Top 6 Solar Energy Stocks in India to Brighten Your Portfolio in 2024

• Introduction
• The Rise of Solar Power in India
• Top 6 Solar Energy Stocks in India for 2024
• Why Should You Consider Solar Stocks in Your Portfolio?
  • Reflecting on Renewable: The Solar Attraction
  • Factors to Consider Before Investing in Solar Stocks
  • The Bright Side of Environmental Investing
• Conclusion
• FAQs
• Further Reading

Introduction

As the world moves towards sustainability, the clean energy sector is glowing brighter than ever. Solar energy, in particular, has emerged as a vital component of the green energy transition, and India, with its abundant sunshine, is poised to become a powerhouse in this field. In this blog post, we'll ignite your interest in the solar energy market in India by highlighting the key players, their current market standing, and the factors that make this sector a potentially lucrative area for investment in 2024.

The Rise of Solar Power in India

The Indian region gets a lot of sunlight energy, with more than 5000 trillion kWh made from the sun each year. More and more people are starting to use solar power, especially in richer countries that are looking towards the sun for energy. Because of this, it's not surprising that people who want to invest their money are interested in solar energy stocks. They see it as a way to support clean energy and possibly make some money too.

Top 6 Solar Energy Stocks in India for 2024

Exploring the stock market is a bit like using a telescope to figure out which stars will shine the brightest. With solar energy in India, the government is really cheering it on, offering lots of perks and rules to boost solar companies. Here's a quick look at some top solar stocks that are shining brighter than others:

Note All data is as of 22 March 2024.

1. Waaree Renewables Technologies Ltd: Focuses on Solar PV with a primary focus on Solar Pumps, Solar Park, Captive Consumption, Floating Solar, and Rooftop Solar. Offers solutions like floating solar, rooftop solar, and ground-mounted solar project EPC solutions. It is the #1 Indian Module manufacturer.
2. Borosil Renewables Ltd: BRL stands out as India's sole manufacturer of specialized glass used in solar panels and greenhouses, making it a unique player in the market. It has a global footprint, with around 25% of its revenue coming from exports, mainly to Western Europe and Turkey, and it's expanding into the Americas and MENA region. In just five years, BRL dramatically increased its production capacity from 180 tons per day in 2018 to 1350 tons per day in 2023, including output from a recent acquisition in Germany. This acquisition, the Interfloat Group, not only expanded BRL's capacity with a factory in Brandenburg but also upgraded its production to meet higher demand. Despite challenges from cheaper imports, BRL is planning further expansion with new furnaces in Gujarat, aiming to nearly double its capacity by 2025. Additionally, BRL is investing in renewable power, including a significant agreement to secure a green energy supply and acquire a stake in a power company.
3. Gensol Engineering Ltd: Engaged in Solar consulting & EPC, Gensol operates in segments including EPC for solar power (installation, operation, and maintenance), as well as monitoring and analysis. It has also ventured into EV Manufacturing with a facility in Pune and offers comprehensive EV leasing solutions, alongside achieving significant growth in revenue and order bookings particularly in the EPC segment.
4. Adani Green Energy Ltd: Part of the Adani Group, focuses on renewable energy, specifically solar, with projects both operational and under construction. Major activities include power supply from solar energy, trading of goods, and partnerships for expansion in the renewable sector. The company has a significant portfolio of power supply agreements and has taken steps for future growth through acquisitions and partnerships, like with TOTAL SA, and plans major investments in renewable energy development.
5. KPI Green Energy Ltd: Operating under the KP Group, KPI Green Energy specializes in developing, owning, and managing renewable power facilities as an Independent Power Producer (IPP) and an Engineering, Procurement, Construction (EPC) service provider to Captive Power Producers (CPPs). Their business spans across providing solar power through third-party sale business, developing grid-connected solar power projects, and offering operation & maintenance services. The company has a considerable order book and has commenced operations in hybrid power projects as well, showing a robust clientele and a significant gain in market cap, supported by substantial returns over the past year and ambitious sales growth.
6. Sterling & Wilson Renewable Energy Ltd: A global pure-play, end-to-end solar EPC solutions provider, Sterling & Wilson Renewable Energy Limited (SWREL) is a subsidiary of the Shapoorji Pallonji Group. The company has a global presence with operations in 26 countries and a strong order book. SWREL has a diversified portfolio of solar projects across geographies and has a strong track record of project execution. The company has a robust financial performance and has been able to maintain its growth trajectory despite the challenges posed by the pandemic.

Note There are several other solar energy companies in India that are making significant strides in the sector. The companies listed above are based on the data available as of 22 March 2024 and are not an exhaustive list of all solar energy companies in India.

Why Should You Consider Solar Stocks in Your Portfolio?

Reflecting on Renewable: The Solar Attraction

• Government Backing: India has launched several initiatives to boost solar energy, from solar parks to rooftop programs and more. The government favors an upsurge in off-grid solar projects, with the Union Budget amplifying allocations.
• Global Acceptance: The world over is shifting to renewables, with solar energy at the forefront. India houses several projects aimed at leveraging its sunny disposition, an attractive prospect for the global investor community.
• Fiscal Forecasts: The energy landscape forecasts immense growth, particularly in solar. Investors are excited about the potential returns from a sector bolstered by technology advancements and cost efficiencies.

Factors to Consider Before Investing in Solar Stocks

Before jumping into solar stocks, consider:

• Policy Influence: Does the government back renewable enough to sway market sentiment towards solar investments?

• Economic Diversity: How does investing in solar fit into your wider portfolio? Is it a sunbeam of diversification or too much of a niche play?

• Traditional Energy's Challenge: Can solar hold its own against conventionals like coal and oil in the energy mix?

• Market Fluctuations: Are you prepared for the potential vicissitudes that global economic uncertainties may bring to solar stocks?

The Bright Side of Environmental Investing

• Growth Horizon: Solar energy’s trajectory is ascending. Betting on these stocks could lead investors to a sunrise of returns.

• Green Impact: Investing in solar is more than a financial decision; it's an environmental stance, underpinning one’s commitment to sustainable development.

• Potential Profits: As with any emerging technology, early investments in solar could yield sun-baked profits for the pioneering investor.

Conclusion

The solar sector is no longer on the horizon – it's here, offering a gilt-edged opportunity. It's not just about environmental brownie points; it's a legitimate and potentially lucrative market sector. Investors prepared to ride the wave of renewable energy transformations may find solar energy stocks an illuminating addition to their portfolios. Harness the power of the sun and let your investments shine with the promise of a renewable future.

FAQs

Q: Is now a good time to invest in solar stocks?

A: Momentum for solar is strong, with government initiatives and a global shift towards renewables. However, always conduct thorough research and consider consulting a financial advisor.

Q: Who should consider investing in solar energy stocks?

A: Investors with a keen eye on renewable energy resources and those understanding the risks and complexities of the energy market might find solar stocks a potent addition to their investment strategy.

Q: What is the largest solar project in India?

A: The Bhadla Solar Park in Rajasthan claims the title, sprawling over the Thar Desert, it underscores India's solar ambitions.

Note The data and information provided in this article are for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions.

Further Reading

Vikram Solar: Vikram Solar IPO Analysis