Top 10 Green Energy Stocks in India for 2024 (2024)

Last Updated on Aug 30, 2024 by Aishika Banerjee

The world is slowly moving towards sustainable solutions for everything, even energy. Subsequently, the renewable energy sector has grown significantly over the past year, with over 15 Indian renewable energy stocks jumping more than 100%.

India, in particular, is at the forefront of this shift. The country has set ambitious goals to generate 50% of its electricity from non-fossil fuels by 2030 and achieve ‘net zero’ emissions by 2070. To reach this target, India prioritises clean energy initiatives with aggressive plans.

As a result, many companies are stepping up their efforts to contribute to a more sustainable planet. Several Indian companies are leading their way with green energy. In this article, let’s look at the top green energy stocks in India, the benefits and risks of investing in them, factors to consider before investing, and more.

List of Top 10 Green Energy Stocks in India

Note: The list of the best green energy stocks, with green energy stocks prices, is sorted by their 5-year Return on Investment (High to Low). The data is as of 26th August, 2024.

• Stock universe – Renewable energy
• 5Y Avg Return on Investment – Sorted from Highest to Lowest

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Did you know that you can invest in readymade green energy stock portfolios managed by SEBI-registered experts?

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Among 500+ smallcases, here are some of the top green energy smallcases:

Green Energy smallcase by Niveshaay

Electric Mobility smallcase by Windmill Capital

Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Disclosures for Green Energy smallcase

Disclosures for Electric Mobility smallcase

About the Top 10 Green Energy Stocks in India

Here is a brief overview of the top 10 green energy stocks in India on our green energy stocks list with price:

KP Energy Ltd

KP Energy is a small-cap green energy company in India that builds windmill infrastructure to develop geothermal energy. Over the last 5 years, the company’s revenue has grown at a yearly rate of 25.04%, higher than the industry average of 10.99%. This is one of India’s highest recorded growths in the list of green energy stocks in India. Furthermore, the stock has gradually increased its market share from 0.3% to 1.31% during the same period. Based on a 5-year return on investment, it is also one of India’s top renewable energy stocks, as demonstrated on our renewable energy stocks India list. Check out the stock evaluation on the Tickertape Scorecard here.

BF Utilities Ltd

BF Utilities Ltd is a holding company based in India. It is principally engaged in generating electricity through renewable energy: windmills and infrastructure. As of 26th 2024, the company has a market capitalisation of Rs. 3,078.76 cr., and its share price closed at Rs. 809.70. The company has a 5-yr average return on investment (ROI) of 14.26, its return on equity (ROE) is 42.55%, and its cash flow margin is 56.21%. Check out more about the company stats here!

KPI Green Energy Ltd

KPI Green Energy is a solar energy generation company catering to solar power needs through various business verticals. Over the last 5 years, the company’s revenue has grown at a yearly rate of 88.05%, higher than the industry average of 10.99%, and its market share increased from 0.2% to 2.84%. Furthermore, the company’s net income has grown at a yearly rate of 78.55%, also higher than the industry average of 17.52%, in the same period. As per the Tickertape Scorecard, the stock represents a positive trend in profitability and growth. Check out the overall stock analysis on Tickertape by clicking here!

SJVN Ltd

SJVN Ltd, formerly known as Satluj Jal Vidyut Nigam, is an Indian PSU company that produces and transmits hydroelectric power. This midcap stock has recently experienced a decrease in market share from 13.28% to 9.74% over the past five years. Notwithstanding, the Tickertape Scorecard for this green energy company exhibits a positive trend in its performance and profitability, with a 5-yr average ROI of 9.84, an ROE of 10.06%, and a net profit margin of 30.79%. Check out more details about this company’s past performance here.

KKV Agro Powers Limited

KKV Agro Powers Limited is an Independent Power Producer (IPP) and a renewable power generation company based in Coimbatore. As of 26th August 2024, the smallcap company has a market capitalisation of Rs. 44.32 cr. Over the last 5 years, the company’s revenue has grown at a yearly rate of 181.86%, higher than the industry average of 10.99%, and its market share increased from 0.04% to 4.28%. Check out more about the company’s past profitability trends and performance in general on the Tickertape Scorecard.

Orient Green Power Company Ltd

Orient Green Power Company Ltd is an Indian stock holding that produces renewable energy using wind as an energy source. As of 26th August 2024, this smallcap company has a market capitalisation of Rs. 2,590.05 cr. The company has a net profit margin of 12.93%, and a cash flow margin of 83.99%. It is showing good signs of profitability and efficiency, with a score of 10/10 in terms of cash flow and a high score of 8.1/10 in terms of profit on the Tickertape Scorecard. Click here to learn more about the stock’s past performance in the stock market only on Tickertape!

WAA Solar Ltd

WAA Solar Ltd is an Indian holding company involved in solar power generation. It invests in Special Purpose Vehicle (SPV) associates and other subsidiary companies and sets up solar-powered projects. The company’s performance on the Tickertape Scorecard exhibits positive annualised returns, with a 5-year CAGR of 65.75%. It also has a net profit margin of 24.24%, a cash flow margin of 77.28%, and a 5-yr average ROI of 7.03. Get a more detailed stock evaluation on the Tickertape Scorecard now!

Energy Development Company Ltd

Energy Development Company generates and transmits electric energy produced through hydroelectric power. As of 26th August 2024, the smallcap company has a market capitalisation of Rs. 134 cr., and its share price closed at Rs. 28.61. The company has a cash flow margin of 45.17%, a 5-yr return on investmen of 6.80, and a 5-yr CAGR of 44.34%. Check out more about the company’s past performance here on Tickertape!

Adani Green Energy Ltd

Adani Green Energy Ltd is one of India’s largest renewable energy companies, with a market cap of Rs. 2,98,803.97 cr., and falls under the Adani group of companies. It has exhibited high annualised returns, with a 5-yr CAGR of 112.52%. Over the last 5 years, the company’s revenue has grown at a yearly rate of 38.22%, higher than the industry average of 10.99%, and its market share increased from 9.82% to 29.57%. Check out more on the Tickertape Scorecard here!

NHPC Ltd

NHPC Ltd is an Indian PSU company involved in hydropower generation. It was founded in 1975 and has been dedicated to planning, promoting and organising an integrated and efficient development of hydroelectric power. Over the last 5 years, the company’s debt to equity ratio has been 69.39%, lower than the industry average of 120.68%. Additionally, the company’s current ratio has been 137.15, higher than the industry average of 105.97 in the same period. Learn more about this stock by evaluating it’s Tickertape Scorecard here.

Green Energy vs Renewable Energy

Green energy is an umbrella term for all renewable energy sources that emit little to no pollution. Though ‘green energy’ and ‘renewable energy’ are often used interchangeably, one essential difference exists between them. While green energy sources are considered renewable, not all renewable energy sources are considered entirely green.

For example, solar power is a green and renewable energy; burning wood is renewable because you can grow more trees, but it is not green, as it pollutes the atmosphere. Green energy is a subset of renewable energy.

If you are wondering what the best renewable energy stocks in India are, click here.

What are Green Energy Stocks?

Green energy stocks are companies involved in developing alternative technologies with renewable resources that emit little to no pollution. The most prevalent sources of green energy include sunlight, wind, and heat. They can also include low-impact hydroelectric sources and specific forms of biomass. Companies that work towards creating no carbon emissions with these resources and reducing the use of fossil fuels are considered green energy companies.

Types of Green Energy Stocks

Numerous green energy stocks are available in India for investors to choose from. Here, we’ve highlighted a few key categories of green energy stocks you can buy from the bourses.

• Clean Energy Stocks: Green energy stocks that are engaged in producing and delivering clean, renewable energy sources like solar, wind, hydro, geothermal, and bioenergy are called clean energy stocks
• Solar Energy Stocks: Green energy companies that focus on producing energy through solar energy are called solar energy stocks. Also, solar energy companies are considered companies that manufacture solar panels and offer installation services for solar power projects on residential, commercial and utility scales.
• Wind Energy Stocks: Renewable energy shares involved in producing or installing wind turbines. The stocks of these green companies are called wind energy stocks.
• Hydro Energy Stocks: Companies that manage hydroelectric power stations, which are used to leverage natural water flow to generate electricity. The stocks of these green companies are called hydro energy stocks.
• Geothermal Energy Stocks: It is a form of green energy company that encompasses companies involved in developing geothermal power plants, utilising the Earth’s natural heat to produce electricity.
• Bioenergy Stocks: Renewable energy companies capable of producing and supplying biofuels like ethanol and biodiesel and operating biomass power plants using organic materials are qualified as renewable energy stocks in India.

Benefits of Investing in Green Energy Stocks in 2024

Considering the government’s long-term plans, which include reaching a non-fossil energy capacity of 500 GW and meeting 50% of the energy requirements from renewable energy by 2030, it is evident that the government is taking substantial steps towards a more sustainable and environmentally friendly energy landscape. Here are some of the reasons to invest in green energy stocks in 2024 –

• Booming Sector: The government has introduced new initiatives that propel the green energy sector upward. As a result, many green energy stocks have fared relatively well, with many stocks recording double-digit growth.
• Eco-Friendly: Green energy is produced from sources such as solar, wind, and hydro, which are eco-friendly.
• Reducing Carbon Footprints: As India aims to reduce the projected carbon emissions by one billion tonnes by 2030, adopting green energy is a pivotal step towards minimising carbon emissions.
• Portfolio Diversification: Adding green energy stocks to your portfolio can minimise the risk associated with your portfolio.
• Incentivised by Government: With global governments rolling out incentives and subsidies, green energy stocks stand out as appealing investment avenues.

How to Invest in Green Energy Stocks?

You can go through the following steps to get an understanding of how you may approach green energy stock investments:

• Research the renewable energy stocks that interest you: Investors can examine the top 10 green energy stocks listed above further.
• Evaluate the stock price and analytics: Investors can look at the green energy shares list and their share prices to get an idea of their different market valuations.
• Selection of stock types: Investors may choose clean energy stocks based on their investment objectives and risk appetite. Green energy stocks can range mostly from mid-cap to high-cap with differing potential returns and risk profiles.
• Analysing financial health and position: Analysing financial reports, market performance, and future growth prospects of chosen green energy firms provides insights into their stability and growth potential. This analysis enhances comprehension of the green energy portfolio’s performance and outlook.
• Use advanced tools: Tickertape Stock Screener empowers you to craft a personalised ‘Custom Universe’ for streamlined analysis of renewable energy stocks. With over 200 filters, tailor your criteria to refine your list effortlessly. Additionally, investors may utilise the ‘Custom Filter’ option to craft your unique parameters. You can begin building your green energy universe today for insightful analysis!

Risks of Investing in Green Energy Stocks

There are certain risks associated with investing in green energy stocks:

1. India heavily relies on thermal energy, particularly coal-based power, which accounted for 75% of energy generation in FY 2022-2023. This reliance is due to the widespread availability and affordability of fossil fuels, making an immediate shift to alternative energy sources challenging.
2. Renewable energy production and distribution challenges extend beyond generation to maintenance, distribution, and storage. Solar and wind energy, the main sources of green energy, are intermittent and dependent on sunlight and wind availability. This irregularity complicates reliable power distribution, impacting investments in even the best green energy stocks in India.
3. Meeting peak energy demands, particularly during evening hours, poses difficulties due to India’s fluctuating demand patterns. This inconsistency creates challenges in maintaining a stable energy supply and is a significant issue in the country’s energy landscape.
4. Solar and wind energy’s intermittency and seasonal variations contribute to an uneven supply of clean energy, hindering the establishment of a reliable energy grid. This can affect the performance of even the best energy stocks in India.
5. Despite the potential of energy storage solutions, such as batteries, current cost inefficiencies impede widespread adoption. Further advancements and cost reductions are necessary for sustainable integration into the renewable energy sector.

However, there is optimism regarding the potential of batteries as sustainable storage options. Technological advancements and improved infrastructure could lead to cost-efficient and scalable battery storage solutions, facilitating India’s transition to a greener energy future. AK Saxena of TERI suggests that by 2030, renewables could account for 42% of India’s energy supply.

Union Budget Allocations for the Green Energy Sector in India for FY 2024-25

India’s Finance Minister, Nirmala Sitharaman, presented the interim Budget for 2024-25 on 1ST February 2024, with a focus on key allocations and targets in the climate and energy sectors. While the Budget avoided major announcements, it outlined several important measures, particularly in the green energy sector:

Energy, Climate, and Environment Sector

• The Ministry of New and Renewable Energy’s budget increased to Rs. 19,100 cr. in 2024-25, up from Rs. 7,848 cr. in the previous year.
• Funding for grid-based solar power nearly doubled to Rs. 10,000 cr., compared to Rs. 4,757 cr. in 2023-24.
• A rooftop solar programme aims to provide 300 units of free electricity per month to 10 million households.
• Wind power allocation saw a slight rise to Rs. 930 cr., with viability gap funding introduced for 1 gigawatt (GW) of offshore wind energy, boosting wind power stocks.
• Coal gasification and liquefaction projects are planned to reach 100 tonnes capacity by 2030.
• The National Green Hydrogen Mission’s funding increased sixfold to Rs. 600 cr. from the previous year’s Rs. 100 cr.
• The Ministry of Environment, Forests, and Climate Change received Rs. 3,265.53 cr., a modest increase from Rs. 3,079.4 cr. last year.
• The Ministry of Power’s allocation decreased slightly to Rs. 20,502 cr. for FY25 from Rs. 20,671 cr. in FY24.

Electric Vehicle Sector

• The Budget did not mention the FAME scheme, though Rs. 2,671 cr. was allocated to it, down from Rs. 4,807 cr. last year.
• The production-linked incentive (PLI) scheme for automobiles and auto components saw a significant increase to Rs. 3,500 cr., a 624% rise from the previous year’s allocation.
• The focus appears to be on supply-side measures, with reduced customs duties on critical minerals for EVs. However, concerns remain about the impact of reduced EV subsidies on two- and three-wheeler sales.

Petroleum and Natural Gas Sector

• Rs. 498 cr. was allocated for the development of pipeline infrastructure for compressed biogas.
• Rs. 150 cr. was designated to enhance biomass collection, improving feedstock availability for biofuels.
• New allocations of Rs. 332 cr. and Rs. 388 cr. for Mission Anveshan and extended continental shelf appraisal signal a focus on expanding oil and gas reserves.

This Budget indicates a shift in priorities for India’s energy transition, emphasising energy storage, nuclear energy, and waste-based biofuels.

Factors to Consider Before Investing in Green Energy Stocks

• Government Policies: With government policies subject to change (either increase or decrease of investment in sectors), analyse the current government policies around green energy companies.
• Innovation: Identify companies looking to scale their production by integrating new-age tools or technology to produce green energy.
• Competition: Identify companies with a competitive edge in the green energy sector and carefully analyse them before investing.
• Risk: You can identify risks associated with the top renewable energy companies in India by checking the Red Flags on the Tickertape Scorecard.

Conclusion

With the world slowly shifting towards sustainable solutions, green energy is capturing everyone’s attention. Like always, a shift in consumer demand brings up new opportunities, old companies shift to a new way, and new companies emerge; the same can be expected for the energy sector. Investors must conduct their own research and remember to consult a financial expert before making any investments. You can also research the Tickertape stocks/mutual funds screener. With over 200 filters, custom filters, pre-built screens, custom universes, a linking watchlist, export data, and more features, Tickertape Stock Screener can be your go-to destination for stock analysis and research!

Frequently Asked Questions on Green Energy Stocks