Best Solar Energy Stocks in India

Best Solar Energy Stocks in India 2024 as per Analyst Ratings

The following table mentions the best solar energy stocks in India as per analyst ratings. We have selected analyst ratings as a criterion to list these stocks because stock market analysts run a complete research of the market before rating a stock:

Top Solar Energy Stocks in India in 2024 as per Market Capitalisation

Here is a table outlining the top solar energy stocks in 2024 as per market capitalisation:

Overview of Best Solar Energy Stocks in India as per Analyst Ratings

Here is a brief overview of the best solar energy companies in India as per analyst ratings-

1) NTPC Limited

NTPC Limited, established in 1975, is India’s largest power-generating company. The company generates and sells electricity to state power utilities on a wholesale basis.

NTPC produces electricity using gas, liquid fuel, coal, and other renewable sources. Moreover, it also provides consultancy services, rural electrification, power trading, coal mining, project management and supervision, ash utilisation, re-gasification, etc. 

NTPC has 51 power stations comprising 27 coal, 7 gas, 15 solar PV, 1 large hydro and 1 small hydro-based stations. Additionally, it has 42 subsidiary and joint venture power stations consisting of 16 solar PV, 9 coal, 8 hydro, 4 gas, 4 wind and 1 small hydro-based station. It has an installed capacity of 75,418 MW and aims to become a 130 GW firm by 2032.

2) NHPC Limited

Founded in 1975, National Hydroelectric Power Corporation (NHPC) Limited is one of the largest hydropower generating companies headquartered in Faridabad. In addition to hydropower projects, NHPC deals with wind energy and solar energy projects.

NHPC's primary objective is to actively plan, promote and coordinate integrated and efficient hydropower development using both conventional and non-conventional energy sources in India and internationally. 

The NHPC has an installed capacity of around 7,097 MW, which includes 1,546 MW of joint ventures. It comprises 22 hydro-power, 76 solar-based and 50 wind-based power stations.  NHPC also provides consultancy services like planning, operation and maintenance, survey and investigation, design and engineering, renovation, etc. Some of the power stations of NHPC include Kishanganga, Chutak, Nimmo-Bazgo, Jaisalmer, Dhauliganga, Loktak, Baira Siul, Tanakpur, etc.

3) JSW Energy Limited

Incorporated in 1994, JSW Energy Limited is an integrated power company in India, involved in generating, transmitting and trading electricity. It includes 2 segments: thermal power plant and renewable power plant. Its thermal power plant includes the generation of power via coal, lignite, oil, gas and other thermal sources. On the other hand, in the renewable segment, the power is generated via solar, hydro, wind and other renewable energy sources.

JSW Energy has a capacity of around 6,677 MW, including thermal power of 3,158 MW, hydropower of 1,391 MW, wind power of 1,461 MW, and solar power of 667 MW. Additionally, it shares management of two 400 KV transmission lines with Maharashtra State Electricity Transmission Company Limited. It has manufacturing plants in Karnataka, Rajasthan, Himachal Pradesh, Andhra Pradesh and Maharashtra. 

Factors to Consider Before Investing in Solar Energy Stocks in India

Before buying the top Indian solar energy stocks, it is crucial to consider some factors to make a well-informed decision. Such factors include:

• Financial Performance

You must evaluate the financial health performance of the solar energy company, which comprises revenue margins, profitability, cash flow, etc. Look for companies with strong financial metrics.

• Global Economic Factors

Various global economic factors can affect the shares of solar companies. For instance, it can result in supply chain disruption, which can affect the supply of raw materials and other components of solar industries. 

• Competitive Advantage

Investing in solar stocks in India can be profitable because of the cost benefits of solar power, which is driving a surge in demand for solar equipment. It creates competition, therefore, you must look for solar stocks that have sustainable competitive advantages. 

• Government Policies

The government of India has various policies and incentives that can help the solar energy market. You must keep a close eye on these policies, which can play a big role in shaping the future of this industry.

Should You Invest in Solar Energy Stocks?

When considering whether to invest in solar energy stocks, it is vital to understand what challenges the solar industry faces. Despite its potential as an alternative energy source, solar development in India encounters several obstacles. These include a lack of research and development infrastructure, leading to reliance on imports and increased costs. 

Additionally, solar systems require significant initial investment and have long payback periods, which can deter potential adopters. Lack of awareness, especially in rural areas, further hinders widespread adoption. Moreover, issues such as land acquisition and government approvals also contribute to delays in solar plant development. Furthermore, concerns about limited warranty support from implementation partners add to the challenges faced by the industry.

Considering these factors is crucial when evaluating investment opportunities in solar energy stocks.

The Bottom Line 

India’s potential to generate electricity via solar energy is huge. The solar energy sector in India is trustworthy as it is backed by the Government of India with its multiple schemes and investments.

Remember, in case you face an issue while investing in a solar energy stock, you can connect with a financial advisor, who can guide you to select the stocks.