Best Solar Stocks in India to Invest in 2024

In India, the solar energy sector is emerging as a major player in the campaign for cleaner and greener power solutions. For investors in 2024, solar stocks present a great opportunity amidst growing environmental concerns and increasing demand for renewable energy. The solar industry has an investment potential of Rs 2, 94,000 crores by 2030. India's solar energy market generated a revenue of USD 10.4 billion in 2023. The solar energy industry in India is expected to develop at a 13.4% CAGR between 2024 and 2030. By 2030, India's solar energy business will be worth USD 24.9 billion. In this blog, we will explore the best solar shares in India, discuss their key factors, how to invest in them and provide insights to help you make informed decisions while investing in them.

What are Solar Energy Stocks in India

Solar energy stocks in India are shares or investments in companies involved in the production, installation, or distribution of solar energy products and services. The solar energy sector in India has experienced significant growth and development, driven by factors such as increasing environmental awareness, government incentives, technological advancements, and declining costs of solar energy systems. Companies involved in solar energy stocks typically manufacture solar panels, inverters, and other components used in solar energy systems. They may also provide services such as installation, maintenance, and monitoring for both industrial and residential customers.

Investing in solar energy stocks offers several benefits, including supporting the transition to clean and sustainable energy sources, supporting environmental conservation efforts, and diversifying an investment portfolio. Overall, solar energy stocks in India provide an opportunity for investors to align their financial goals with environmental values and potentially benefit from the growth and expansion of the renewable energy sector.

Popular Indian Solar Stocks to Invest in 2024

Below is the table with the solar company share price list in India that is worth investing in 2024:

Disclaimer: This list of solar energy stocks contains data updated as of 21st June 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.
 

An Overview of the Best Solar Energy Stocks in India

The top solar energy stocks in India, including three top companies or solar penny stocks, are listed in the stock market. These companies are renowned for their innovative and sustainable practices.

Adani Green Energy Ltd

Adani Green Energy Limited was founded in 2015 and functions as a holding company for a number of companies that handle the group's renewable power generation business. Its main operations include the production of renewable energy and several auxiliary services.

• Company has delivered good profit growth of 36.1% CAGR over last 5 years
• Debtor days have improved from 95.1 to 53.1 days.
• Stock is trading at 37.8 times its book value
• Though the company is reporting repeated profits, it is not paying out dividend
•  Company has reported net profit after tax of Rs 265.00 Crore in latest quarter.

NHPC Ltd

The company's main business is producing and selling large amounts of power to other power utilities. Its additional activities include electricity trading, project management, construction contracts, and consulting assignment services.

• Company has been maintaining a healthy dividend payout of 50.7%
• Company's working capital requirements have reduced from 84.6 days to 29.8 days
• Company has reported net profit after tax of Rs 607.21 Crore in latest quarter.
• Its trailing twelve-months (TTM) price-to-earnings (P/E) ratio stands at 31.36. 
• Peers of NHPC include Adani Energy Solutions, JSW Energy, and NHPC. 

Suzlon Energy

Suzlon is one of the leading global renewable energy solutions providers. It is a vertically integrated WTG manufacturer. It also undertakes installation and O&M of all WTG sales. Operations include design development and manufacturing of all major components, including rotor blades, tubular towers, generators, control equipment, gears and nacelles.

• Company has reported net profit after tax of Rs 254.12 Crore in the latest quarter.
• Company has reduced debt.
• Company is almost debt free.
• Company has delivered good profit growth of 19.7% CAGR over last 5 years

SJVN

SJVN is engaged in the business of Electricity generation. The company is also engaged in the business of providing consultancy for hydro-power projects

• In its last quarter, the company reported a net profit of 130.16 Crores. 
• Peers of SJVN include NHPC, Torrent Power, and SJVN. SJVN maintains an 81.85% promoter holding and an 18.15% public holding.
• Company has been maintaining a healthy dividend payout of 65.4%
• Debtor days have improved from 48.3 to 23.6 days.

Jaiprakash Power Ventures

Incorporated in 1994, Jaiprakash Power Venture Limited operates in coal mining, sand mining, cement grinding, and production of thermal and hydroelectric electricity

• Stock is trading at 1.14 times its book value
• Company has delivered good profit growth of 39.8% CAGR over last 5 years

KPI Green Energy

Incorporated in 2008, KPI Green Energy Ltd is part of KP Group. They develop, build, own, manage, and maintain renewable power facilities (solar and wind solar hybrid power project) as an Independent Power Producer (IPP) and as a service provider to Captive Power Producers (CPPs) under the ‘Solarism’ brand.

• Company is expected to give good quarter
• Company has delivered good profit growth of 101% CAGR over last 5 years
• Company has a good return on equity (ROE) track record: 3 Years ROE 35.4%
• In its last quarter, the company reported a net profit of 43.04 Crores.
• Peers of KPI Green Energy include CESC, Jaiprakash Power Ventures, and KPI Green Energy itself, which has seen a 5.00% increase.

Azad Engineering

Founded in 1983, Azad Engineering Limited provides turbines and aerospace components to original equipment manufacturers (OEMs) in the oil and gas, aerospace, defence, and energy sectors.

• Company has reduced debt.
• Company is almost debt free.
• Stock is trading at 17.4 times its book value
• Though the company is reporting repeated profits, it is not paying out dividend
• Azad Engineering has shown significant growth of 123.31% over the year. 
• In its last quarter, the company reported a net profit of 16.80 Crores.

Orient Green Power 

Orient Green Power was founded in 2006. As an independent producer of renewable energy, Orient Green Power Company Limited is involved in the development, ownership, and management of a varied portfolio of wind energy power plants.

• Company has reduced debt.
• Company has delivered good profit growth of 21.5% CAGR over last 5 years
• Debtor days have improved from 154 to 110 days.
• Company's working capital requirements have reduced from 122 days to 68.1 days

Urja Global

Urja Global Ltd., an established developer and operator of renewable energy, was founded in 1992. The company instals, commissions, and maintains grid-connected and off-grid solar power plants. It also engages in decentralised solar applications and the trading of lead acid batteries and solar equipment. It has been authorised as a Channel Partner by the Indian government's Ministry of New and Renewable Energy (MNRE). 

• In its last quarter, the company reported a net profit of 0.94 Crores. 
• Peers of Urja Global include Gujarat Industries Power Company, Orient Green Power Company, and Urja Global itself. 
• Company has reduced debt.
• Company is almost debt free.
• Debtor days have improved from 171 to 124 days.
  
   

Why Invest in Solar Energy Stocks?

Investing in the top solar stocks in India is a wise move as the country's solar sector is on the rise. With 125 GW of solar capacity installed, India plans to reach 450 GW by 2030, potentially powering 90 crore homes by 2030. The growth of solar stocks in India is expected to increase the market by 3.5 times, making India the third-largest solar market globally after China and Europe. The abundance of sunlight in India and the potential for exporting solar energy contribute to the positive outlook for the solar sector stocks. 

The government is actively supporting the growth of the solar sector through incentives, subsidies, and policies aimed at boosting solar energy adoption. This presents an opportunity to capitalise on the growing demand for clean and renewable energy, with strong government support and favourable market conditions offering substantial growth and returns on investment.
 

How to Invest in Solar Energy Stocks via BlinkX?

Here's a step-by-step guide to investing in Solar Energy Stocks via BlinkX:

• Set Up a Brokerage Account: Create a brokerage account with BlinkX and get access to a variety of stocks, and research tools.
• Conduct Research: Conduct your research on various solar energy companies listed on the BlinkX app. You can evaluate their financial performance, market standing, growth prospects, and any recent developments or news. 
• Place your Orders: Once the stock has been selected, you can place order by using the BlinkX platform. You need to specify the number of shares you want in your portfolio and the desired buying price.
• Monitor Your Investments: Regularly check for updates about your solar energy stock investment as this could impact the companies or the solar energy sector as a whole.
• Explore Diversification: You can reduce risk by diversifying your investments across multiple stocks or other segments. 
   

Factors to Consider Before Investing in Solar Industries 

To make a wise investment in solar industry shares in India, consider factors such as the performance of these shares and the current status of top solar stocks. Here are some things to think about before investing in solar energy stocks in India:

1. The success of the solar industry: Government policies and incentives can significantly impact the success of solar industry shares, as they facilitate the growth of companies producing solar equipment and increase the value of solar company shares. 
2. Diversify investment: Diversifying your investments, including solar energy stocks, is crucial for a balanced financial picture. This helps to assess the impact of these investments on your overall portfolio.  
3. Government influence:  The global economy can significantly influence the solar industry, as the COVID-19 pandemic disrupted global supply chains, affecting the availability of materials for solar energy equipment and subsequently affecting the prices of solar energy stocks in India.
4. Affecting solar stock prices: The solar industry in India faces competition from traditional energy sources like coal, oil, and gas, which are still widely used, potentially impacting changes in solar energy stock prices.

To make an informed investment decision in solar energy stocks in India, it's crucial to conduct thorough research and carefully consider all factors before investing.
 

Conclusion
India's transition towards sustainable energy sources presents a lucrative opportunity for investors to invest in solar energy stocks. The country's abundant sunlight and favourable government policies make the solar sector a promising investment avenue. Supporting companies involved in solar energy production not only benefits investors financially but also contributes to India's clean energy goals and environmental sustainability. This aligns with both financial objectives and environmental values, making it a wise and impactful investment choice in the future. Experience the fastest online trading app, an Indian trading app with zero brokerage fees.