated as of 31st January 2025.
52-Week Lows
| Stock Name | Current Market Price (in Rs) | Symbol |
| Bank of Baroda Limited | 213.34 | BANKBARODA |
| Container Corporation of India Ltd. | 742.00 | CONCOR |
| Indraprastha Gas Limited | 199.00 | IGL |
| Whirlpool of India Limited | 1,158.85 | WHIRLPOOL |
| Raymond Lifestyle Limited | 1,395.40 | RAYMONDLSL |
| Can Fin Homes Limited | 663.90 | CANFINHOME |
| Tanla Performs Limited | 557.20 | TANLA |
| Honasa Consumer Limited | 217.30 | HONASA |
| TVS Supply Chain Solutions Limited | 139.00 | TVSSCS |
| Diamond Power Infrastructure Limited | 113.99 | DIACABS-BE |
| Aditya Vision Limited | 421.00 | AVL |
| TeamLease Services Limited | 2,425.70 | TEAMLEASE |
| La Opala RG Limited | 261.00 | LAOPALA |
| Nucleus Software Exports Limited | 926.10 | NUCLEUS |
| Landmark Cars Limited | 504.95 | LANDMARK |
*Data is updated as of 31st January 2025.
