The solar energy sector is rapidly transforming the global energy scene, with India playing a key role in the shift to clean and sustainable power. As the world turns towards renewable energy, India’s solar market is expected to grow significantly, driven by its goal of installing 500 gigawatts (GW) of renewable energy capacity by 2030.
This growth is fueled by ongoing advancements in solar technology, large investments in infrastructure, and strong policies aimed at reducing carbon emissions. With solar energy becoming a central part of India’s renewable energy strategy, the country is poised to take a leading role in global efforts for a sustainable, low-carbon future.
Now, let’s take a look at the top solar energy stocks in India for January 2025, focusing on companies that have shown the best 5-year CAGR performance.
| Name | Market Cap (₹ Cr) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Suzlon Energy Ltd | 87,154.64 | 131.98 | 101.97 | 73.06 |
| Jaiprakash Power Ventures Ltd | 12,733.73 | 12.46 | 70.22 | 33.19 |
| Adani Green Energy Ltd | 1,63,891.92 | 148.99 | 48.8 | -35.34 |
| SJVN Ltd | 43,137.36 | 47.33 | 34.76 | 19.9 |
| NHPC Ltd | 82,399.42 | 22.73 | 28.08 | 26.98 |
Note: The best solar energy stocks list here is as of December 24, 2024. The stocks are sorted based on the 5Y CAGR.
Suzlon is a leading global provider of renewable energy solutions, specialising in wind energy. It is a fully integrated manufacturer of wind turbine generators (WTGs) and handles the installation and maintenance of all its wind turbines.
In Q2 FY25, Suzlon reported a revenue of ₹1,412.14 crore, a slight decrease from ₹1,480.02 crore in June 2024. For the full financial year 2023-24, the company achieved a revenue of ₹3,860.25 crore. Net profit for September 2024 stood at ₹83.72 crore, lower than ₹121.14 crore in the previous quarter. However, the company’s net profit for the entire FY23-24 was ₹93.43 crore.
Key metrics:
Jaiprakash Power Venture Limited, established in 1994, is involved in coal and sand mining, cement grinding, and the generation of thermal and hydroelectric power.
In Q2 FY25, Jaiprakash Power Venture Limited reported a revenue of ₹1,226.41 crore, a decrease from ₹1,754.70 crore in the previous quarter. Net profit stood at ₹182.11 crore, down from ₹348.48 crore in Q1 FY24. For FY23-24, the company achieved a total revenue of ₹6,762.78 crore and a net profit of ₹686.10 crore.
Key metrics:
Adani Green Energy Limited, established in 2015, is a parent company that oversees several subsidiaries engaged in renewable power generation. The company focuses on generating renewable energy and other related activities.
In Q2 FY25, the company reported a revenue of ₹3,937 crore, up from ₹3,383 crore in the last quarter. However, it posted a net profit of ₹99 crore, a significant improvement from a net loss of ₹89 crore in the previous quarter. For FY23-24, the company recorded a total revenue of ₹12,001 crore, but it still faced a net loss of ₹546 crore.
Key metrics:
SJVN is involved in electricity generation and offers consultancy services for hydropower projects. In August 2024, the company was granted Navratna status.
In the Q2 FY25, the company reported a revenue of ₹994.51 crore, up from ₹831.73 crore in June 2024. Its net profit for the quarter stood at ₹473.06 crore, a significant increase compared to ₹327.15 crore in the previous quarter. For the FY 2023-24, the company achieved a revenue of ₹2,533.59 crore and a net profit of ₹908.40 crore.
Key metrics:
NHPC, a Mini Ratna Category I public sector company, is the Government of India’s leading hydroelectric power generation firm. The company mainly generates and sells bulk electricity to various power utilities. It also offers project management, construction contracts, consultancy services, and engages in power trading.
For the Q2 FY25, NHPC reported a revenue of ₹2,551.21 crore, compared to ₹2,417.88 crore in June 2024. The net profit for the quarter was ₹905.25 crore, slightly lower than ₹1,023.51 crore in the previous quarter. For the FY 2023-24, the company posted a revenue of ₹8,404.92 crore and a net profit of ₹3,743.94 crore.
Key metrics:
Solar energy stocks are shares of companies involved in the production, installation, or distribution of solar energy products or services. These companies primarily manufacture solar panels, inverters, and other components. Some also install, maintain, and monitor solar energy systems, making them key players in the industry. With India’s growing solar energy market, investing in these stocks offers exposure to the rapidly expanding renewable energy sector.
The 2024-25 Union Budget introduced several initiatives beneficial to the solar sector:
India targets 500 GW of renewable energy by 2030, with solar energy playing a crucial role. Investing in solar stocks aligns with this goal, offering growth potential. With favourable policies, rising demand, and technological advancements, solar energy stocks in India remain an attractive investment.
India has set ambitious goals to reduce its carbon intensity by 45% by 2030, source 50% of its electricity from renewables, and reach net-zero emissions by 2070. By 2040, nearly half of the country’s electricity is expected to come from renewable sources, driven by improvements in battery efficiency and a 66% drop in solar energy costs. Transitioning from coal to renewables could save India around Rs. 54,000 crore (about $8.4 billion) annually.
From 2020 to 2025, India plans to add around 15,000 MW of wind-solar hybrid capacity. According to the Central Electricity Authority (CEA), the share of renewables in India’s electricity generation will rise from 18% to 44% by 2029-30, while the share of thermal power will decrease from 78% to 52%. Additionally, India’s power demand is expected to grow to 817 GW by 2030.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 24, 2024, 2:36 PM IST
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