In the next few years, India is expected to double its renewable energy capacity additions and expansions, with solar power leading the way as it accounts for the largest share of this growth. It makes solar energy stocks particularly attractive to the average investor looking to generate decent returns in the market and has solid long-term investment goals.
India’s growing electricity demand is fueling the country’s goal of achieving a carbon-free state by 2070, with a target of up to 50% of the country’s electricity production coming from renewable sources by 2030. If you do, there is a high possibility that it will be realised even after it is announced.
With India approaching its goal of $5 trillion in economic growth in the next few years and an unprecedented surge in electricity demand, the country’s solar energy future is bright. In this blog, we will have a closer look at some of the best solar energy stocks to invest in and why you should invest in them as an investor.
Why should you invest in solar energy stocks ?
Here are some of the top reasons investors should invest in solar energy stocks to diversify their portfolios.
Growing market size
As already mentioned, the solar energy market in India is growing rapidly, prices have dropped significantly, and long-term contracts make solar energy even cheaper to generate than coal, making it currently the cheapest source of electricity in India. It is
Solar power stocks can add a much-needed diversification element to portfolios that other traditional energy stocks may offer. It can be a good risk resolving strategy, as solar energy stocks often don’t have direct links to other sectors such as mining & metals, fast-moving consumer goods, and construction.
The pipeline of projects for solar energy businesses is assured to last for decades, as the Indian government will continue to drive growth regardless of who is in power, thanks to India’s long-term international obligations.
Best solar energy stocks to Invest in India
Below is a list of the top solar energy stocks investors can consider investing in the medium to long term.
1) Tata power company
Electricity is produced, transmitted and distributed by Tata Power Company Limited. Thermal, hydropower, solar, and wind power plants are part of the power generation infrastructure.
In addition, the Company provides project management, technical and quality audits, coal and freight logistics, consulting, gas-insulated switchgear hot-spot testing, and operation and maintenance services.
Railroads, ports, refineries, textile and fertiliser factories, municipalities, pumping stations and other important sectors are just some of the huge power consumers that supply electricity.
2) Suzlon Energy
Suzlon Energy Limited provides renewable energy solutions providing a total solution covering all aspects of wind energy projects.
The Company builds, manages, owns and services a diversified portfolio of solar energy systems. The Company also offers complete turnkey solutions from design to asset lifecycle management.
In addition to generating electricity, selling solar modules and providing fully manufactured castings, forgings and cast parts, Suzlon also produces electricity. It also improves planning and forecasting, increases turbine energy yield, and enables proactive monitoring of site conditions.
Suzlon uses SCADA (Supervisory Control and Data Acquisition) technology to monitor over 9,700 wind turbines worldwide remotely.
3) Ujaas Energy
Ujaas Energy Limited is an Indian company specialising in solar energy solutions.nder its flagship brand, UJAAS. The Company operates in four segments.
Manufacture and sell solar power plants, power generation and maintenance, excluding electric vehicles (EVs). The Company’s services include Ujaas Park, Ujaas My Site, Ujaas Home and UJAAS.
Ujaas Park provides a complete turnkey solution for investors interested in becoming solar power operators. This encompasses renewable energy certificates, special tariffs, APPC, and captive mechanisms.
4) Surana Solar
Based in India, Surana Solar Limited is engaged in the manufacture of photovoltaic modules, the generation of wind and solar energy, and the trading of various photovoltaic products.
The business is divided into photovoltaic products and wind power. The Solar Products segment deals with the manufacture and sale of photovoltaic modules. The wind power industry is responsible for generating solar and wind energy.
The Company provides solar lighting, solar lanterns, photovoltaic panels, etc. In addition, the Company’s solar lighting products include home lighting systems and solar street lighting.
InterSolar Systems, renowned since 1997 for promoting solar energy, has earned a reputation as a leading industry influencer.
With a skilled workforce and a focus on attracting young talent, the company pioneers innovation and has emerged as a domestic market leader in solar equipment.
In summary, despite the difficulties, India’s solar energy industry and stocks are still growing.
However, as people become more concerned about the environment, so does the need for renewable energy sources.
Therefore, before investing in solar stocks, check the financial situation of the Company and the development potential of the industry and Company.
Frequently Asked Questions
How can I invest in solar energy stocks?
You can buy stocks directly on the secondary market or invest in industry-specific mutual funds that include such stocks in their portfolios. It will give investors access to a wide range of stocks in the solar energy sector.
What are the top solar energy stocks on the market?
India’s leading solar power companies include Adani Green Energy, Tata Power Company, Ujaas Energy, Websol Energy, WAA Solar, Surana Solar, Intersolar etc.
What is the future outlook for Solar Energy stocks?
The prospects for these stocks are bright, given the Indian government and global green energy drive. The sector is booming and set for long-term growth.