The solar energy sector in India has witnessed remarkable growth, driven by government initiatives, increasing investments, and a strong push towards renewable energy sources. Solar power is at the forefront of this transition with a target of achieving 500 GW of renewable energy capacity by 2030. The following article outlines the top solar energy stocks in India, providing insights into their operational capacity, market capitalization, and recent investments.
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Solar Energy Stocks: Industry Overview
India’s solar energy capacity has surged dramatically over the past decade, increasing from just 2.6 Gigawatts (GW) in 2014 to approximately 90.76 GW as of 30 September 2024. This impressive figure consists of Ground-mounted solar plants dominating the sector with 70.05 GW, while grid-connected rooftop solar and hybrid projects contribute 14.30 GW and 2.63 GW, respectively. Off-grid solar solutions account for the remaining 3.78 GW.
This growth is attributed to favourable government policies, including the Production-Linked Incentive (PLI) scheme aimed at boosting domestic manufacturing of solar panels and components. Additionally, significant foreign direct investment (FDI) has been attracted to the sector, allowing for further expansion and innovation.
The government’s commitment to renewable energy is reflected in various initiatives, including the Pradhan Mantri-Surya Ghar Muft Bijli Yojana, which aims to provide free electricity through rooftop solar installations. As a result, the Indian solar market presents lucrative opportunities for investors and companies alike.
Adani Green Energy: Pioneer of Solar Energy Stocks
Adani Green Energy (AGEL), part of the Adani Group, is one of India’s largest renewable energy companies. Founded in 2015, AGEL has rapidly expanded its operational capacity to over 11 GW across various states. As of October 2024, the company boasts a market capitalization of INR 2,45,842 crore and a share price of INR 1,552. AGEL’s strategic partnerships have enhanced its growth trajectory; notably, it recently entered into a joint venture with TotalEnergies to develop a new solar portfolio exceeding 1,150 MW in Gujarat. This collaboration underscores AGEL’s commitment to becoming a global leader in renewable energy while significantly contributing to India’s clean energy targets.
Market Cap: INR 1,55,703 crore
Revenue: INR 9,220 crore
Profit After Tax (PAT): INR 1,260 crore
ROCE (%): 9.65%
P/E Ratio: 121
Waaree Energies: Emerging Player in Solar Power Stocks
Waaree Energies is a prominent player in India’s solar energy sector, recognized as the largest manufacturer of solar photovoltaic (PV) modules with an impressive operational capacity of 12 GW. The company has established a significant market presence, holding 21% of the domestic solar module market and 44% of solar module exports as of FY24.
With a market capitalization of approximately INR 83,780 crore, Waaree Energies is considered a strong investment option among solar stocks in India. The company is actively involved in large-scale projects, including supplying 900 MW of modules for a major solar power plant in Jaisalmer, Rajasthan.
Market Cap: INR 78,721 crore
Revenue: INR 11,398 crore
Profit After Tax (PAT): INR 1,274 crore
ROCE (%): 43.6%
P/E Ratio: 79.6
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NTPC Green Energy
NTPC Green Energy, a subsidiary of NTPC, is India’s largest renewable energy public sector enterprise (excluding hydro) by operating capacity and power generation as of 30 September 2024. Its renewable portfolio includes 3,220 MW of solar and 100 MW of wind projects across six states, mitigating location-specific generation risks. The company develops utility-scale renewable projects for public sector undertakings and Indian corporates, serving 17 off-takers through 41 solar and 11 wind projects. With a total portfolio of 16,896 MW—3,320 MW operational and 13,576 MW contracted or awarded—and an additional 9,175 MW in the pipeline, its total capacity, including pending agreements, stands at 26,071 MW.
Market Cap: INR 1,04,697 crore
Revenue: INR 1,963 crore
Profit After Tax (PAT): INR 345 crore
ROCE (%): 7.60%
P/E Ratio: 304
Sterling and Wilson Renewable Energy
Sterling and Wilson Renewable Energy Ltd specializes in providing engineering procurement construction (EPC) services for solar power projects. With a market capitalization of INR 12,188 crore as of 11 November 2024, Sterling and Wilson has established itself as a leader in the solar EPC space. The company has been involved in several high-profile projects both domestically and internationally. Sterling and Wilson Renewable Energy has secured an INR 328 crore contract to build a 1,000 MWh battery energy storage system in Rajasthan and a 20 MW floating solar project in Karnataka.
Market Cap: INR 10,484 crore
Revenue: INR 3,035 crore
Profit After Tax (PAT): INR (211) crore
ROCE (%): 3.77%
KPI Green Energy: Best Pick Among Solar Power Stocks
KPI Green Energy is a key player in India’s renewable energy sector, specializing in the development and operation of solar power plants. In Q2 FY 2024-25, the company reported a remarkable 101% growth in profit after tax (PAT), reaching INR 69.8 crore, alongside a revenue increase of 67.4% to INR 361.4 crore.
KPI Green has secured significant contracts, including a recent 200 MW solar project in Khavda, Gujarat, and has raised INR 1,000 crore through a Qualified Institutional Placement (QIP). With a focus on sustainability and expansion, KPI aims to install 1,000 MW capacity by 2025, enhancing its position in the green energy market.
Market Cap: INR 10,264 crore
Revenue: INR 1,024 crore
Profit After Tax (PAT): INR 162 crore
ROCE (%): 21.6%
P/E Ratio: 44.4%
Orient Green Power: A Top Choice in Solar Energy Stocks India
Established in 2006, Orient Green Power primarily engages in power generation from renewable sources such as wind and biomass but is increasingly focusing on solar projects as well. With a market capitalization of INR 2,465.71 crore as of September 2024, it represents one of the more affordable options for investors looking into green energy stocks.
The company’s strategic initiatives aim at expanding its operational capacity through new project developments while enhancing its overall market share within the renewable sector.
Market Cap: INR 1,894 crore
Revenue: INR 271 crore
Profit After Tax (PAT): INR 38 crore
ROCE (%): 6.97%
P/E Ratio: 75.1
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Zodiac Energy: A Promising Contender Among Solar Power Stocks in India
Zodiac Energy is a prominent player in India’s renewable energy sector, specializing in solar power solutions. In September 2024, the company secured a contract to develop 30 MW of ground-mounted solar projects for the Ahmedabad Municipal Corporation for INR 154 crore. This project is expected to generate 1.42 crore units of electricity annually and will be completed within 18 months. Zodiac Energy has an installed capacity of over 80 MW and has executed more than 300 MW of solar projects, catering primarily to government and commercial clients. The company is committed to advancing sustainable energy solutions across India.
Market Cap: INR 736 crore
Revenue: INR 220 crore
Profit After Tax (PAT): INR 11 crore
ROCE (%): 22.4%
P/E Ratio: 54.7
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Conclusion
The Indian solar stock market presents numerous opportunities for investors looking to capitalize on the growing demand for renewable energy solutions. Companies like Adani Green Energy and Waaree Energies are among the best solar energy stocks in India, leading the charge towards achieving India’s ambitious clean energy targets while offering substantial returns on investment.
With ongoing government support and increasing private sector participation through acquisitions and joint ventures, the outlook for these top solar stocks in India remains positive as they contribute significantly to India’s transition towards sustainable energy sources. Investing in these stocks not only supports environmental goals but also promises potential financial growth.
