Last Updated on Apr 2, 2024 by Harshit Singh
Table of Contents
Best solar energy stocks in India
| Best Solar Stocks | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio (%) | 5Y Avg Return on Investment (%) | 1Y Return (%) |
| K.P. Energy Ltd | Renewable Energy | 2,518.88 | 377.70 | 57.38 | 17.23 | 584.65 |
| BF Utilities Ltd | Renewable Energy | 3,081.59 | 818.10 | 24.77 | 14.26 | 164.93 |
| Zodiac Energy Ltd | Renewable Energy Equipment & Services | 577.80 | 394.85 | 180.56 | 12.38 | 338.48 |
| KPI Green Energy Ltd | Renewable Energy | 9,640.09 | 1,599.15 | 87.92 | 11.18 | 461.83 |
| SJVN Ltd | Renewable Energy | 49,279.63 | 125.40 | 36.25 | 9.84 | 279.43 |
| KKV Agro Powers Limited | Renewable Energy | 68.03 | 1,200.00 | 57.16 | 8.78 | 27.66 |
| Orient Green Power Company Ltd | Renewable Energy | 1,922.22 | 19.60 | 58.98 | 7.84 | 131.37 |
| WAA Solar Ltd | Renewable Energy | 159.73 | 120.40 | 16.25 | 7.03 | 225.41 |
| Energy Development Company Ltd | Renewable Energy | 109.49 | 23.05 | 26.01 | 6.80 | 34.40 |
| NHPC Ltd | Renewable Energy | 90,907.56 | 90.50 | 23.37 | 6.46 | 124.57 |
Note: The data of best solar energy stocks in India is as of 2nd April 2024. The stocks are sorted according to their 5-yr Average Return on Investment.
- Sector > Renewable Energy, Renewable Energy Equipment & Services
- 5-Yr Average Return on Investment – Sorted from high to low
What are solar energy companies?
Companies in the solar energy sector manufacture and install devices to capture energy from the sun and convert it into electricity. Their primary focus is to switch from fossil fuels like natural gas and oils to renewable energy sources like the sun and wind. Definitely, this transition is not easy and can take time.
Click to read about Renewable Energy Stocks in India 2024
What is the future for solar energy companies?
Looking at the positive aspects not adversely affecting the ecosystem, several companies are stepping up into this sector. Even big companies like Tata Power (through Tata Power Solar) and Reliance Industries (through its subsidiary Reliance New Energy Solar Ltd) are in the game. By 2030, India wants to meet 50% of its electricity requirements through renewable energy sources. This is driving most companies into the solar energy sector.
Notably, during the Interim Budget 2024-25, improved budgetary allocation of ₹10,000 cr. towards solar power grid projects in FY2025 was announced. This number is a massive improvement of 110% from ₹4,757 cr. allocated in FY2024. Altogether, when India moves towards clean energy resources, the demand for companies in the sector may increase.
Challenges in the solar energy sector
As there are two sides to a coin, there are certain challenges associated with the companies in the solar energy sector.
- Availability of sunlight – The working of solar energy is dependent on the sun. In areas where the sunlight is limited, the reliability of the solar panels can be challenging. Though experts say that the energy can be stored in the batteries, the cost of the batteries is high, which can be another challenge in itself.
- Waste management – Currently, India does not have a solar disposal policy. Though solar cells have a life span of 25 yrs, the damaged cells need to be disposed. And we need proper guidelines to dispose of the waste generated by the solar industry.
- Space availability – Solar plants require a large space to set up. It can be challenging to fit the requirements in current development plans.
Conclusion
It is estimated that with the increase in climate concerns, the demand for renewable energy resources will also rise. As a result, the solar energy sector stocks in India have recorded triple-digit growth in the past year which corresponds to the government initiative towards green energy. Though the investment in the solar energy sector seems profitable, therefore it is important to check their financials and the scope of growth in the company and the sector before investing.
Whether it be for fundamental analysis, or simply for gauging at the market movement, utlising the potential of Tickertape Stock Screener can help you identify the best solar energy stocks in Nifty. With over 200+ filters, you can reflect on the stock’s past performance while evaluating the fundamentals, it can help you make a sound investment decision.
FAQs
1. What are solar energy stocks in India?
2. How to find stocks in the renewable energy sector?
– Login to Tickertape
– Visit the Stock Screener
– Search for ‘Renewable Energy’ and ‘Renewable Energy Equipment & Services’ under the ‘Sector’.
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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