Green Energy Stocks: Invest in Renewable Shares in India 2024 (2024)

Green energy stocks and top renewable energy stocks in India are rapidly gaining momentum. The country is pushing towards achieving its target of 450 GW renewable energy capacity by 2030. Since India is the world’s third-largest energy consumer, investors are slowly recognizing its growth potential.
Therefore, keep reading to understand more about green energy vs renewable energy, top green energy stocks and how investors can invest in renewable energy shares in India.

Why Switch to Green Energy?

Imagine a world where the sky is crystal clear, the air is crisp, and the natural beauty of our planet is preserved. A world where we don’t have to worry about the harmful effects of fossil fuels and can enjoy an abundance of renewable and clean energy sources that are affordable and accessible.

This is the world we can create if we switch to green energy. By adopting clean and renewable energy sources such as solar, wind, and hydropower, we can significantly reduce our carbon footprint and mitigate the effects of climate change. Investing in renewable energy can be better for our environment as it is more sustainable, cost-effective, and reliable than traditional energy sources.
Therefore, by switching to green energy, we can create a brighter and more sustainable future for ourselves and future generations. It’s time to take action and switch to green energy – for the planet, health, and future by investing in green energy stock portfolio.

Green Energy vs Renewable Energy

Green energy refers to renewable energy sources that produce minimal pollution. While people often use “green energy” and “renewable energy” interchangeably, there’s a crucial distinction. While all green energy sources are renewable, not all renewable sources are entirely green. For instance, solar power is both green and renewable, while burning wood is renewable but not green, as it contributes to air pollution. Green energy is a subset of renewable energy.

What are Green Energy Stocks?

Clean and renewable energy stocks are like the superheroes of the stock market.

They are eco-friendly, planet-saving champions that harness the power of the sun, wind, and water to generate electricity without harming the environment. Additionally, these best green energy penny stocks in renewable energy in India represent the best renewable energy companies in India, potentially specialising in clean energy technologies such as solar panels, wind turbines, and hydroelectric dams. Thus, investing in these best renewable energy stocks can be a wise financial decision and a responsible choice to support the transition towards a greener and more sustainable future.

However, if you want to be a part of the renewable energy revolution, investing in a renewable energy share in India can be a good investment.

How Do You Identify Green and Renewable Energy Investments?

Several green investments target a basket of top renewable energy companies in India that are deeply invested in sustainable development in the renewable energy sector in India, like the best solar energy stocks India.

In smallcase, we have green portfolios comprising the largest renewable energy companies in India that primarily focus on renewable energy sources in India. Thus, investors can analyse renewable energy, green technology, and eco-friendly practices. Afterwards, investors can consider their environmental, social, and governance (ESG) performance to make an informed investment decision.

Types of Green Energy Stocks

Although there are many other green energy stocks in India, we have categorised some direct green energy stocks that are listed below:

• Clean Energy Stocks: Green energy penny stocks in India represent companies producing and providing clean and renewable energy sources like solar, wind, hydro, geothermal, and bioenergy.
• Solar Energy Stocks India: Solar Energy Stocks India are primarily solar energy stocks, including renewable energy companies in India that produce solar panels and provide installation services for residential, commercial, and utility-scale solar power projects.
• Wind Energy Stocks in India: The best renewable energy stocks in India are primarily composed of wind energy stocks or companies in India, including renewable energy companies in india that produce wind turbines and provide installation services for onshore and offshore wind farms. These wind energy stocks make great green energy shares for investments.
• Hydro Energy Stocks: Green energy companies in India operate hydroelectric power plants that can generate electricity from natural water flow.
• Geothermal Energy Stocks: Green energy companies in India develop geothermal power plants that can generate electricity by harnessing the earth’s natural heat.
• Bioenergy: Green energy companies in India that can potentially produce and distribute biofuels, such as ethanol and biodiesel, and operate biomass power plants from organic matter.

Best Green Energy Stocks in India (2024)

Here is the list of the top green energy stocks in India and green energy share price in India:

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on the top green energy companies in India in the list is from 18th March, 2024. However, for real-time updates on green energy share prices and market trends, visit the smallcase stocks collection today!

Top 10 Renewable Energy Companies in India: An Overview

Here is the list of top 10 green energy stocks India from the renewable energy sector in India from our curated green energy stocks list mentioned above:

KP Energy Ltd

KP Energy is a key balance of plant (BoP) solutions provider for wind energy projects in Gujarat, India. Their services encompass EPC, operation and maintenance, and asset management, with a successful track record of over 1 GW of wind energy projects. It is one of the top green energy stocks India on our list.

BF Utilities Ltd

BF Utilities Ltd. is a small-cap wind energy stock in India established in 2000. It generates electricity through windmills and is also involved in infrastructure projects. Bharat Forge Ltd. primarily uses its wind power. It holds subsidiaries like Nandi Highway Developers Ltd. and Nandi Infrastructure Corridor Enterprises Ltd., which manage highway and expressway projects.

Zodiac Energy Ltd

Based in Ahmedabad, Gujarat, Zodiac Energy is an experienced player in the renewable energy market sector. It offers solar power system design, wind power project development, and EPC services. With a strong track record, it has completed over 1,000 MW of renewable energy projects, making it one of the best green energy stocks India for 2024 investment in renewable energy.

KPI Global Infrastructure Ltd

KPI Green Energy, a Gujarat-based renewable energy company, develops, builds, owns, and maintains solar power plants. It operates under the brand name Solarism and caters to both independent and captive power producers. Founded in 2008, it aims to achieve 1000+ MW in solar energy production by 2025. It has recently expanded into hybrid energy solutions as well.

SJVN Ltd

SJVN Ltd., formerly known as Satluj Jal Vidyut Nigam. ,s a major Indian government-owned company in the hydropower sector. Founded in 1988, it’s known for operating India’s largest hydropower plant (Nathpa Jhakri) and has a total hydropower capacity exceeding 1900 MW. It is a mid-cap green energy stock in India. Present in the renewable energy share list, the company has also diversified into wind and solar power generation with a growing portfolio.

KKV Agro Powers Ltd

KKV Agro Powers Limited is a renewable energy company based in Coimbatore, India. It focuses on developing, owning, and operating solar and wind farms to generate electricity. Its total installed capacity is around 10.6 megawatts, with most being wind energy and the remainder solar. The company operates in Tamil Nadu and sells the electricity it generates.

Orient Green Power Company Ltd

Orient Green Power Company Ltd is a leading Indian renewable energy company focused on wind power generation. Established in 2006, it manages a portfolio of over 402 MW wind assets across several Indian states and even has a wind farm in Croatia. It aims to expand its renewable energy projects and contribute to sustainable development.

WAA Solar Ltd

WAA Solar Ltd. is an Indian company that generates solar power. It sets up its own solar power plants and also invests in other companies doing solar projects. It’s planning to expand into engineering, procurement, and construction (EPC) services for solar projects. Considered one of the top solar energy stocks in India, it is part of the Madhav Corp. conglomerate, which focuses on renewable energy, infrastructure, and real estate.

Energy Development Company Ltd

Energy Development Company Ltd (EDCL), founded in 1995, is an Indian firm in the power sector. It is a small-cap company present on the renewable energy share list. It generates clean electricity from hydro and wind power plants, with a current capacity of 19 MW. Additionally, they develop energy and infrastructure projects for other companies. They have plans to significantly increase their hydroelectric power generation capacity in the coming years.

NHPC Ltd

NHPC Ltd., formerly known as the National Hydroelectric Power Corporation, is a leading Indian public sector company in the power industry. Established in 1975, it focuses on hydropower generation and recently expanded into solar, wind, and other renewable energy sources. As the largest hydropower organisation in India, NHPC manages the entire hydroelectric project lifecycle, from concept to commissioning.

While the list of renewable energy companies in India is endless, conduct thorough research and consider your risk tolerance before making any investment decision.

Why Invest in Green Energy Stocks?

Global energy demand is on a steady upward trajectory, projected to surge by almost 50% by 2050, fueled by emerging economies and developing nations. Simultaneously, scientists warn of escalating temperatures attributed to greenhouse gasses like carbon dioxide. The looming rise of over two degrees Celsius prompts nations to explore alternatives to fossil fuels, creating a market niche for investors keen on green energy opportunities.

Union Budget 2023-24: Green Energy Stocks Take a Hike

“Green growth” refers to a sustainable approach to economic development that minimises the impact of economic activities on the environment, as per the Ministry of New and Renewable Energy—Government of India. Thus, due to the depletion of India’s renewable energy sources, green growth has found prominence in theUnion Budget 2023-24, as announced by Finance Minister Nirmala Sitaraman on January 31st, 2023.

Green growth is among the seven priorities or saptarishi that could guide India into Amrit Kaal, among many others.

Sitaraman recalls that various programs for green fuel, energy, farming, mobility, buildings, and equipment are being implemented, along with policies for efficient energy use across various economic renewable energy sectors. Thus, the Green Credit programme marks the onset of India’s sustainable goals and can help in achieving LiFE (lifestyle for the environment)—both domestically and globally.

How to Invest in the Top Green Energy Stocks in India?

Investing in green energy stocks requires a strategic approach to align with environmental goals and financial objectives. Begin by thoroughly researching the renewable energy sector, understanding key players, recent trends, and regulatory developments. Diversification is crucial; consider a mix of solar, wind, hydro, and other sustainable energy sources to spread risk.

Stay informed about a company’s commitment to sustainability by examining factors such as its carbon footprint, renewable energy investments, and overall environmental impact. Financial health is paramount, so analyse a company’s balance sheet, revenue growth, and profitability.

Observe market trends and global events influencing the green energy sector. Explore investment options through reputable brokerage platforms, ensuring they align with your risk tolerance and investment horizon. Regularly review your green energy stock portfolio based on market dynamics and evolving industry trends.

In summary, investing in green energy stocks India involves diligent research, diversification, and a keen focus on both environmental and financial metrics.

smallcase Green Energy Portfolios

The Union Budget 2023-24 revolves around welcoming sustainable development.

• Green Growth was based on the Prime Minister’s vision of LiFE or Life for Environment.
• By 2070, the Government of India plans for net-zero carbon emissions, offering ₹35,000 crore for energy transition objectives.
• The recently launched National Green Hydrogen Mission facilitates the economy’s transition to low carbon intensity with an annual production of 5 MMT by 2030.

If you want to learn and invest in a list of Hydrogen Stocks and the renewable energy sector in India, refer to the blog on the bestGreen Hydrogen stockstoday!

Here are two popular smallcase Green Energy portfolios:

Green Energy smallcase by Niveshaay

Electric Mobility smallcase by Windmill Capital

Disclosures for Green Energy smallcase

Disclosures for Electric Mobility smallcase

Factors to Consider Before Investing in Green Energy Stocks

• Government Policies: Analyse the impact of government policies, incentives, and subsidies on the growth of green energy.
• Innovation: Look for companies that potentially invest in innovation and new technologies, as they have higher chances of growth.
• Competition: Evaluate the competition and market trends in the green energy industry and invest in companies with a competitive advantage.
• ESG Performance: Consider the company’s environmental, social, and governance (ESG) performance, indicating long-term sustainability.
• Risk: Assess the risks associated with investing in green energy stocks NSE, including regulatory and potential technology risks.
• Diversification: Diversify your portfolio by investing in multiple green energy smallcase stocks to mitigate risks and maximize returns.
• Long-Term Perspective: Investing in the best renewable energy stocks in India requires a long-term perspective, as the industry is still evolving, and the returns may take time to materialize.

However, it can be a little overwhelming to analyse and research every step. Thus, at smallcase, we have SEBI-registered research analysts who do tons of research, so you don’t have to. Now, you can easily invest in green energy stocks India from the best renewable energy stocks in India listed on a smallcase app or website.

Features of Green Energy Stocks in India

Here are a few key features of Green Energy Stocks in India:

Commitment to Environmental Responsibility

Green energy stocks in India predominantly represent companies deeply committed to environmental responsibility. These firms prioritize renewable energy sources such as solar, wind, and hydropower. Their operations align with eco-friendly practices, reflecting a dedication to sustainable energy solutions.

Resilience to Economic Fluctuations

A notable feature of listed renewable energy companies in India is their resilience to inevitable economic fluctuations. The increasing global emphasis on sustainable practices drives this resilience. As the world pivots towards cleaner energy alternatives, investments in these renewable energy stocks India offer a level of stability compared to some traditional sectors.

Government Support and Initiatives

Green energy stocks in India benefit from robust government support and initiatives. Policies favouring clean energy play a pivotal role in enhancing their growth potential. The regulatory backing creates a favourable environment for investors looking to participate in the burgeoning green energy sector.

Innovation and Technological Advancements

A constant drive for innovation and technological advancements characterises the green energy sector. Companies engaged in research and development of cutting-edge technologies for renewable energy solutions have the potential to experience substantial market gains. This innovation-centric aspect adds dynamism to the investment landscape.

Consideration of Regulatory Landscape

Investors in green energy stocks need to be vigilant about the regulatory landscape. The sector is subject to policy changes and government interventions that can significantly impact the performance of these green renewable energy stocks India. Staying informed about regulatory shifts is crucial for making well-calculated and informed investment decisions in this rapidly evolving and transformative sector.

Risks of Investing in Green Energy Stocks

Here are a few risks of investing in Solar Energy Stocks India or Green Energy Stocks:

Heavy Reliance on Thermal Energy

India’s predominant reliance on thermal energy, specifically coal-based power, stands at 75% in FY 2022-2023. This dependence is rooted in the widespread availability and cost-effectiveness of fossil fuels. The transition to alternative energy sources is a gradual process, challenging the possibility of an immediate shift.

Renewable Energy Production and Distribution Challenges

Beyond the generation of renewable energy, challenges extend to the maintenance, distribution, and storage of the resources of these green shares. Green sources like solar and wind energy are constrained by their intermittent nature, tied to sunlight and wind availability. The irregular supply of clean energy poses hurdles for reliable and consistent power distribution, challenging green energy stocks investments.

Demand-Supply Gap and Peak Energy Requirements

Addressing the demand-supply gap proves challenging, especially considering the higher energy requirements in the evening in India. The fluctuating demand patterns create complexities in ensuring a stable and continuous energy supply, making it a persistent issue in the country’s energy landscape.

Intermittency of Renewable Sources and Seasonal Variations

Solar and wind energy availability is subject to natural conditions, with sunlight limited to daytime and wind patterns influenced by geography and climate. This intermittency and seasonality contribute to an uneven supply of clean energy, posing a challenge to creating a reliable and consistent energy grid.

Cost Inefficiencies in Energy Storage Solutions

While efficient energy storage, mainly through batteries, could be a solution, the current cost-effectiveness of this method remains a barrier. The expenses of advanced storage technologies hinder their widespread adoption, requiring further advancements and cost reductions for sustainable integration into the renewable energy landscape.

Optimizing Battery Storage for Sustainable Transformation

Despite current challenges, there is optimism regarding the potential of batteries as a sustainable storage option for renewable energy. Technological advancements and improved infrastructure could pave the way for cost-efficient and scalable battery storage solutions, facilitating the transition towards a greener and more sustainable energy future. According to AK Saxena of TERI, a substantial 42% of India’s energy could be sourced from renewables by 2030.

How is Investing in Clean Energy Stocks in India Beneficial?

Investing in green energy stocks in India can be a smart and exciting way to help the environment while potentially earning profit. Let’s learn how:

• Growing Industry: The clean energy industry or wind energy stocks are rapidly increasing; thus, investing in it can result in high returns.
• Sustainable: Clean energy sources like solar, wind, and hydro are sustainable and will continue to generate power in upcoming years, increasing the demand for wind energy stocks.
• Reduced Carbon Footprint: Clean energy helps reduce carbon emissions, which is good for the planet.
• Green Job Creation: The clean energy industry creates new job opportunities, contributing to economic growth.
• Diversification: Investing in renewable energy stocks India diversifies your portfolio, reducing risks and increasing returns.
• Positive Impact: By investing in clean energy stocks, you support green energy companies in India NSE that positively impact the environment and society.
• Government Support: Governments worldwide support the clean energy industry with incentives and subsidies, making green energy stocks potentially good investment opportunities.

Who Should Invest in Clean & the Top Renewable Energy Stocks in India?

Investing in clean and renewable energy stocks India is recommended, especially for those passionate about the environment, sustainability, and reducing carbon emissions. Above all, these green energy penny stocks India offer an opportunity to invest in companies prioritising eco-friendly practices and green technology. It can be an excellent deal if you prioritise long-term green energy investments and want to contribute to a more sustainable future. As a result, you can gain favourable returns by investing in clean and best renewable energy stocks India.

As always, investors must do their own research and/or consult their financial advisor before investing.

To Wrap It Up…

To conclude, the green energy and renewable stocks industry in India is a growing sector with immense potential. Thus, if green energy shares catch your eye, there can be plenty of direct approaches through which you can make your portfolio green. However, you don’t have to choose individual companies to invest in green energy and renewable stocks in India. Nonetheless, at smallcase, we have a basket of the best-performing companies created by professionals and backed by tons of research. So, go green with smallcase today!

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