Solar Energy is the Future of Power Generation, as you don’t need to invest in heavy machinery and dig deep into the earth deep produce that, instead you just need to harness that light coming from the sun almost 300 days a year, if you live in India.
Anyway, if the Solar Sector booms and that is obvious then these are the companies that can play a major role-
- Adani Green
- NTPC
- Tata Power Company
- Suzlon
- JSW Energy
- KP Energy
- Adani Power
Also Look for – NHPC, and Sterling and Wilson
Note – The Stocks mentioned here are not recommendations. Know More
But before going into the details of the Solar Energy Stocks, You first need to know,
A Must Read:- Best Stock Market Books for Indian Markets, that will reveal some Deep Secrets of Our Indian Stock Market, along with that you will also learn some key Investing Tactics you won’t find elsewhere.
Why You Need to Invest in the Solar Energy Stocks?
The straight answer is – that it is the future of Power Generation and is projected to reach $230 billion by 2030 with an annual CAGR of 40% between 2024 and 2032.
It can be used in various forms such as – Electricity, Heating and Cooling, Ventilation, cooking, and so many other forms, as Natural resources like Coal, Crude Oil, and Natural Gases that are being extracted by digging deep into the ground will run out – so we need to find other sources for producing Energy that is cost-effective, long-lasting, and available till humanity – and that’s why we need solar energy.
So, the companies that are involved in the solar field in any way, whether they are making Solar panels, Setting up Power plants, Operations, Maintenance, or supplying Solar power to houses and offices are going to benefit from this and some of the top players included in Solar Energy are like Adani Power, NTPC, Adani Green, Tata Power, SJVN to a name few.
The government is also Supporting, Promoting, and Investing heavily in the Solar Energy Sector
Also, the Government of India is actively promoting Renewable Energy Production at a mass scale as it announced that it intends to achieve Net Zero Carbon Emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 20301.
According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the non-conventional energy space in India has become highly attractive for investors and received an FDI inflow of US$ 15.36 billion between April 2000 and September 2023. More than Rs. 5.2 lakh crore (US$ 70 billion) has been invested in India’s renewable energy sector since 2014.2
In Budget 2023-24, Green Growth was identified as one of the nodes in the SAPTARISHI (7 priorities) by the BJP Government.3
Here are some steps Taken by the Government to Promote Solar Energy in the Country –
- Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route.
- Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025.
- Setting up of Project Development Cell for attracting and facilitating investments,
- Launch of Green Term Ahead Market (GTAM) to facilitate the sale of Renewable Energy power including Solar power through exchanges.
- However, the government announced the Rooftop Solar Scheme or the PM Surya Ghar Muft Bijli Yojana, which aims to install solar panels in houses and achieve solar energy generation and usage in households.
- Initiatives like the Solar Park Scheme, designed to establish 50 Solar Parks of 500 MW also play a major role in the growing Solar Energy Sector.
(Source – mnre.gov.in)
How do Companies benefit from the Solar Revolution?
So, first of all, India has a great potential for generating solar energy, as I mentioned earlier, in India we get almost 300 days of sunlight every year, which is able to produce a tremendous amount of solar Energy, equivalent to 748 GWp as estimated by the National Institute of Solar Energy (NISE).
Currently, we have a solar energy capacity is 75.57 GW as of Feb 2024, which has increased by 30 times in the last 9 years.4 But that’s nothing (just 10%) if we compare it with the total estimated solar energy capacity of 748 GWp and as we approach the goal, we need companies to do these jobs and then these Solar Energy Stocks will benefit from this, as they are the current most dominant player in the Solar Energy Field in India.
Facts & Stats about the Solar Energy Industry in India
Now, First You need a Demat Account so that YOU can start Investing in Solar Stocks, for this, I have selected the Top 8 most preferred Brokers for 2024, go and read the article and open a Demat Account Now.
Or, You can Directly Open your Account in Zerodha, with minimum paperwork, which is also my Favourite, which I used for my Trading and Investment Purposes.
An Overview of the top Solar Energy Stocks one by one.
01. Adani Green Energy Ltd.
7.5/10
BSE: 541450
NSE: ADANIGREEN
About Adani Power –
Adani Green Energy is an India-based Renewable Energy company, that came under the Indian Conglomerate Adani Group, headquarters in Ahmedabad India. It is the World’s Leading Renewable Energy Player and India’s Largest with operations in Australia, Singapore, Vietnam, the US, etc. Adani Green Energy develops, builds, Owns, Operates, and maintains Solar, Wind, and Hybrid Power Plants connected to the Utility Grid.
| Market Cap (in Cr) | 3,01,362 Cr |
| PE Ratio | 206.79 |
| ROE | 18.40% |
| Dividend Yield | 0.00% |
Key Points to Note: Adani Green Energy develops, owns, Operates, and Manages Renewable Energy plants, including solar, Wind, and Hybrid Power Plants. It is India’s Largest and the World’s leading renewable energy solutions partner.
They have created such a huge impact with their Renewable projects, as they have operational 10,934 MW of Renewable Energy projects and 11,019 MW of projects under construction including Solar, Wind, and Hybrid Plants – from which the major portion came under solar projects. (Source)
Also, they have one of the world’s largest Single Location Solar Power Projects of 648MW at Kamuthi, Tamil Nadu.
Their plan is also looking Ambitious, as they aim to develop 45GW of Renewable Energy Capacity by 2030 at Khavda, Gujarat.
How the Stock is Doing: The stock is doing well, but after the Hindenberg research in 2022, almost all of the Adani Stock Fell drastically including Adani Green Energy, but this stock has rallied more than 300% in 15 months from the low of Rs.440 to Rs.1806 per share till today.
02. NTPC Ltd.
8.5/10
BSE: 532555
NSE: NTPC
About the Company-
NTPC is India’s largest integrated power Company, accountable for 1/4th of the country’s Power with a total installed capacity of 75,958 MW. It generates power from almost every sector with operations in Wind, Thermal, Hydro, Solar, Coal, and Gas. It is a public sector company working under the Ministry of Power, under the Government of India aiming to become a 130 GW firm by 2032.
| Market Cap (in Cr) | 3,36,377 Cr |
| PE Ratio | 17.25 |
| ROE | 12.45 |
| Dividend Yield | 2.09% |
Key Points to Note: As mentioned above, NTPC is India’s largest integrated power company came under the Ministry of Power, Government of India.
The present installed capacity of NTPC Group is 75,958 MW, comprising 51 NTPC-owned stations (27 coal-based, 7 gas-based, 1 hydro, 1 small hydro, and 15 solar PV) and 42 Joint Venture/Subsidiary stations (9 coal-based, 4 gas-based, 8 hydro, 1 small hydro, 16 solar PV and 4 wind). By 2032, NTPC is aiming to Produce 50 percent of its Power from Renewable Energy Sources. (Source)
How the Stock is Doing: Number 2nd PSU Company in Nift 50, NTPC Stocks is growing at a massive speed as it is up by more than 100% in a year and almost 250% in 3 years fueled by Government immense focus on Renewable Energy Sector.
Its Profit is Rising on a Y-O-Y basis but sales in q3FY24 have declined compared to the Previous Year, same quarter. But this is a short-term fluctuation and will be overwritten soon with increasing Revenue.
03. Tata Power Company
8.2/10
BSE: 500400
NSE: TATAPOWER
About the Company-
Tata Power is an Electric Utility and Electric Generation Company based in Mumbai that came under the Giant, Tata Group. It has operations in India, and 7 other countries across the globe including Singapore, Georgia, Indonesia, South Africa, Zambia, Mauritius, and Bhutan. It is the first Indian company to ship out 1 GW Solar Modules worldwide5.
| Market Cap (in Cr) | 1,37,208 Cr |
| PE Ratio | 38.34 |
| ROE | 11.85 |
| Dividend Yield | 0.47% |
Key Points to Note: Not only Renewable Energy production, but Tata Power also presents an entire chain of renewable energy sources and solutions including Solar batteries, vehicles, rooftops, EV charging stations, home automation, and many more.
Tata Power, together with its subsidiaries & joint entities, has 12772 MW of generation capacity where 30% comes from clean and green sources.
Most importantly, Tata Power is not only in the race for EV or power-saving services but it is currently India’s number 1 Solar Rooftop Provider.
They are currently generating 30% of energy from clean and renewable sources which they aim to increase to 40 – 50% in the next few years.
Currently, Tata Power has a 3,927MW installed capacity for Renewable Energy Generation, 10,183MW installed capacity for Conventional Energy Generation, more than 3700+ EV charging points across 351 cities and towns, and many more such great works in their portfolio. (Source)
How the Stock is Doing: The stock of Tata Power Company has given a humongous 120% return in FY23-24, and more than 350% return in the last 3 years. Currently, the Stock is in an Uptrend, and the company continuously sees growth in its profit and revenue.
04. Suzlon Energy
7.0/10
BSE: 532667
NSE: SUZLON
About the Company-
Suzlon Energy is one of the leading Renewable Energy Solution Providers, especially in Wind Power but it has also expanded in Solar Power projecting a bright future for Solar Power Generation. Mainly it operates in Wind Energy from Designing to Maintaining the wind turbines.
| Market Cap (in Cr) | 56,404 Cr |
| PE Ratio | 81.96 |
| ROE | 9.95 |
| Dividend Yield | 0.00% |
Key Points to Note: A great story of Suzlon has been written in the past, but as of now, Suzlon has become more than 800 times richer than in the year 2020.
It focuses mainly on Wind Energy but now they are also entering in Solar Energy Sector where it can offer Wind-Solar hybrid solutions it has somehow an upper hand in this because it is present in more than 17 countries across six continents where it has installed more than 20.5GW of Wind Energy.
In India, Suzlon is a market leader with 111+ wind farms and an installed capacity of over 14,490 MW. (Source)
How the Stock is Doing: This company stock is trying to get out of the Sea to get some Sunlight, as their stock has slumped more than 95% after the 2008 Lehman Brother crisis, but in the last 3 years, Suzlon Stock Price has risen almost 1000% from Rs.4 to Rs.41 per share, mainly because of change in their management, and also the profits are turning into green from last 3 years.
05. JSW Energy Ltd.
8.0/10
BSE: 533148
NSE: JSWENERGY
About the Company-
A Part of JSW Group, this company is one of the largest Private sector companies for Power Generating in India. Not only Generation, JSW Energy also transmits and trades electricity and provides Power Plant Construction, Operation, and Maintenance Services.
| Market Cap (in Cr) | 1,07,732 Cr |
| PE Ratio | 65.57 |
| ROE | 8.01 |
| Dividend Yield | 0.30% |
Key Points to Note: JSW Energy is a leading private-sector power-producing company that generates 6,677MW of energy mainly from Thermal Power and it seems that Solar is somewhere left behind as only 10% of power generation comes from Solar Energy.
However, the company is continuously spending on Solar projects where in recent years the company has commenced operations at the 225 MW Solar Project in Vijayanagar, Karnataka.
JSW Energy has set the target for a 50% reduction in its carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy.
Also, The Company has set a target to reach 20 GW capacity by 2030, with the share of renewable energy increasing to 85% of the total. (Source)
How the Stock is Doing: At present the stock is doing great where it giving its investor a return of more than 130% in FY23-24 and more than 450% returns in the last 3 years.
But Something is concerning, as the company’s sales are down by almost 22% in q3 of FY24 and expenses are rising compared to q2FY24. Also, Profits have declined in q3FY24 compared to q2FY24.
But this is not a major concern as the renewable energy market is Growing and this type of fluctuation in a growing market is common as new players are entering the segment but overall this company may perform well in the long run.
06. Gensol Engineering
6.8/10
BSE: 542851
NSE: GENSOL
About the Company-
Gensol Engineering Ltd. is an engineering company that provides services especially Advisory Services for Solar Projects to Developers, Institutions, Government Bodies, and Solar EPC Companies, not only in India but across the Globe.
| Market Cap (in Cr) | 3,697 Cr |
| PE Ratio | 87.62 |
| ROE | 9.43 |
| Dividend Yield | 0.00% |
Key Points to Note: Gensol Engineering provides services like Engineering, EPC construction, and Solar Advisory in which they offer Technical Due Diligence, Detailed Engineering, Consulting, and Construction Supervision for Solar Projects across India.
For Instance, Gensol is currently working with Greenko Energy which is a major player in Solar Energy Greenko appointed Gensol for Due Diligence at the time of Project Acquisition, Detailed Engineering, and Project Management.
Gensol is also in Partnership with KP Energy where it has filtered Gensol as a long-term EPC partner for executing a battery of their solar power projects. It has recently installed a 12.4 MWp ground-mounted solar PV plant over a 37-acre patch of land in Ranada, Gujarat.
Gensol has partnered with various leading players to provide Solar Advisory Services including, Suzlon, Adani Group, Geenko, and SBI.
They have a presence in 18 states all over India and currently have ongoing projects in various other countries across Africa, the Middle East, and South East Asia.
How the Stock is Doing: Gensol was listed in the Indian Stock Exchange on July 2023 and now it has performed very well where it has seen an almost 100% rise in Stock Price since listing.
Looking at the financials, then Gensol is looking good at its work as its Revenue and Profit are consistently rising on a Q-O-Q basis, where the company’s compounded sales growth for the last 3 years is at 69% and compounded profit growth for 3 years is at 132%, but increasing Public Shareholding, and decreasing Institutions shareholding may be a concern.
07. Adani Power
7.8/10
BSE: 533096
NSE: ADANIPOWER
About the Company-
Adani Power is Inida’s largest Thermal Power Producer (15,250 MW) in India, along with this it has also spread its business in Solar Power (40 MW) with Nine Power Plants across India including Gujrat, Maharastra, Rajasthan, Karnataka, Chhattisgarh, Madhya Pradesh, and Jharkhand.
| Market Cap (in Cr) | 2,32,361 Cr |
| PE Ratio | 9.96 |
| ROE | 50.86 |
| Dividend Yield | 0.00% |
Key Points to Note: Came Under India’s Multinational Conglomerate Adani Group, Adani Green Energy is India’s largest Thermal Power Producer in the country with an installed capacity of 15,250 MW, but it has also spread its business in the Solar Sector in 2013 as currently, it has 40MW of solar plants and more under Development.
How the Stock is Doing: Among all the major Adani Stocks, Adani Power is one that has not so much impact of the Hindenberg research report after Adani Ports, as the stock is continuously growing and given an attractive 180% in FY23-24, and almost 1200% return from the April 2019.
Looking at the financials, then the company’s Revenue is stable or a little rising on a Q-O-Q basis but profit has been declining from the last 3 quarters, which is a major concern.
Some Other Solar Stocks you can look after,
NHPC: This is a government-owned company founded in 1975, NHPC is India’s largest Hydro Power generator with more than 15% share of the total Hydro-power capacity of the country which is 7097MW. Along with Hydro, NHPC also generates power using Wind and Solar Energy which is only 2% of the total energy produced by NHPC including all sources.
Sterling and Wilson: Sterling and Wilson Renewable Energy Limited (SWREL) is a multinational company that provides engineering, procurement, and construction (EPC) services for renewable energy projects. They provide Utility-scale solar power projects, Floating solar projects, Hybrid energy projects, Energy storage solutions, and Operations and maintenance services for third-party solar projects.
References –
- India intends to achieve Net Zero Carbon Emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030. Source – IBEF ↩︎
- Renewable Energy Investments and Developments. Source – IBEF ↩︎
- In Budget 2023-24, Green Growth was identified as one of the nodes in the SAPTARISHI (7 priorities). Source – IBEF ↩︎
- India’s Installed solar power capacity has increased by 30 times in the last 9 years as of Feb 2024. Data by Invest India ↩︎
- 1st Indian Company to ship out 1GW solar modules. Source ↩︎
