Solar Penny Stocks in India 2025

Solar penny stocks represent the shares of companies engaged in harnessing the power of the sun to fill the need for electricity. These stocks are generally low-priced and have a small market capitalisation. Besides numerous risks, solar energy penny stocks often provide investors with high returns and dividend yield in the long run. We suggest you not wholly rely on them; just consider them as your small investment and a risk to generate wealth from solar industry investment. 

The best solar penny stocks in India in 2025 include Suzlon Energy Ltd., NHPC Ltd., Reliance Power Ltd., Indowind Energy Ltd., and Surana Solar Ltd. Invest in these best small-cap solar companies or solar penny stocks in India to generate exemplary returns in the long-run.

Solar Energy Sector in India: An Overview

The solar energy industry in India is crucial in meeting the domestic and international demand for clean energy sources. Currently, the country generates around 748 GW of solar power. However, the aim is to fill around 50% of energy requirements with the help of renewable energy by 2030. Like big players in the industry, small solar solar penny stocks also contributed to the 30 times increase in clean energy capacity.

With reference to the goal of producing 500 GW of renewable energy, 5 million tons of green hydrogen annually by 2030, and starting new bidding rounds for oil and gas assets, the prime minister Narendra Modi said “there are possibilities of new investments and I hope that you explore all possibilities in India”. 

Moreover, the high growth potential of this promising sector attracts most investors to consider investing in solar penny stocks. However, a few people still need clarification on which penny stocks to buy in 2025. This piece of research includes some fundamentally strong solar penny stocks and their overview to enhance your understanding. Scroll down to  learn more about the aspects related to the best solar energy penny stocks.

Factors to Consider For Solar Penny Stocks

Investing in solar energy penny stocks in India requires key factors to be considered. These factors will help you avoid significant losses in the Indian stock market. Explore the factors in the below section before investing in solar penny stocks. 

• Resilient Business Model

Know about the business model to identify the best solar penny stocks in India. Choose the solar firms that operate under long-term PPAs (Power Purchase Agreements). A resilient business model comes with growth plans, making penny stock an attractive investment option. 

• Government Support

Identify solar penny stocks backed by the government. Higher support of government schemes or initiatives might influence the popularity and financial position of the company in the long run. It makes government support a key factor to consider when investing in the best solar penny stocks with low prices. 

• Management Quality

Skilled and experienced members of the company’s management might contribute to the company’s excessive growth. Analyse the quality of management, plans, decisions, and policies to grow in the coming decades. It could help you invest in the best solar energy penny stocks in 2025. 

• Regulatory Environment

Stay informed about the rules and regulations imposed by the legal authorities for the smooth functioning of the business firm. Check whether the selected solar energy penny stocks are complying with these regulations or not. Avoid solar penny stocks suffer legal penalties to safeguard your investment portfolio with significant losses in the Indian stock market. 

• Financial Health

Assess the company’s financial health by its revenue growth, profit margins, debt level, and more. Select the solar energy penny stocks with robust financial performance and positive cash flow position. The financially healthy organisation tends to deliver multibagger returns in the coming decades. 

• Technical Indicators

When researching the best solar penny stocks to buy in 2025, consider technical parameters such as PE ratio, PB ratio, Earnings Per Share, Dividend Yield, Book Value, etc. These indicators might help you choose the top solar penny stocks with low prices in India.  

Also Read: Green Energy Penny Stocks

List of Solar Penny Stocks in India

Disclaimer: It is to be noted that solar energy penny stocks mentioned in the above table are for educational purposes only. Research or consult a financial advisor before investing in any of these stocks. You can also check for real-time insights or expert verdicts on these solar penny stocks from the Univest app.

Overview of  Solar Energy Penny Stocks in India

1. Suzlon Energy Ltd. 

Founded: 1995

Headquarters: Pune, Maharashtra 

Market Capitalisation: ₹90,250 crores

Suzlon Energy Ltd. has become popular recently. The company has a power generation capacity of 340 MW. It has leveraged its strong relations to offer impressive designing and development services to different solar power projects. Suzlon Energy operates 14 manufacturing units to make clean energy affordable for customers. As the company is focusing on rapid growth and debt reduction methods, we can expect significant growth in its market share in the coming years. Experts are acclaiming that this one of the top solar energy penny stocks in India could provide high returns by 2027. 

2. NHPC Ltd. 

Founded: 1975

Headquarters: Faridabad, Haryana 

Market Capitalisation: ₹83,930 crores

NHPC Ltd. is a government-owned enterprise that generates power through water, wind, solar, and geothermal energy. The GOI (Government of India) holds a 70.95% stake in this organisation. Since 1975, this company has shown impressive growth potential and provided investors with higher returns and dividend payouts. NHPC is one of the best solar energy penny stocks in India, offering investors exposure to the rapidly growing solar industry of India. It has around three solar power projects, and the number is expected to increase soon.

In 2024, the company claimed to receive a 1.2 GW solar project connected to ISTS (Inter-State Transmission Systems). It gathered the interest of investors to trade in this one of the top solar penny stocks in India. 

Note: NHPC Ltd. has partnered with Tata Power Company Ltd. to install rooftop solar projects nationwide. 

3. Reliance Power Ltd. 

Founded: 1995    

Headquarters: Mumbai, Maharashtra  

Market Capitalisation: ₹15,460 crores

Reliance Power Ltd. was established to develop and handle different types of power projects in the country. However, the company has created a diversified portfolio of more than 6,000 MW of power generation capacity. Despite this effective capacity, the company also has various projects under development to expand further. This, one of the best solar penny stocks in India, increased by 96.60% in the past year and provided investors with impressive returns on their investments. 

4. Orient Green Power Company Ltd. 

Founded: 2006

Headquarters: Chennai, Tamil Nadu

Market Capitalisation: ₹2,080 crores

Orient Green Power Company Ltd. is one of the solar energy penny stocks trading at ₹17.88 but has a capacity of 402.3 MW to generate electricity. With a diversified portfolio of renewable energy power plants, it has high growth potential and could prove to be a multibagger in the coming years. The vision of this one of the solar penny stocks in India is to increase its portfolio of clean energy projects. For this, the company focuses on sustainable development in India. Orient Green is constantly trying to expand its operations in the global solar industry to improve profitability. 

5. Indowind Energy Ltd. 

Founded: 1995

Headquarters: Chennai, Tamil Nadu

Market Capitalisation: ₹301.65 crores

Indowind Energy Ltd. is committed to developing wind farms and generating green power to meet clean energy requirements. The company wants to emerge as a sustainable organisation for clean energy generation using renewable sources. The increasing trend of 712.42% over the past five years gathered the interest of potential investors looking for the best penny stocks to buy. You can consider this one of the best solar penny stocks in India as an option to take risks for higher returns in the coming years. 

6. Surana Solar Ltd. 

Founded: 2006 

Headquarters: Secunderabad, Telangana

Market Capitalisation: ₹240.47 crores

Surana Solar Ltd. manufactures SPV (Solar Photovoltaic) modules with 4 different grid-connected solar plants in Gujarat and Telangana. These power plants have a power generation capacity of 5 MW each. This is one of the top solar energy penny stocks in India, which offered investors 90.91% returns in the past year. However, Surana Solar Ltd., one of the solar energy penny stocks, is trading at 4.55 times its book value, and decreased promoter holdings by 3.79% could be the points of concern. Conduct deep research on Surana Solar Ltd., one of the best solar penny stocks, before investing in it.      

Also Read: Top Solar Energy Stocks in India to Invest

Solar Penny Stocks With PE Ratio

Here are some of the best solar penny stocks in India with their PE (Price-to-Earnings) ratio. 

Dividend Yield in Solar Penny Stocks

Benefits of Solar Penny Stocks in India

Besides capital appreciation, solar energy penny stocks in India offer investors many other benefits. These include.

1. Low Cost Investment

Solar penny stocks or also known as green energy penny stocks come with a low price, typically below Rs 50 or Rs 100. It makes these stocks an accessible investment option for small investors. With these low-cost investments, investors can diversify their portfolios to generate balanced returns. 

2. Multibagger Returns

Undoubtedly, solar penny stocks are speculative in 2025. However, they also tend to deliver multibagger returns in the future. Low prices of solar energy penny stocks provide an early entry point to investors. They can invest a minimal amount to wait for a longer duration in these solar penny stocks. 

3. Short-Term Movements

Solar penny stocks in India might offer short-term price movements because of sectoral trends, financial reports, and other events. One can benefit from these short-term price movements to generate additional returns. Do check for the liquidity and volumes before investing in solar energy penny stocks in India to avoid risks. 

4. Early Entry

Equities of small solar companies in India trade at low prices and with low market capitalisation. Thus, it is easy to take advantage of early entry in the shares. One can hold solar penny stocks in India from the lowest price for the long term. 

Risks for Solar Penny Stocks 

Identify and assess the risks of investing in solar penny stocks to safeguard your investment portfolio from uncertain consequences. Explore the risks below and find mitigation strategies before investing in solar penny stocks at low prices. 

• Global Economic Situation

Any disruption in global events like demand/supply chain, logistic channels, etc, might impact the overall performance of solar energy companies in India. It may significantly affect the best solar penny stocks in India.  

• Availability of Giant Competitors

The solar energy sector in India includes big and small players. The availability of giant competitors might be a hurdle for solar energy penny stocks in India. Big firms may also create a challenging situation for small companies in the solar energy sector to sustain a competitive financial position in the market. 

Other Solar Penny Stocks to Consider

Disclaimer: It is to be noted that solar energy penny stocks mentioned in the above table are for educational purposes only. Research or consult a financial advisor before investing in any of these stocks. You can also check for real-time insights or expert verdicts on these stocks from the Univest app.

Also Read: Solar Penny Stocks in India 2025

How to Invest in Solar Energy Penny Stocks?

Buying solar penny stocks could be risky. They can suffer from market volatility and an ineffective cash flow position. Research the best solar energy stocks in India to make a diversified investment portfolio. Consider parameters like net profit growth, EPS (Earning Per Share), PE (Price-to-Earnings) ratio, and more to choose the best solar penny stocks. You can also consult financial advisors to explore fundamentally strong solar energy penny stocks or low-priced solar stocks.

Open a Univest Demat Account and place an order to invest. Place an order through your demat account and execute it to invest. In the portfolio section, you can now track your returns or stocks’ performance. Wait for the right time to book profit so you don’t lose the capital invested. 

Let’s Wrap on Solar Energy Penny Stocks

Investing in solar penny stocks in India is considered a highly speculative investment. These equities generally come with a limited shareholder base and lack of liquidity. But, they could also prove to be a multibagger sometimes. Thus, investment in solar penny stocks might increase your chances of high returns and wealth generation. On the other hand, investors should assess the financial health, cash flow, and EPS of the stocks before investing in them. Researching the best solar energy stocks in India is essential to create a diversified portfolio. Moreover, you can also consider Univest, the prominent stock advisor of Indian stocks, to make your investment journey with solar penny stocks more convenient. 

Note: Conduct your own research to avoid the stock market risk when investing in solar penny stocks.

FAQs

1. What are solar penny stocks?

Ans. Solar Energy Penny Stocks are the low-priced equities of the companies involved in power generation and distribution by harnessing the sunlight. Lack of liquidity might be a risk for the investors considering these stocks. Still, they can also prove to be the multibagger stocks in the coming years. Investment in solar penny stocks in India is considered a speculative investment, and one should be aware of its pros and cons before investing in it. 

2. Are solar penny stocks risky?

Ans. Investment in the best solar energy penny stocks in India could be speculative. They comes with very high risk and a chance to become multibagger stocks. You can add small quantities of penny stocks to your portfolio so as not to lose a big part of your capital. If you are an investor who believes in high-risk, high-reward play, you can consider solar penny stocks in India as they are operating in a sector with high growth potential. 

3. What are the best solar penny stocks?

Ans. Here are some of the best solar penny stocks in India, which have low prices and small market capitalisation. 

4. How fast can solar penny stocks grow?

Ans. It totally depends on the market sentiments and volatility. With positive trends and flow, solar penny stocks can show a rally to investors and may double or triple their capital investment. However, a small economic fall might incur severe drops in the prices of solar energy penny stocks in India. It is essential to conduct research to invest safely in these penny stocks in renewable energy sector.  

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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.