1. Adani Green Energy Ltd
Adani Green Energy Ltd, established in 2015, has rapidly ascended to become a leading player in India's renewable energy sector. The company focuses on developing and operating utility-scale grid-connected solar and wind farm projects. As of early 2025, Adani Green Energy reported a market capitalisation of approximately Rs. 1,46,332.92 crore, underscoring its significant industry presence. However, in November 2024, the company faced challenges when its chairman, Gautam Adani, was indicted by the U.S. on charges of alleged bribery and fraud related to securing contracts. This development led to a substantial decline in the company's market value and affected several international deals.
2. Orient Green Power Company Ltd
Founded in 2006, Orient Green Power Company Ltd specialises in renewable energy generation, with a focus on wind and solar power projects. The company operates numerous wind farms across India and has been expanding its solar energy portfolio. As of March 2025, Orient Green Power had a market capitalisation of Rs. 1,476.85 crore. In the quarter ending December 2024, the company reported a consolidated total income of Rs. 40.39 crore.
3. CESC Ltd
CESC Ltd, a part of the RP-Sanjiv Goenka Group, is a diversified power utility engaged in the generation and distribution of electricity. While traditionally focused on conventional power, CESC has been investing in renewable energy sources, including solar power, to diversify its energy mix and align with sustainable practices. The company's strategic initiatives aim to enhance its footprint in the renewable energy sector.
4. Zodiac Energy Ltd
Zodiac Energy Ltd is an emerging player in India's solar energy market, offering comprehensive solutions for solar power projects, including design, engineering, procurement, and construction services. The company caters to residential, commercial, and industrial clients, facilitating the adoption of solar energy across various sectors. As of early 2025, Zodiac Energy reported a profit of Rs. 5.71 crore on a total income of Rs. 104.79 crore for the year ending December 2024.
5. KPI Green Energy Ltd
KPI Green Energy Ltd focuses on renewable power generation, particularly through solar energy projects. The company develops, builds, owns, and operates solar power plants, providing clean energy solutions to various clients. As of early 2025, KPI Green Energy had a market capitalisation of Rs. 8,353 crore. In the quarter ending December 2024, the company reported a profit of Rs. 77.07 crore on a total income of Rs. 490.28 crore.
6. K.P. Energy Ltd
Established in 2010, K.P. Energy Ltd is involved in the development of renewable energy projects, with a primary focus on wind and solar power. The company offers end-to-end solutions, including project development, engineering, procurement, and construction services. As of March 2025, K.P. Energy had a market capitalisation of Rs. 2,724.95 crore. In the quarter ending December 2024, the company reported consolidated net sales of Rs. 211.77 crore, marking a 156.8% year-on-year increase.
7. JSW Energy Ltd
JSW Energy Ltd, part of the JSW Group, is a prominent player in India's power sector, with a diversified portfolio that includes thermal, hydro, and solar power projects. The company has been actively expanding its renewable energy capacity to contribute to sustainable development. As of early 2025, JSW Energy had a market capitalisation of Rs. 90,464.50 crore.
8. Gensol Engineering Ltd
Gensol Engineering Ltd, incorporated in 2012, provides engineering, procurement, and construction (EPC) services for solar power projects. The company assists clients in setting up solar power plants, offering end-to-end solutions. As of March 2025, Gensol Engineering had a market capitalisation of Rs. 619.02 crore.
9. NHPC Ltd
NHPC Ltd, originally known for hydroelectric power, has been actively expanding its presence in the solar energy segment. As a government-owned company, NHPC plays a strategic role in India’s transition towards renewable energy. It has diversified its portfolio to include several large-scale solar power projects across the country. As of early 2025, NHPC’s market capitalisation stands at approximately Rs. 69,707 crore. Its long-standing presence and government backing make it a relatively stable option for investors seeking exposure to solar stocks. The company’s robust execution record and ability to scale projects have positioned it as a major player in India’s green energy transformation.
10. Solar Industries India Ltd
Solar Industries India Ltd is a diversified industrial explosives manufacturer that has also made strategic forays into the renewable energy sector, including solar energy. While its core business remains in explosives and defence-related products, the company has initiated renewable energy projects to support its sustainability goals and reduce operational costs. As of 2025, the company has a market capitalisation of Rs. 78,144.10 crore. Solar Industries India is also investing in green hydrogen and energy storage, complementing its solar ambitions.
Implications of the Union Budget 2024-25 on the solar energy sector in India
The Union Budget 2024-25 reinforced the Indian government’s focus on renewable energy, especially solar power, as a key area of growth. The Ministry of New and Renewable Energy (MNRE) received increased budget allocations aimed at supporting solar energy capacity building, manufacturing, and storage. One of the major highlights was the extension and scaling of the Production-Linked Incentive (PLI) scheme for solar PV module manufacturers. This is expected to boost domestic production and reduce reliance on imports. Additionally, funds were allocated for green hydrogen, which aligns with solar energy as a primary power source.
The Budget also announced investments in solar rooftop schemes for rural and urban households, which will increase adoption at the grassroots level. This move is likely to benefit companies such as KPI Green Energy and Zodiac Energy. Moreover, favourable tax exemptions for solar project developers and increased viability gap funding (VGF) for large solar parks signal a positive outlook. Overall, the Budget 2024-25 positions solar energy as a strategic sector for India's economic and environmental future. Investors can expect enhanced infrastructure, policy support, and capital flow towards solar energy stocks. Find more details in the Union Budget portal.
Future of solar energy stocks
The future of solar energy stocks in India is bright, driven by technological innovations, government support, and global climate goals. With growing solar capacity and storage solutions, these stocks are poised for sustainable growth. The push for green hydrogen and grid modernisation will further boost profitability. As carbon neutrality becomes a priority, more institutional funds may enter the sector. Solar firms diversifying into hybrid projects—solar plus wind or battery—are likely to outperform. The sector promises consistent, long-term returns.
Factors to consider before investing in solar stocks
Before investing in solar stocks, assess the company’s business model, financial stability, and project pipeline. Check regulatory approvals, PPA contracts, and debt levels. Compare profit margins, return ratios, and capacity utilisation. Consider external factors like raw material prices and global energy trends. Evaluate leadership quality and governance practices. Track government policy support, such as PLI schemes or budget allocations. Also, check ESG scores and sustainability initiatives. Always align your risk appetite with the company’s volatility and sectoral exposure.
India’s solar energy goals and opportunities for investors
India has set an ambitious target to achieve 500 GW of non-fossil fuel energy capacity by 2030, of which solar energy is expected to contribute nearly 300 GW. This makes India one of the largest and fastest-growing solar energy markets globally. Driven by international commitments like the Paris Agreement and domestic needs such as energy security, the government has launched several schemes to boost solar energy deployment. These include the PM-KUSUM scheme for farmers, Rooftop Solar Programme, and the Green Energy Corridor. For investors, this rapid growth presents a long-term opportunity.
Public sector units like NHPC and private firms like Adani Green Energy and JSW Energy offer varied investment avenues across solar generation, infrastructure, and manufacturing. The rise of ESG (Environmental, Social, and Governance) investing also supports capital flow towards solar companies. Companies involved in green hydrogen, solar battery storage, and solar module manufacturing are likely to benefit the most. Long-term investors can gain from capital appreciation and sustainability-driven growth. Moreover, SEBI’s green bond framework offers additional financial instruments for solar investing. The evolving solar ecosystem in India presents a robust and rewarding opportunity for retail and institutional investors alike.
Features of solar companies listed in NSE
Solar companies listed on NSE offer diverse business models—ranging from solar EPC services and module manufacturing to power generation. These companies often benefit from long-term Power Purchase Agreements (PPAs), ensuring predictable revenues. Many solar firms are asset-light, focusing on technology and services. Some, like Adani Green and JSW Energy, operate integrated models. NSE-listed solar companies are subject to SEBI regulations, ensuring transparency. They also report ESG performance, attracting sustainability-focused investors. Financial disclosures and quarterly updates offer insights into performance and scalability.
How to invest in solar energy stocks in India?
To invest in solar stocks, open a demat and trading account with a registered broker. Use platforms like Zerodha, Upstox, or Groww to search for listed solar companies such as Adani Green, NHPC, or KPI Green Energy. Conduct detailed research using their financial reports, stock trends, and project pipelines. Evaluate metrics like P/E ratio, ROCE, and debt levels. You can also invest via renewable energy mutual funds or green ETFs for broader exposure. Always align investments with risk appetite and goals.
Open a trading account: Begin by setting up a Demat and trading account through a brokerage firm. This allows you to hold and trade solar energy shares electronically.
Research top solar companies and industry trends: Use platforms like Tickertape Stock Screener to identify reputed solar firms with strong financials. Assess government policies, market demand, and the overall regulatory environment.
Evaluate company performance: Analyse financial indicators such as revenue growth, profitability, debt levels, and future projections to determine a company’s long-term investment potential.
Place orders: Purchase solar stocks in India through your broker or directly from the company. Regularly monitor your investments and industry trends to maximise returns.
Who should explore the listed solar companies in India?
Investors with a long-term horizon, ESG interests, and moderate to high-risk tolerance should explore solar companies. These stocks suit individuals aiming for sustainable investing and seeking exposure to India’s energy transition. Solar stocks are ideal for those who understand market cycles and can withstand short-term volatility. Institutional investors and climate-focused funds can also benefit from their growth prospects. Retail investors looking to diversify from traditional sectors like banking or FMCG may find value in emerging solar companies.
Risk of investing in solar industries shares
Solar stocks face regulatory, operational, and market risks. Policy changes, delayed subsidies, or import restrictions can impact margins. Companies relying on global supply chains may suffer from price fluctuations of raw materials like polysilicon. Inconsistent sunlight availability or land acquisition delays may affect project timelines. Financial risks include high debt levels or funding gaps. Stock prices may also react to broader market sentiment. Therefore, proper due diligence and diversification are key before investing in solar industry shares.
Advantages of investing in solar industries shares
Investing in quality solar energy stocks comes with multiple advantages:
- Long-term growth potential: With rising demand for clean energy, solar companies are positioned for sustained expansion. Environmental concerns, supportive policies, and declining technology costs fuel industry growth and profitability.
- Diversification: Including solar stocks in your portfolio spreads risk. Green energy investments across various sectors help cushion against market volatility.
- Positive environmental impact: Solar investments align your financial goals with ecological responsibility, supporting the transition to cleaner energy sources.
- Government support: India's pro-renewable policies—tax incentives, grants, and ambitious energy targets—create a favourable landscape for solar sector growth and investment.
Conclusion
Solar energy stocks in India represent a promising frontier for long-term investors. With robust government support, rising clean energy demand, and climate-focused funding, solar stocks are well-positioned for growth. Listed companies offer diversified exposure across manufacturing, power generation, and storage. While risks exist, thorough research and smart investing can yield strong returns. As India moves towards energy independence and a sustainable future, solar energy stocks are expected to play a pivotal role. Invest wisely to ride this green energy wave.
Check some of the popular stocks today
