India has made great progress in implementing clean and sustainable energy solutions in the last few years. Solar energy is one industry that has led the way in this green revolution. Given its plentiful solar radiation and increasing electricity consumption, India offers a favorable environment for solar energy ventures. We’ll look at the Solar Energy Stocks in India right now.
What are Solar Energy Stocks in India?
Businesses in the solar energy industry create and install solar energy harvesting and electricity generating devices. Their main goal is to replace fossil fuels, such as natural gas and oil, with renewable energy sources, such as wind and sun. This is undoubtedly a difficult transition that may take some time.
What is the future for Solar Energy Stocks in India?
Numerous businesses are entering this market due to the benefits of not negatively affecting the ecosystem. Large corporations such as Tata Power and Reliance Industries are also involved in the game, through their respective subsidiaries, Tata Power Solar and Reliance New Energy Solar Ltd. India aims to source half of its electricity from renewable energy sources by 2030. Most businesses are entering the solar energy market as a result of this.
Notably, the Indian government is providing Rs. 19,500 cr. under the Production Linked Incentive (PLI) scheme, which was mentioned in the Union Budget 2022–2023—to encourage the development of highly efficient solar modules. All things considered, as India transitions to sustainable energy sources, there may be a greater need for businesses in this industry.
List of Solar Energy Stocks in India (2023)
| Stocks name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio (%) | 1M Return (%) | 5Y CAGR (%) |
| Websol Energy Systems Ltd | Renewable Energy Equipment & Services | 540.64 | 139.35 | -22.82 | 25.20 | 27.41 |
| Ujaas Energy Ltd | Renewable Energy | 52.08 | 2.60 | -2.98 | 23.81 | -24.43 |
| Suzlon Energy Ltd | Renewable Energy Equipment & Services | 32,593.14 | 24.00 | 11.44 | 18.81 | 30.26 |
| Waa Solar Ltd | Renewable Energy | 119.85 | 90.34 | 12.18 | 11.93 | 24.26 |
| Gita Renewable Energy Ltd | Renewable Energy | 53.25 | 129.50 | 6.78 | 5.97 | 90.15 |
| Urja Global Ltd | Renewable Energy Equipment & Services | 541.22 | 10.30 | 356.06 | 1.48 | 26.74 |
| Surana Solar Ltd | Renewable Energy Equipment & Services | 119.33 | 24.25 | 52.34 | -2.22 | 18.22 |
How to invest in Solar Energy Stocks in India via small case?
- Let’s go over some actions you can take if you want to use Smallcase to invest in solar energy stocks.
- Enter your password on the small case app or website after logging in with any Indian small case broker.
- View the Niveshaay-managed small case on green energy.
- Before submitting an order, check your billing information and personal information. Click “Invest now” after that.
- Finally, select a payment method: one-time or monthly SIP.
- Lastly, select “Confirm Orders.”
Factors to Consider Before Investing in Solar Energy Stocks in India
- Government Policies and Incentives: The expansion and financial success of India’s solar industry shares can be strongly influenced by government regulations and incentives. These regulations have improved the climate for solar energy equipment and increased the supply of solar energy.
- Competition from Traditional Energy Sources: Shares of the solar industry are up against competition from conventional energy sources like gas, oil, and coal. India continues to use these energy sources extensively. Consequently, changes in the price of solar shares could have an effect on solar energy stocks.
- Portfolio Diversification: When investing in the stock market, diversification of one’s portfolio is essential, and this also applies to the solar industry. One can evaluate the possible impact of adding solar stocks and diversify a portfolio by investing in solar stocks in India.
- Global Economic Conditions: The state of the world economy may impact solar industry shares. For instance, the COVID-19 pandemic has affected the solar industry’s supply of raw materials and components, upending global supply chains and temporarily lowering solar energy stocks.
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