Best Green Energy Stocks in India

  • 18 Apr 2024
  • Read 14 mins read

Green energy refers to renewable energy sources that emit minimal pollution. Even though they are frequently used interchangeably, not all forms of energy are fully environmentally friendly. While burning wood is renewable but not completely green owing to air pollution, solar power is a green and renewable energy source. The energy industry in India is a major driver of economic expansion and draws capital from the stock market. This article provides an overview of energy stocks in India. In this article, we'll explore everything about green energy stocks, including what they mean and green energy stocks list, and discuss why investing in them is smart for both financial and environmental reasons.

What are Green Energy Stocks?

Green energy stocks are businesses that create low- to no-pollution alternative technologies using renewable resources. The most common sources of green energy are heat, wind, and sunshine. Low-impact hydropower sources and some types of biomass can also be included. Green energy firms strive to employ these resources to produce zero carbon emissions while using less fossil fuels.


Best Green Energy Stocks in India (2024)

Here is the green energy penny stocks list for your consideration: 

Stock NameMarket Cap1 Year Return (%)5 Year Average  Return on Investment (%)
KP Energy Ltd₹ 2,347 Cr.483.55913.43 
NTPC Ltd₹ 3,55,528 Cr.103.821.7
Adani Green Energy Ltd₹ 3,00,760.25 Cr.103120
Websol Energy System Ltd₹ 2,266 Cr.594.683.7
Zodiac Energy Ltd₹ 610.14 Cr.226.3112.4

Note: As of April 10, 2024, the market capitalization, one-year return, and five-year average return on investment shown above are correct. However, you should do extensive research before making any selections about these stocks.

Summary of the Leading Green Energy Stocks:

A summary of the leading green energy stocks is provided below:

  1. KP Energy Ltd

    KP Energy Ltd. is an Indian small-cap green energy company that builds windmill infrastructure to generate geothermal energy. With a growth rate of 459% over the past year, this green energy company has performed the best out of all the Indian green energy stocks. Furthermore, the company's market share increased from 0.3% to 1.31% in the preceding five years.
  2. NTPC Ltd

    Established in 1975 to expedite the growth of power in India, this large-cap green energy firm produces electricity and sells vast amounts of it to state power companies. This green energy company's market share has grown from 63.03% to 65.96% in the previous five years.
  3. Adani Green Energy Ltd

    With a market valuation of Rs. 2,64,446.30 cr, Adani Green Energy Ltd., one of India's biggest renewable energy firms, was founded in 2015. In India, this renewable energy firm constructs and manages wind and solar power projects. This renewable energy company's market share has increased from 7.69% to 25.7% over the past five years.
  4. Websol Energy System Ltd

    This India-based small-cap renewable energy startup makes photovoltaic monocrystalline solar modules and cells.
  5. Zodiac Energy Ltd

    Zodiac Energy was established in 1992 and has a wealth of knowledge in the renewable energy industry. It offers EPC services, wind power project development, and solar power system design. The firm has demonstrated good revenue growth of 26.39% and a strong promoter holding of 72.86%.

Why Invest in Stocks of Green Energy?

Investors who purchase green energy stocks have several benefits. First, they can back eco-friendly businesses and potentially earn lucrative profits. In addition, the demand for green energy supplies is anticipated to rise at a variable rate as governments worldwide enact laws and incentives to support renewable energy.

Green Energy vs Renewable Energy

Here is a table showing the difference between Green Energy vs Renewable Energy :

ElementsGreen EnergyRenewable Energy
MeaningThe energy generated from environmentally friendly sources such as solar, wind, hydroelectric, etc. The energy is produced from naturally renewable sources like wind, hydro, biomass, geothermal, etc.
Impact on EnvironmentNo impact on the environment is caused. The impact varies depending on the source used during the process. 
DurabilityThe main focus is on reducing ecological footprint and promoting sustainability.The main focus here is to use naturally replenishable resources.
Application This energy is applied to renewable energy sources that don't harm the environment.This energy is used as a catch-all for all the energy sources that replenish themselves organically.

Features of Green Energy Stocks in India - H2 listicles

Here are the features of Green Energy Stocks in India:

  1. Strong Growth Prospects:

    Green energy stocks offer great growth opportunities because of the increasing demand for clean energy solutions. As governments and industries worldwide shift towards sustainable practices, green energy companies should be ready for expansion and profitability.
  2. Positive Environmental Impact:

    Green energy stocks contribute to a positive environmental impact by decreasing carbon emissions and being dependent on fossil fuels.
    Investors may contribute to preserving climate change and natural resources for future generations by purchasing these stocks.
  3. Technological Innovation:

    These businesses are at the forefront of technical innovation in the energy sector. Sustainable energy enterprises are consistently innovating and implementing state-of-the-art technology to enhance the efficacy and efficiency of renewable energy production, distribution, and storage.
  4. Adaptability to Economic Volatility:

    Even when the economy is unstable, green energy companies can stay strong. This happens because most of the people these days are choosing cleaner energy options. As a result, companies that make green energy in India can see consistent demand for their products and services.

How to Invest in the Top Green Energy Stocks in India?

Before investing in the top green energy stocks in India follow these steps:

  1. It is important to research the sector to understand green energy penny stocks and know the market trends, key players, and regulatory updates. 
  2. Diversify your investment across various green energy sources like wind, solar, hydro, and geo. 
  3. Look into a company’s dedication to sustainability and check its carbon footprint, renewable energy investments, and environmental impact.
  4. Check the financial condition of the company, and review its balance sheet, revenue growth, and profitability.
  5. Stay updated by checking the market trends on the internet. 
  6. For investment purposes, use a trusted brokerage firm and regularly review your portfolio. 

Types of Green Energy Stocks

There are many different types of green energy stocks in India, here is a small list of these stocks: 

  1. Solar Energy Stocks India:

    They are solar energy stocks, which include renewable energy companies in India. They majorly deal in manufacturing solar panels and provide installation services for residential, commercial, and utility-scale solar power projects.
  2. Clean Energy Stocks:

    Clean energy stocks are companies that generate and distribute renewable energy from sources such as solar, wind, hydropower, geothermal energy, and bioenergy.
  3. Hydroelectric Power Stocks:

    These companies generate electricity by using the force of flowing water, typically from rivers or dams. They benefit from the renewable nature of water as an energy source.
  4. Biomass Energy Stocks:

    Biomass Energy Stocks convert organic materials like wood, agricultural residues, or municipal solid waste into energy.
  5. Stocks of Geothermal Energy:

    These companies use the heat produced beneath the surface of the Earth to create power or heat buildings.

Factors to Consider Before Investing in Green Energy Stocks

There are the factors to consider before investing in green energy stocks:

  1. Government Policies and Regulations:

    For green energy stocks one needs to evaluate the current and future regulatory landscape as government incentives, subsidies, and regulations can significantly impact the profitability and growth potential of green energy companies.
  2. Market Demand and Growth Potential:

    Evaluate the demand for green energy solutions both domestically and globally, and look for trends indicating increasing adoption of renewable energy sources and technologies. Consider the growth prospects for specific segments within the green energy sector, such as solar, wind, or electric vehicles.
  3. Financial Health of Companies:

    Analyse the financial performance and stability of green energy companies and look for companies with strong balance sheets, positive cash flows, and manageable debt levels.
  4. Technological Innovation and Competitive Advantage:

    Consider the technological innovation and competitive positioning of green energy companies and look for companies with proprietary technology, patents, or a competitive edge in their respective markets.

How is Investing in Clean Energy Stocks in India Beneficial?

Investing in clean energy stocks in India can be beneficial because it provides both sustainability and financial growth. Here are the reasons: 

  1. Sustainability:

    Clean energy sources are renewable and sustainable, as the world is shifting towards eco-friendly alternatives, the demand for clean energy stocks, especially wind energy stocks, is expected to rise.
  2. Growing Industry:

    The clean energy sector is growing rapidly and by investing in them one can receive returns as demand rises.
  3. Carbon Emission Reduction:

    Clean energy helps to reduce the negative effects of climate change by providing carbon emission reduction. One can take an active role in creating a healthy environment for future generations.
  4. Job Creation:

    With the expansion of the clean energy sector, many employment opportunities are created in India. Investing in these stocks drives economic growth, job creation, and prosperity.

Government Support: The government of India also supports and encourages the use of sustainable energy by providing subsidies and laws. The clean energy sector benefits from this support, which also increases the appeal of buying green energy stocks.

Who Should Invest in Clean & the Top Renewable Energy Stocks in India?

Investing in clean and top renewable energy stocks in India is suitable for individuals who are passionate about environmental protection, sustainability, and reducing carbon emissions. Investing in green energy penny stocks in India offers investors an opportunity to support companies that prioritise eco-friendly practices and green technology. If you want to contribute to a safe future, then investing in these stocks can be beneficial. 

In the Indian market, the demand for green energy stocks is continuously growing, providing profitable investment opportunities. By investing in the best green energy stocks in India, investors not only potentially earn attractive returns but also contribute to a cleaner and greener future. You can embrace the power of green energy stocks today for a brighter tomorrow by investing in a Stock Market App

Disclaimer: The stocks mentioned above are based on current market trends and can fluctuate in value. Before investing in any of these stocks, it is important to conduct thorough research or consult with a financial analyst. Investors are advised to exercise caution and diligence when making investment choices.

FAQs for Green Energy Stocks

One can invest in the stocks through different methods like online trading platforms, or by setting a brokerage account with a reliable Indian stockbroker.

Instead of focusing on market timing, your investment timing should take your risk tolerance and financial goals into account. 

Yes, as green energy stocks support social and environmental goals, they are seen as sustainable investment opportunities. 

Investors who have a long-term investment horizon can consider green energy stocks. However, it is important to consider the investment goals and risk tolerance before investing.

Before investing in green energy stocks consider checking the company fundamentals, regulatory environment, market trends, and your risk tolerance.