Leading Solar Stocks on NSE: A Look at 10 Powerhouse Picks

Introduction

India is one of the fastest-growing markets in the solar energy sector, driven by the government’s ambitious renewable energy targets. India's installed solar capacity has skyrocketed to 84 GW, up from merely 2.6 GW in 2014, positioning the nation as the fifth-largest in the world for solar power capacity. This rapid growth presents a compelling opportunity for investors looking to explore promising solar stocks in India.

 

In this article, we will highlight 10 of the most notable solar energy stocks in India, discussing their key features, ideal investor profiles, investment strategies, benefits, drawbacks, and other essential details.

Understanding Solar Energy Stocks in India

Solar energy, a clean and eco-friendly power source, is gaining widespread use in both industrial and residential settings. This growing trend is reflected in many NSE-listed solar energy stocks.

 

Since 2011, India's solar energy sector has experienced tremendous growth, attracting increasing interest from investors. These stocks represent companies that manufacture, sell, and install solar panels, inverters, and other related products. Many leading Indian companies are heavily involved in solar energy production and services.

 

Investing in leading solar energy stocks in India presents a significant opportunity to capitalize on the growing renewable energy sector. With global demand for clean energy on the rise, experts anticipate a significant increase in the value of Indian solar stocks. These stocks include both penny stocks and government-backed shares, offering the potential for strong financial returns.

 

Impact of the 2024-25 Union Budget on India's Solar Energy Industry

The Union Budget for 2024-25 introduces several key initiatives aimed at boosting India's solar energy sector.

 

• Pradhan Mantri-Surya Ghar Muft Bijli Yojana: This scheme plans to provide free electricity of up to 300 units per month to one crore households through rooftop solar (RTS) installations. With more than 12.8 million registrations and 1.4 million applications, eligible households stand to save between Rs. 15,000 and Rs. 18,000 each year. The initiative also aims to promote electric vehicle (EV) charging, foster entrepreneurship, and create jobs in solar panel manufacturing and maintenance.

 

• Energy Infrastructure Enhancements: The budget includes support for pump storage projects to ensure a stable energy supply, along with a joint venture between NTPC and BHEL to establish an 800 MW supercritical thermal power plant.

 

• Customs and Manufacturing Policies: The budget expands the list of exempted capital goods for solar panel manufacturing, while removing customs duty exemptions for solar glass and copper interconnects due to sufficient domestic production capacity.

 

As solar energy plays a crucial role in India's goal to generate 500 GW of renewable energy by 2030, these initiatives are critical in reducing dependence on fossil fuels and addressing climate change.

Top Ten Solar Stocks to Consider for Investment in 2024

 

 

1. KPI Green Energy Ltd.

KPI Green Energy Limited is responsible for developing, constructing, owning, and managing solar power plants, serving both as an independent and captive power producer. Additionally, KPI Green Energy engages in the sale of land parcels to third parties as part of its diversified business activities.

 

• Average price returns have been moderate, lacking excitement.

• The stock seems to be trading at a premium relative to the market average.

• The company has demonstrated strong financials and a solid growth trajectory over the years.

• There are encouraging signs of both profitability and operational effectiveness.

• The stock is currently not in the overbought territory.

 

In conclusion, KPI Green Energy Ltd. establishes itself as a vital contributor to the solar energy landscape. While the stock's average price return and elevated valuation suggest it may be overvalued, its strong financial performance and robust growth trajectory underscore its leadership in the sector. With commendable profitability and operational efficiency, combined with a current entry point that isn’t in the overbought range, KPI Green Energy Ltd. remains a preferred option among top solar stocks.

2. BF Utilities Ltd

BF Utilities Ltd. focuses on wind power generation and infrastructure development, operating primarily through two key segments: Wind Energy and Infrastructure.

• The stock has not performed well and ranks among the lower performers.

• It appears to be overvalued in comparison to the market average.

• The company's financial growth is trailing behind the market.

• There are encouraging signs of both profitability and operational effectiveness.

• While the stock is considered expensive, it has not yet reached the overbought territory.

Despite its moderate price return and elevated valuation, BF Utilities Ltd. showcases solid profitability and operational efficiency. Although its growth is trailing the market, the company continues to be a significant contender among top solar stocks.

3. Zodiac Energy Ltd

Zodiac Energy Limited focuses on the installation of power generation plants across India, providing an extensive array of solar solutions. Their offerings encompass solar PV systems, water heaters, grid and off-grid installations, solar pumping solutions, building-integrated PV systems, and concentrated solar thermal systems. These solutions cater to various applications, including process steam generation, water desalination, and solar air conditioning.

• The price return has been mediocre, with no significant thrills.

• The stock appears to be trading at a premium compared to the market average.

• Financial growth is lagging behind the market.

• There are strong indications of profitability and operational efficiency.

• The stock is currently not in the overbought territory.

 

Although Zodiac Energy Ltd. has average price returns and a high valuation, it exhibits moderate profitability and slower growth. Nevertheless, its extensive array of solar solutions solidifies its status as a prominent player in the solar stock market.

 

Evaluation of Top Solar Industry Stocks for Investment in 2025

 

 

KPI Green Energy Ltd. leads in revenue and net income growth, significantly outperforming the industry averages and expanding its market share. In contrast, BF Utilities Ltd. has experienced a downturn in both revenue and net income, along with a notable decrease in its market share. Zodiac Energy Ltd. shows strong revenue growth and an improved market share. Overall, KPI Green Energy Ltd. is the strongest performer among the three, showcasing robust growth and increasing market presence.

Price comparison: 

Why Invest in Solar Energy Stocks?

Investing in solar energy stocks in India presents considerable opportunities due to the nation's proactive policies and rich natural resources. The Indian government strongly backs the solar sector through initiatives like the National Action Plan on Climate Change, which targets a renewable energy capacity of 500 GW by 2030.

 

India's solar capacity has experienced impressive growth, rising from 1.60 GW in 2013 to over 84 GW by mid-2024. This expansion is largely fueled by technological advancements that have made solar power more affordable and efficient compared to traditional fossil fuels. In addition to driving economic growth and job creation, the solar industry aligns with global sustainability goals.

 

India's geographic advantages, such as ample sunlight and relative market stability, further support solar energy production. While solar stocks are positioned for growth, consulting with a financial expert is recommended before making any investment decisions.

How to Invest in Solar energy Stocks

Investing in India's solar energy stocks presents an enticing opportunity for investors. To begin, start by researching reputable solar companies with strong financial health and growth potential. Evaluate their performance by analyzing revenue trends, profitability, and future growth prospects. Understanding industry trends and government policies, such as incentives and subsidies, can help you identify companies poised for success.

 

Diversify your investments across different solar sectors to manage risk effectively. Open a Demat and trading account through a brokerage firm to hold and trade shares electronically. Once your account is set up, use your broker’s platform to buy solar energy stocks, and keep track of your investments and market developments to make informed decisions.

 

Who Should Contemplate Investing in Solar Companies Listed on the Stock Exchange in India?

Investing in listed solar companies in India is well-suited for long-term investors aiming for capital growth, individuals with a higher tolerance for market fluctuations, and those committed to supporting the shift toward sustainable energy solutions.

Key Considerations for Investing in Solar Industry Stocks

 

Before investing in shares of the Indian solar industry, it's vital to evaluate the government policies and incentives that may impact growth and profitability. While adding solar stocks to your portfolio can be advantageous, it's important to remain conscious of competition from traditional energy sources and the influence of global economic conditions on stock performance.

 

Investing in solar industry shares in India offers several compelling advantages. First, the long-term growth potential is significant, driven by increasing demand for renewable energy and decreasing technology costs. Additionally, incorporating solar stocks into your portfolio can provide a distinct risk-return profile, enhancing diversification compared to traditional energy stocks.

 

Moreover, investing in solar energy contributes to a cleaner and more sustainable energy system, playing a crucial role in reducing greenhouse gas emissions. Finally, as the industry continues to innovate, the rising share prices of solar companies present the potential for substantial returns on investment.

 

Conclusion

India is on the verge of establishing itself as a key player in the solar energy market, offering significant growth opportunities for solar stocks. With robust government backing for the sector, there is a strong expectation for solar share prices to increase. Fortunately, you don’t have to monitor each solar stock separately. Enrich Money’s trading platform enables you to invest in a carefully selected portfolio of leading solar companies listed on the stock market, granting you straightforward access to this promising industry.

 

Frequently Asked Questions

1. How can I invest in solar energy stocks?

Investing in solar energy stocks is simple with the Enrich Money platform. You can utilize our user-friendly Orca app to access a carefully curated list of solar stocks and ETFs, monitor their performance, and execute trades with ease.

 

2. Is now a good time to invest in solar energy stocks?

The solar sector benefits from numerous government initiatives, including solar parks and rooftop programs. While these present valuable opportunities, it's crucial to conduct thorough research, evaluate potential risks, and consult with financial experts before making any investment in solar stocks.

 

3. Who should consider investing in solar energy stocks?

Solar energy stocks are ideal for individuals interested in renewable energy and looking for growth potential. However, it’s advisable for investors to conduct their own research and consult a financial advisor prior to making any investment choices.

 

4. How Do Solar Energy Stocks Measure Up Against Other Renewable Investments?

Solar energy stocks generally present distinct risk and return characteristics compared to other renewable energy assets, such as wind and hydropower. It's important to evaluate aspects like market opportunities, advancements in technology, and the level of governmental backing when comparing these investment options.

 

Disclaimer:  This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.