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List of Best Energy ETFs in India 2026

By early 2026, India’s energy transition continued with non-fossil fuel capacity exceeding 51% of the total installed power base, driven by record additions in solar and wind capacity. Renewable generation and grid integration efforts reflect strong policy support for clean energy, while overall electricity demand and fuel consumption remain elevated, underscoring structural shifts in India’s energy mix.

Top Energy ETFs in 2026

Energy ETF Stock Screener

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NameStocks (2)Sub-SectorSub-SectorMarket CapMarket CapClose PriceClose PricePE RatioPE Ratio1D Return1D Return1M Return1M Return6M Return6M Return1Y Return1Y ReturnPB RatioPB RatioReturn on EquityReturn on EquityROCEROCEDividend YieldDiv YieldDebt to EquityDebt to EquityVolatility vs NiftyVolatility vs Nifty
1.Mirae Asset Nifty Energy ETFENERGYEquityEquity7.697.6936.4536.45---0.36-0.366.186.180.610.610.610.61----------1.581.58
2.Motilal Oswal Nifty Energy ETFMOENERGYEquityEquity6.126.1236.4436.44---0.38-0.385.905.902.562.562.562.56----------1.601.60

Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.

Overview of Top Energy ETFs in India

ICICI Pru Energy Opportunities Fund

ICICI Pru Energy Opportunities Fund invests in companies across the energy value chain, including oil, gas, power, and renewable segments. The fund captures trends driven by rising domestic energy demand, policy reforms, and capacity expansion across India’s traditional and clean energy industries.

SBI Energy Opportunities Fund

SBI Energy Opportunities Fund focuses on energy-related businesses, including power generation, oil and gas, utilities, and renewable energy. It aims to reflect sector developments driven by India’s growing electricity demand, energy transition policies, and infrastructure investments in the thermal and clean energy segments.

Nippon India Power & Infra Fund

This fund invests in companies from the power, utilities, oil and gas, infrastructure, and engineering segments. It captures growth linked to India’s infrastructure expansion, power sector reforms, domestic manufacturing efforts, and long-term capital spending across the country’s core industrial ecosystem.

DSP Natural Res & New Energy Fund

DSP Natural Resources & New Energy Fund invests in companies engaged in natural resources, metals, mining, energy production, and emerging clean technologies. It tracks global and domestic trends in resource demand, commodity cycles, and the shift toward renewable and alternative energy sources.

Tata Resources & Energy Fund

Tata Resources & Energy Fund allocates to companies in the resources, power, oil and gas, and renewable energy sectors. The fund reflects industry movement driven by India’s energy needs, resource availability, policy incentives, and investments in both conventional and green energy capacity.

What are Energy ETFs?

Energy ETFs are exchange-traded funds that invest in a basket of companies involved in the energy sector. These ETFs typically track indices made up of firms operating in power generation, oil and gas, renewable energy, energy equipment, and utilities. They mirror the performance of the broader energy industry through a single traded unit.

How to Invest in Energy ETFs?

Here's how you can invest in Energy ETFs using Tickertape -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Tickertape Stock Screener
  3. Filter Energy ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
  4. Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Advantages of Investing in Energy ETFs in India

Aligned with Rapid Renewable Growth

India added a record 44.5 GW of new renewable energy capacity in 2025, nearly doubling previous annual additions, signalling strong structural expansion in clean power generation. Energy ETFs that include renewable-linked stocks can reflect this growth trend.

Non-Fossil Share Rising

As of late 2025, non-fossil sources accounted for about 50% of India’s installed power capacity, ahead of the 2030 target, showing a shift toward cleaner energy that ETFs may capture via diversified sector holdings.

Increasing Electricity Demand and Output

India generated over 1824 TWh of electricity in FY 2024-25, with rising demand from the industrial and domestic segments, providing broad support for power and utility companies in energy ETFs.

Strong Solar and Wind Generation

In November 2025, renewable generation climbed by 23% year-on-year, with solar generating over 13,188 mn units, highlighting expanding capacity reliability that may benefit ETFs with renewable exposure.

Domestic Fuel Consumption Growth

Fuel consumption, including petroleum products, rose 3% in late 2025, supported by higher crude processing and diversified energy usage across sectors – a tailwind for oil and gas companies within broader energy ETFs.

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Risks of Investing in Energy ETFs in India

Reliance on Shift in Energy Mix

While renewables are growing rapidly, coal still accounts for a large share of generation. Ongoing infrastructure and grid integration challenges may create interim volatility in energy stock performance, which ETFs can reflect.

Project Delays Due to Regulation

Renewable projects in 2025 faced delays due to conservation regulations and transmission constraints, underscoring how regulatory and environmental compliance issues can affect underlying companies' returns in energy ETFs.

Oil & Gas Import Exposure

India imported a significant portion of crude in 2025, and rising import volumes of petroleum products can affect margins for oil & gas producers, influencing ETF holdings in that segment.

Execution Risk in Renewable Infrastructure

Though capacity additions are strong, delays in land acquisition, grid connectivity, and PPAs continue to impede the timely commissioning of large renewable projects, posing an execution risk for ETFs with project developers.

Commodity Price Cycles

Volatility in international crude and related energy commodity prices, which affect refining and power generation margins, can influence energy sector returns and ETF performance.

Factors to Consider Before Investing in Energy ETFs

Renewable vs Conventional Allocation

India added 44.5 GW of renewable capacity in 2025, with solar and wind leading, so the weight of renewable energy stocks in an ETF can materially affect long-term exposure to the energy transition.

Grid & Transmission Backlog

Rapid capacity additions require grid upgrades. Companies involved in transmission infrastructure may perform differently from pure generators, making ETF composition and weighting critical.

Fuel & Crude Price Dynamics

With domestic fuel consumption growing and crude imports rising, ETFs with oil & gas stocks may be sensitive to global price swings and import dependence.

Regulatory & Policy Signals

Policy support for solar, wind, and clean energy (e.g., tariff reforms, incentives) can change competitive dynamics across energy segments, influencing ETFs with diversified industry exposure.

Electricity Demand Growth

Strong power generation figures (over 1824 TWh in FY24-25) signal broad-based demand growth, so ETFs that include utilities and grid operators may reflect structural demand trends beyond generation alone.

Taxation on Energy ETFs

Energy ETFs follow holding-period–based capital gains taxation. The tax impact differs for short-term and long-term investments.

Holding Period Tax Treatment
Short-Term (< 12 months ) Gains taxed at a flat rate of 20% (increased from the previous 15%).
Long-Term (> 12 months) Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year.

Conclusion

Energy ETFs reflect India’s evolving power ecosystem, capturing movements across renewable capacity expansion, conventional energy trends, grid development, and policy-driven sector shifts. Their performance aligns with changes in energy demand, crude prices, regulatory updates, and infrastructure execution. To compare sector ETFs and study their holdings, liquidity, and long-term patterns, users can explore the Tickertape ETF Screener, which offers detailed data and filters for analysing India’s energy-linked funds with clarity.

Frequently Asked Questions on Energy ETFs

  1. What is energy ETF?

    An energy ETF is an exchange-traded fund that tracks a basket of companies operating in the energy ecosystem. These may include firms in power generation, renewables, oil and gas, utilities, or energy equipment, depending on the index the ETF follows.

  2. What is the best energy ETF?

    The following are the best energy ETFs as per 1-year returns:
    1. DSP Natural Res & New Energy Fund
    2. Tata Resources & Energy Fund
    3. ICICI Pru Energy Opportunities Fund
    4. SBI Energy Opportunities Fund
    5. Nippon India Power & Infra Fund

    Disclaimer: The above energy ETFs list in India is for educational purposes only and should not be considered investment advice.

  3. Are energy ETFs worth it?

    Energy ETFs reflect movements in India’s power demand, renewable expansion, crude price trends, and policy changes. Their relevance depends on an individual’s objectives and how they view sector-specific volatility, rather than any guaranteed outcome.

    Disclaimer: This response is informational and not investment advice or a recommendation.

  4. Are energy ETFs suitable for beginners?

    Energy ETFs offer exposure to multiple energy companies through a single instrument, but beginners should be aware that the sector can react to commodity cycles, regulations, and demand patterns. Suitability varies by personal risk comfort and understanding of the sector.

    Disclaimer: This explanation is not financial advice and should not be treated as a recommendation.

  5. Do energy ETFs only invest in traditional energy companies?

    No. Energy ETFs may include companies from both traditional energy segments, such as oil, gas, and thermal power, and newer areas like solar, wind, green hydrogen, and energy storage, depending on the index being tracked.

  6. How to sell energy ETFs?

    Energy ETFs can be sold by placing a sell order via your demat account on the exchange. The trade executes at market price and settles according to exchange procedures.