Last Updated on Oct 28, 2024 by Aishika Banerjee
India’s solar energy sector is booming, reflecting the nation’s ambitious renewable energy targets. By 2030, India aims to achieve 500 GW of renewable energy capacity, with solar power playing a critical role. As the sector continues to grow, solar energy stocks in India present exciting opportunities for investors looking to capitalise on the green energy boom. However, understanding the dynamics of the solar power sector is essential in order to capitalise on this green revolution. Hence, in the article, let’s explore factors to consider before investing in solar energy companies, benefits, risks, how to invest, and the latest list of the best solar stocks in India for 2024.
Table of Contents
Top 10 Solar Energy Stocks in India
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1Y Return (%) | 5Y Avg Return on Investment (%) |
| Zodiac Energy Ltd | Renewable Energy Equipment & Services | 794.43 | 526.25 | 72.35 | 222.85 | 13.13 |
| Alpex Solar Ltd | Renewable Energy Equipment & Services | 1,944.17 | 794.40 | 73.14 | 129.96 | 12.06 |
| Taylormade Renewables Ltd | Renewable Energy Equipment & Services | 443.49 | 399.80 | 41.76 | -21.84 | 5.02 |
| Surana Solar Ltd | Renewable Energy Equipment & Services | 270.98 | 55.07 | -215.06 | 146.95 | 1.67 |
| Urja Global Ltd | Renewable Energy Equipment & Services | 948.44 | 18.05 | 464.92 | 98.35 | 1.22 |
| Websol Energy System Ltd | Renewable Energy Equipment & Services | 5,242.24 | 1,242.05 | -43.34 | 645.53 | -2.04 |
| Ind Renewable Energy Ltd | Renewable Energy Equipment & Services | 16.36 | 11.75 | 327.26 | -51.50 | -2.45 |
| Suzlon Energy Ltd | Renewable Energy Equipment & Services | 92,074.08 | 67.47 | 139.43 | 111.50 | |
| Sterling and Wilson Renewable Energy Ltd | Renewable Energy Equipment & Services | 13,043.63 | 558.75 | -61.55 | 107.98 | |
| SunGarner Energies Ltd | Renewable Energy Equipment & Services | 134.90 | 581.80 | 126.08 | 196.84 |
Note: The data of best solar power companies in India is as of 28th October 2024. The stocks are sorted according to their 5-yr Average Net Profit Margin.
- Sector > Renewable Energy, Renewable Energy Equipment & Services
- 5-Yr Average Return on Investment – Sorted from high to low
🚀 Pro Tip: Explore Tickertape’s Financial Statements for detailed company financial reports to make informed investment decisions.
What are Solar Energy Companies?
Solar energy companies are involved in harnessing the power of the sun to generate electricity. These companies may manufacture solar panels, provide solar power solutions, or engage in the installation and maintenance of solar power systems. In India, several companies are leading the charge in the solar sector, contributing to the nation’s renewable energy goals.Click to read about Renewable Energy Stocks in India 2024
Confused About Which Solar Stocks to Choose? Consider Exploring smallcases!
Let’s learn about what a smallcase is first.
smallcases are modern investment products that help investors easily build a low-cost, long-term and diversified portfolio. A smallcase is a basket of stocks/ETFs that collectively represent a theme, idea or strategy. Investors looking to align their investments sector-wise can consider smallcases. Every smallcase is created and managed by SEBI-registered managers.
Some of the popular smallcases amongst new investors have been included below.
Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.
- Disclosure for Green Energy smallcase
- Disclosure for Rising Responsibly: Green ESG
Overview of the Top Solar Companies in India Listed in Stock Market
Here are brief overviews of the companies on the solar energy share list above:
Zodiac Energy Ltd
Established in 1992, Zodiac Energy Ltd is a leading company in the renewable energy equipment and services sector, specialising in the installation and maintenance of solar power systems and other renewable energy solutions. It provides services across multiple sectors, including residential, commercial, and industrial applications.
Zodiac Energy Ltd has a market capitalisation of Rs. 794.43 cr., and a closing price of Rs. 526.25. The company’s PE ratio stands at 72.35, with a 1-yr return of 222.85% and a 5-yr average return on investment of 13.13%.
Alpex Solar Ltd
Alpex Solar Limited, founded by Promoter Ashwani Sehgal, was originally incorporated as ‘Alpex Exports Private Limited’ on 27 August 1993 with the Registrar of Companies in Chandigarh. The company changed its name to ‘Alpex Solar Private Limited’ on 7 September 2017 in Delhi.
Alpex Solar Ltd has a market capitalisation of Rs. 1,944.17 cr., and a closing price of Rs. 526.25. The company’s PE ratio stands at 72.35, with a 1-yr return of 129.96% and a 5-yr average return on investment of 12.06%.
Taylormade Renewables Ltd
Taylormade Renewables Limited began as Taylormade Solar Solutions Private Limited, a private company founded on 28th July 2010. As one of India’s leading providers of renewable energy solutions, Taylormade offers solar concentrators, CPC collectors for thermal energy, dish and box cookers.
Taylormade Renewables Ltd has a market capitalisation of Rs. 443.49 cr., and a closing price of Rs. 399.80. The company’s PE ratio stands at 41.76, with a negative 1-yr return of -21.84% and a 5-yr average return on investment of 5.02%.
Surana Solar Ltd
Surana Ventures Limited (SVL), established in 2006 as the Surana Group’s flagship company, specialises in manufacturing solar energy systems, focusing on Solar Photovoltaic (PV) modules. SVL offers high-quality solar PV modules that are known for their top price-performance ratios in India.
Surana Solar Ltd has a market capitalisation of Rs. 270.98 cr., and a closing price of Rs. 55.07. The company’s PE ratio stands at a negative -215.06, with a 1-yr return of 146.95% and a 5-yr average return on investment of 1.67%.
Urja Global Ltd
Incorporated in India on 29th May 1992, Urja Global Limited specialises in designing, consulting, integrating, supplying, installing, commissioning, and maintaining both off-grid and grid-connected solar power plants, along with decentralised solar applications. The company also trades in solar products, lead-acid batteries, and electric vehicles.
Urja Global Ltd has a market capitalisation of Rs. 948.44 cr., and a closing price of Rs. 18.05. The company’s PE ratio stands at 464.92, with a 1-yr return of 98.35% and a 5-yr average return on investment of 1.22%.
Websol Energy System Ltd
Websol Energy System Ltd., a leading Indian manufacturer of photovoltaic monocrystalline solar cells and modules, has consistently delivered advanced, high-quality products since 1994. Operating from a state-of-the-art facility at Falta SEZ, West Bengal, Websol has earned global trust for its reliable photovoltaic modules used in domestic, commercial, and industrial applications.
Websol Energy System Ltd has a market capitalisation of Rs. 5,242.24 cr., and a closing price of Rs. 1,242.05. The company’s PE ratio stands at a negative -43.34, with a 1-yr return of 645.53% and a negative 5-yr average return on investment of -2.04%.
Ind Renewable Energy Ltd
Ind Renewable Energy Limited (formerly Vakharia Power Infrastructure Limited) was incorporated on 9th September 2011 under the Companies Act, 1956. Primarily focused on rooftop solar plant projects, the company now manages investments and other assets and liabilities acquired through a Scheme of Arrangement with Everlon Synthetics Limited (ESL) and Vakharia Power Infrastructure Limited (VPIL).
Ind Renewable Energy Ltd has a market capitalisation of Rs. 16.36 cr., and a solar power share price of Rs. 11.75. The company’s PE ratio stands at 327.26, with a negative 1-yr return of -51.50% and a negative 5-yr average return on investment of -2.45%.
Suzlon Energy Ltd
In 1995, Mr Tulsi Tanti founded Suzlon Energy Ltd., transitioning from his primary business in textiles to wind energy after commissioning a wind power project for his textile factory. Suzlon initially collaborated with the German company Sudwind GmbH Windkrafttanlagen to bring advanced wind turbine generator (WTG) technology to India.
Suzlon Energy Ltd has a market capitalisation of Rs. 92,074.08 cr., and an EV solar share price of Rs. 67.47. The company’s PE ratio stands at 139.43, and its 1-yr return is 111.50%.
Sterling and Wilson Renewable Energy Ltd
Sterling & Wilson Renewable Energy Ltd (SWREL), previously Sterling and Wilson Solar Limited, began as ‘Rashmika Energy Private Limited,’ a Private Limited Company, on 9th March 2017. SWREL operates globally as a pure-play, end-to-end solar engineering, procurement, and construction (EPC) solutions provider and was once the world’s largest solar EPC provider.
Sterling and Wilson Renewable Energy Ltd has a market capitalisation of Rs. 13,043.63 cr., and a solar power company share price of Rs. 558.75. The company’s PE ratio stands at a negative -61.55, and its 1-yr return is 107.98%.
SunGarner Energies Ltd
Sungarner Energies Ltd incorporated as ‘Sungarner Energies Private Limited’ on 30 April 2015. The company leads in technology and manufacturing for power conditioning and storage products. It offers services, including solar power plant projects, solar power generation systems, and their operation and maintenance.
SunGarner Energies Ltd has a market capitalisation of Rs. 134.90 cr., and a closing price of Rs. 581.80. The company’s PE ratio stands at 126.08, and its 1-yr return is 196.84%.
Solar Penny Stocks in India – 2024
Here is a solar rooftop price list of penny stocks in solar energy in India with solar energy share prices below Rs. 50:
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio |
| Ind Renewable Energy Ltd | Renewable Energy Equipment & Services | 16.36 | 11.75 | 327.26 |
| Urja Global Ltd | Renewable Energy Equipment & Services | 948.44 | 18.05 | 464.92 |
Note: The data in this solar company share list in India is as of 28th October 2024.
- Close Price: Rs.0.00-50.00 (Sort from lowest to highest)
- Sector > Renewable Energy, Renewable Energy Equipment & Services
Factors to Consider Before Investing in Solar Energy Companies
Investing in solar energy stocks requires careful consideration of several factors:
- Market Position and Financial Health: It’s important to evaluate a company’s market standing and financial stability. Companies with strong financials and a solid market presence are more likely to withstand market fluctuations.
- Technological Capabilities: Innovations and technological advancements can set companies apart. Investors should look for companies that are leaders in solar technology.
- Government Policies and Incentives: Government support can significantly impact the growth of solar companies. Policies and incentives favouring solar energy can provide a conducive environment for these companies to thrive.
- Global and Domestic Demand: The demand for solar energy, both globally and domestically, can influence the performance of solar stocks. Companies positioned to meet this demand are likely to perform better.
Benefits of Investing in Solar Stocks
Investing in solar energy stocks can offer several benefits:
- Growth Potential: As the world moves towards renewable energy, the solar sector, including solar power stocks, is expected to grow significantly.
- Government Support: Government policies and incentives can provide a boost to solar companies, enhancing their growth prospects.
- Sustainability: Solar energy is a sustainable and environmentally friendly option, aligning with global efforts to combat climate change.
Risks of Investing in Solar Stocks
Despite the benefits, investing in solar stocks comes with its own set of risks:
- Market Volatility: The solar sector can be subject to significant market volatility, influenced by various factors including policy changes and technological advancements.
- Technological Risks: Rapid technological changes can render existing technologies obsolete, impacting companies that fail to innovate.
- Regulatory Changes: Changes in government policies and regulations can affect the solar sector, posing risks to investors.
Government Policies and Incentives
India’s government has been proactive in promoting solar energy through various policies and incentives. The 2024 interim budget announced significant measures to support the renewable energy sector. For example, the government has allocated INR 8,500 crores to the grid sector, a significant increase from the previous year. One of the key initiatives is the rooftop solar plan, which aims to provide free electricity up to 300 kWh per month to one crore households. Additionally, the Production Linked Incentive (PLI) scheme continues to boost domestic manufacturing of high-efficiency solar PV modules.
Technological Advancements
The solar energy sector is witnessing rapid technological advancements. Innovations in solar panel efficiency and storage solutions are driving the sector forward. Recent developments in perovskite solar cells promise higher efficiency and lower costs compared to traditional silicon-based solar cells. Additionally, advancements in photovoltaic technology and energy storage systems, such as lithium-ion batteries, are enhancing the reliability and efficiency of solar power.
How to Identify the Best Solar Stocks in India?
If you are looking to invest in solar stocks in India, considering a few key factors may help you identify the most promising opportunities.
- Market Leaders
You might want to start by looking at established solar companies in India, such as leading solar panel manufacturers or well-known solar power companies. Companies with a strong market presence often have better resources and stability, which could make their solar stocks more appealing. - Financial Strength
It may be useful to examine the financial performance of solar energy companies in India. Companies that show consistent revenue growth, maintain low levels of debt, and have strong cash flows might be better positioned to weather market fluctuations, making them attractive as solar energy stocks. - Government Support
Paying attention to government policies, such as the free solar panel scheme by the Government of India, could also provide valuable insights. Companies that receive government incentives or support may have an advantage in the market, potentially making their solar power shares a better choice. - Innovation and Technology
Companies investing in new technologies or innovations, such as more efficient solar panels or advanced solar power solutions, might offer greater growth potential. Identifying firms that are driving technological advancements could help you find the best solar energy stocks in India. - Growth Prospects
You may also want to consider the growth potential of the solar sector stocks and solar panel stocks. Companies with ambitious expansion plans, new projects, or a focus on both domestic and international markets might stand out as good picks among solar stocks in India.
How to Invest in Solar Stocks via Tickertape?
A diversified investment approach in the solar sector can be a wise decision. Investing in both established companies and emerging startups may help balance the risk-reward ratio. Staying vigilant about market trends and government policies can also be beneficial, as this allows investors to make timely decisions based on a thorough assessment of such information. Consulting a financial advisor before making any investment decision is always a prudent step.
To list the best solar company shares on Tickertape, follow the steps below:
Step 1: Go to the Stock Screener
Visit the Tickertape and navigate to the Stock Screener section.
Step 2: Click on ‘+ Create’ in ‘Stock Universe’
In the Stock Screener, click on the ‘+ Create’ button under the ‘Stock Universe’ section.
Step 3: Add Relevant Solar Stocks
Add all the stocks mentioned in your research articles and others related to the solar sector.
Step 4: Apply Filters
Utilise over 200 available filters to sort the solar related stocks based on your preferences, such as profitability, performance, valuation, and growth.
Step 5: Invest Directly Through Tickertape
Once you have shortlisted the solar stocks, you can invest directly through the Tickertape. It allows seamless integration with your trading account, making it easy to buy and sell stocks, including solar power company shares, directly from the platform, saving your time and effort. Connect now!
Investing in solar stocks can be a strategic move to tap into the growing renewable energy sector. A diversified portfolio, combined with regular monitoring and staying informed about industry trends, can help manage risks and enhance potential returns.
Challenges of the Solar Energy Sector
The solar energy sector faces several challenges:
- High Initial Costs: The initial capital investment required for solar projects can be substantial.
- Weather Dependence: Solar energy generation is dependent on weather and geographical conditions, which can be unpredictable.
- Regulatory Challenges: Navigating the regulatory landscape can be complex and challenging for solar companies.
Who Can Invest in the Best Solar Stocks in India?
Investing in solar stocks in India may be suitable for different types of investors, depending on their financial goals and risk tolerance.
- Long-Term Investors
If you are focused on long-term growth and sustainability, investing in solar energy stocks might align with your strategy. The demand for clean energy is expected to grow, and established solar companies in India could offer stable returns over time. - Risk-Tolerant Investors
If you have a higher risk tolerance, you might be interested in smaller or emerging solar power companies in India. These companies could offer significant growth potential but may come with more volatility, especially in the early stages. - Eco-Conscious Investors
If you prioritise environmental sustainability, investing in solar stocks could align with your values. By supporting solar energy companies in India, you can contribute to the growth of renewable energy while potentially earning returns. - Investors Looking to Diversify
If you are looking to diversify your portfolio, adding solar sector stocks could be beneficial. Solar energy is a growing industry, and investing in it might help spread risk across different sectors. - Tech Enthusiasts
If you are excited about technological advancements, you might find solar stocks appealing. Companies that are leading in solar innovation and efficiency could offer attractive opportunities for growth.
Recent Developments in the Sector
The solar sector in India has seen significant developments recently. Major projects and collaborations have been announced, enhancing the country’s solar capacity. For example, Adani Green Energy signed agreements to develop 11,000 MW of solar power projects by 2025, which is a substantial boost to India’s renewable energy goals. Similarly, Tata Power Solar secured a contract to build a 100 MW solar project in Rajasthan, showcasing the growing investment and expansion in the solar sector.
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, utilising 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.
Frequently Asked Questions About Solar Energy Stocks
1. What are solar energy stocks in India?
As the name suggests, solar energy stocks are nothing but companies, which directly or indirectly (through their products) focus on producing energy from sunlight.
2. How to find stocks in the renewable energy sector?
To save the environment from pollution and other man-made destructions, companies started focusing on the renewable energy sector. You can find the solar company share price list in India of stocks in the renewable energy sector on Tickertape.
– Login to Tickertape
– Visit the Stock Screener
– Search for ‘Renewable Energy’ and ‘Renewable Energy Equipment & Services’ under the ‘Sector’.
3. What are the top 10 solar energy stocks in India?
Based on 5-yr return on investment, the top solar stocks in India, including solar energy penny stocks, are:
– Zodiac Energy Ltd
– Alpex Solar Ltd
– Taylormade Renewables Ltd
– Alpex Solar Ltd
– Surana Solar Ltd
– Urja Global Ltd
– Websol Energy System Ltd
– Ind Renewable Energy Ltd
– Suzlon Energy Ltd
– SunGarner Energies Ltd
Please note the solar share list is sorted using the Tickertape Stock Screener.
4. How can I identify the best solar stocks in India?
Identifying the best solar stocks involves analysing the company’s market position, financial health, technological capabilities, and government support. However, before investing, it is always worthwhile to consult a financial advisor.
5. What government policies support solar energy investments in India?
Government policies such as the National Solar Mission and various subsidies and tax benefits support solar energy investments in India.
6. What are the risks associated with investing in solar shares in India?
Risks include market volatility, technological obsolescence, and regulatory changes. Investors should stay informed about these factors.
7. What is the free solar panel scheme by Government of India?
The free solar panel scheme by the Government of India is an initiative aimed at promoting solar energy by providing subsidies or financial support to individuals and communities for installing solar panels. The scheme, supported by the Solar Energy Corporation of India (SECI), helps reduce electricity costs and encourages the use of clean, sustainable energy across the country.
Explore other popular stock collections on Tickertape –
Here’s are some of the popular stock collections across different sectors in India:
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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