Top Solar Energy Stocks in India to Invest

India is fifth in terms of solar power generation. With significant government support and rapidly increasing demand for clean energy sources, solar companies are consistently growing their credibility and power capacity. It encourages investors to look over the solar energy stocks in India to diversify their portfolios. 

The country aims to meet at least 50% of energy requirements with the help of renewable energy sources by the end of 2030. Several steps have been taken to achieve this mission, such as the  National Solar Mission, 100% FDI for solar energy, Project Development Cell, and the KUSUM scheme. It is essential to conduct research on the best solar stocks in India and this promising sector. And this piece of research would help you most. 

Solar Energy Sector in India: An Overview

Last year, the solar energy industry was valued at $10.4 billion, and analysts acclaimed that the industry will grow with a CAGR (Compound Annual Growth Rate) of 13.4% in the next 6 years. The country has witnessed a 30 times increase in clean energy capacity in the past few decades. 

Moreover, there is much more to expect in this promising sector, which will foster the growth of solar companies in India. Thus, having the best solar stocks in India in your portfolio could offer you balanced returns and high dividend income. You might be confused about the specific stocks to buy in 2025. But don’t worry. Univest has mentioned some of the high-potential solar power stocks that could prove to be a multibagger in the coming years. Keep scrolling to make your investment journey smoother and flexible.

Best Solar Energy Stocks List With Price

*Data is updated as of 3rd December 2024

Overview of Top Solar Energy Stocks

1. NTPC Ltd.

Founded: 1975

Headquarters: New Delhi

NTPC Ltd. is a government-owned company administered by the Ministry of Power. The company generates around 25 billion units of electricity every month. Moreover, NTPC operates 55 power stations and 11 solar projects with a Maharatna status. The impeccable domestic presence of this organisation with a total capacity of 72,304 MW, attract most investors’ interest. 

NTPC, one of the largest solar power stocks, has a market capitalisation of ₹3,64,000 crores and a PE (Price-to-Earnings) ratio of 16.22. The company is operating with a solar power capacity of 110 MW, and around 240 MW is under construction. 

2. Tata Power Company Ltd.

Founded: 1911

Headquarters: Mumbai, Maharashtra

Tata Power Company Ltd. has a rich legacy of being a leader in clean energy sources and became a member of the GIUNC (Global Intelligent Utility Network Coalition). The company is involved in power generation and distribution, using eco-friendly sources to foster India’s contribution to sustainability. 

Moreover, the company aims to achieve 25% of its production capacity from clean sources by the end of 2025. The market capitalisation of Tata Power is ₹1,38,000 crores, and its PE (Price-to-Earnings) ratio is 36.50, making it one of the best solar stocks in India to buy. 

3. JSW Energy Ltd. 

Founded: 1944

Headquarters: Mumbai, Maharashtra

JSW Energy Ltd. is a power generation company that transmits and trades electricity to meet the need for clean energy. To become a leader in the solar industry, it aims to establish a power generation capacity of 20 GW by the end of 2030. JSW Energy has signed a MoU (Memorandum of Understanding) with POSCO Group to expand the business. The market capitalisation of this one of the best solar energy stocks in India stands at ₹1,16,000 crores, and its PE (Price-to-Earnings) ratio is 56.39. 

4. Suzlon Energy Ltd. 

Founded: 1995

Headquarters: Pune, Maharashtra

Suzlon Energy Ltd. is an end-to-end solution provider for solar power projects. The company has leveraged its strong relations and advanced experience to excel in designing and developing solar projects. As of now, the company has an installed capacity of 340 MW and is poised to grow further in the upcoming decades. It is well-positioned to utilise the experience in generating power and procuring lands across the country. 

The market capitalisation of Suzlon, one of the best solar energy stocks in India, stands at ₹90,250 crores, and its PE (Price-to-Earnings) ratio is 92.59. In the past year, Suzlon offered 63.32% returns and built the wealth of various investors in the Indian stock market. 

5. KPI Green Energy Ltd. 

Founded: 2008

Headquarters: Surat, Gujarat

KPI Green Energy Ltd. is involved in power generation and supply through Solarism. Recently, in 2024, the company signed a PPA (Power Purchase Agreement) with GUVNL (Gujarat Urja Vikas Nigam Ltd.) to establish a Solar PV Project with a capacity of 200 MW. The company has served clients with state-of-the-art solutions for the past few decades. 

The market capitalisation of KPI Green Energy Ltd. stands at ₹10,300 crores, and its PE (Price-to-Earnings) ratio is 42.84, making it one of the best solar stocks in India. 

6. Zodiac Energy Ltd. 

Founded: 1992

Headquarters: Ahmedabad, Gujarat 

Zodiac Energy Ltd. is involved in the installation of solar plants for commercial and residential purposes. It is one of the leading clean energy solution providers in India focused on different segments such as solar PV, BIPV (Building Integrated Photovoltaic), and thermal applications. 

As of now, the company has a solar power capacity of 80 MW and is tendered in the PM KUSUM scheme of the government to foster growth in the solar energy sector in India. The market capitalisation of Zodiac Energy Ltd. is ₹738.49 crores, and its PE (Price-to-Earnings) ratio is 54.21. 

Solar Energy Stocks With PE Ratio

*Data is updated as of 3rd December 2024

How to Invest?

Explore the steps mentioned below to invest potentially in the best solar energy stocks in India. 

• Research top solar energy stocks in India and assess different parameters such as profit growth, cash flow position, and PE ratio. 
• Consult your financial advisor to know the potential of the solar industry in the coming years. 
• Select the fundamentally strong shares and place a buy order through your demat account to invest. 
• Execute the order and track your returns in the portfolio section to book profit on time. 

Note: Consider Univest, the best stock advisory platform for timely entry and exit recommendations! Download now to start with five free trades. 

To Conclude

Solar energy will make a robust contribution to the government’s aim of becoming net zero across all sectors by 2070. India has witnessed mass solar power generation with a capacity of about 748 GW. Thus, investing in the best solar stocks in India offers investors exposure to a rapidly growing industry that is extensively supported by government initiatives. The global transition to clean energy sources would benefit top solar companies in terms of sales and profit. Research on solar power stocks to identify the best investment options and generate your wealth in the Indian stock market. 

FAQs

1. What are solar power stocks?

Ans. Solar energy stocks in India are the shares of businesses that manufacture and install PV (Photovoltaic) systems. The main purpose of these organisations is to harness the sunlight for power generation in the country. Investors looking for a steady growth opportunity and long-term wealth generation can consider these stocks as robust options. 

2. What are the risks for top solar energy stocks in India?

Ans. The solar sector in India is projected to grow with a CAGR of 40%. Still, some risks might impact people’s investment decisions. These include supply chain disruptions, technological disruptions, insufficient cash flow position, economic slowdown, and political changes. Identify the risks and assess the mitigating strategy to minimise the impact of risks. 

3. Who should invest in solar stocks in India?

Ans. Those who are looking to generate wealth in the long term should consider investing in the best solar energy stocks in India. More than 748 GW capacity of India to generate power from the sun encourages investors to invest in such stocks. However, it is essential to research market sentiments and stocks to create a diversified investment portfolio. 

4. What are the best solar energy stocks in India?

Ans. Here is the list of the best solar power stocks in India to invest in 2025. 

*Data is updated as of 3rd December 2024