Best Solar Energy Stocks in India for Nov 2024 Based on 5-Year CAGR

India’s solar energy sector is experiencing unprecedented growth, supported by ambitious government goals and increased environmental awareness. With the nation’s push towards sustainable energy, solar energy stocks have become an attractive prospect for investors aiming for long-term growth while aligning with environmental goals.

In this article, we discuss the best solar energy stocks in India for November 2024 and also look at the industry overview.

Best Solar Energy Stocks in November 2024 – Based on 5 Yr CAGR

Note: The stocks mentioned above have been selected from the solar energy sector stocks  and sorted based on 5Y CAGR as of November 5, 2024, 11.32 AM

• Suzlon Energy Ltd.

Suzlon, a pioneer in India’s wind energy sector, ventured into solar energy in 2016, successfully installing 340 MW across multiple states. The company has also registered a 1,500 MW wind-solar hybrid park in Rajasthan. In Q2 FY24, the company reported an annual profit of ₹294 crore, with total sales reaching ₹2,103 crore, up from ₹2,022 crore in Q1 FY24. 

With a strong track record in utility-scale projects, Suzlon is well-positioned to develop innovative solar-wind-storage hybrid projects in collaboration with various state utilities across India.

• Adani Green Energy Ltd.

Adani Green Energy Limited (AGEL) is a leading player in India’s renewable energy sector, dedicated to generating clean energy. The company is involved in the design, construction, ownership, operation, and maintenance of extensive solar and wind power projects, as well as hybrid projects and solar parks integrated with the power grid. 

AGEL boasts a robust project portfolio with a total capacity of 20,434 MW. In Q2-FY24, the company reported a net profit of ₹515 crore. Additionally, promoter holding has increased by 3.43% since the last quarter. 

• Orient Green Power Company Ltd.

Orient Green Power Company Limited operates as an independent renewable energy producer, focusing on the development, ownership, and management of a diverse range of wind energy power plants. 

The company aims to strengthen its position in the renewable sector with a target of achieving 1 GW of installed capacity by exploring a hybrid model that combines wind and solar energy. In Q1-24, Orient Green Power reported an operating profit of ₹40.82 crore, a notable increase from ₹14.28 crore in the previous quarter.

• Borosil Renewables Ltd.

Borosil Renewables specialises in the production of extra clear patterned glass and low iron solar glass, which are used in photovoltaic panels, flat plate collectors, and greenhouses. 

As the leading manufacturer of low-iron textured solar glass in India, the company holds over 20% of the market share. As of Q1 FY25, Borosil operates a manufacturing facility in Bharuch, India, with a production capacity of 1,000 tonnes per day (TPD) and has maintained an average utilisation rate exceeding 90% in FY24.

• Tata Power Company Ltd

Tata Power is heavily invested in India’s solar energy expansion. The company focuses on generating, transmitting, and distributing electricity, with a commitment to achieving complete production from renewable sources. 

The company also manufactures solar roofs and has set an ambitious goal of establishing 1,00,000 electric vehicle charging stations by 2025. Tata Power maintains a robust dividend payout of 22.8%. In Q2 FY24, the company reported a net profit of ₹1,093 crore, alongside total sales of ₹15,698 crore.

Overview of the Solar Energy Industry in India 

1. Global ranking and target: India ranks 5th in global solar power capacity, according to the Renewables 2024 Global Status Report. The country aims to reach 500 GW of non-fossil fuel-based energy by 2030.
2. Installed capacity: By September 2024, India’s renewable energy capacity, including large hydropower, reached 201.45 GW. Solar energy alone contributes 90.76 GW to this total.
3. Development of solar parks: India has approved 50 solar parks with a combined capacity of 37.49 GW, contributing significantly to the national solar infrastructure.
4. Union budget 2024-25: The allocation for the Centrally Sponsored Scheme for Solar Power (Grid) increased to ₹10,000 Cr, up by 110% from ₹4,757 Cr in the previous year’s budget.
5. Production-Linked Incentive (PLI) Scheme: The Union Cabinet, led by Prime Minister Narendra Modi, introduced the PLI Scheme for high-efficiency solar PV modules, aimed at boosting domestic manufacturing and exports.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.