Solar energy converts sunlight into electricity using photovoltaics or concentrated solar power. It is an abundant and eco-friendly energy source, playing a significant role in sustainable development.
Technology is the driving force behind the growth of solar energy, as it enables the development of more efficient, reliable, and affordable solar systems. It also helps to overcome the challenges and limitations of solar energy, such as intermittency, storage, and transmission. Technology also creates new opportunities and markets for solar energy, such as distributed generation, smart grids, and electric vehicles.
In this Research and Ranking report, we will explore how technology influences the growth of stocks of companies that work on solar energy. We will use various criteria, such as market capitalization, earnings, revenue, growth rate, and return on capital employed, to evaluate and rank India’s top solar energy stocks.
This article will provide an overview of the solar energy industry, its trends, challenges, and prospects.
Factors that Drive the Growth of Solar Energy Stocks
The demand for solar energy is growing fast due to countries’ and businesses’ increasing adoption of renewable energy goals and policies. According to the IEA, solar power will be the largest source of global electricity by 2030, accounting for 24% of the total. Moreover, the IEA predicts that solar energy will contribute more than 70% of the electricity in India by 2050.2.
Government support and incentives are also crucial for the growth of solar energy stocks, as they provide regulatory certainty, financial assistance, and policy frameworks for the solar industry. For instance, the Indian plans for 450 GW of renewable energy capacity by 2030, with 300 GW generated from solar energy. The government offers various schemes and subsidies, such as the Jawaharlal Nehru National Solar Mission, the Solar Energy Corporation of India, and the KUSUM scheme to promote solar energy development.
Innovation and cost reduction are other vital factors that drive the growth of solar energy stocks, as they improve the performance and profitability of the solar industry. Technological advancements in solar cells, modules, inverters, batteries, and other components have increased the efficiency and reliability of solar power systems while reducing their costs and maintenance and increasing the profits made by the company per solar cell. It can be seen that since 2010, the average cost of solar PV modules has declined by more than 80%, making solar energy more affordable and accessible5.
Top Solar Energy Stocks in India
Based on the research and ranking by various sources, here are some of the best solar energy stocks in India that you can consider investing in:
- Tata Power: Tata Power is one of India’s oldest and largest integrated solar energy power-generating and distributing companies, with a solar capacity of 3,191 MW and another 1,460 MW under construction. The company also has a subsidiary, Tata Power Solar Systems Limited, India’s largest solar panel manufacturer and related products. Tata Power aims to increase the share of renewable energy in its energy mix to 70% by 2030 and 100% by 2045.
- Adani Green: Adani Green is one of India’s largest renewable energy power producers, with operational assets of 8,404 MW, 1,899 MW at the near completion stage, and 10,131 MW of assets under construction. The company has a diversified portfolio of solar, wind, and hybrid projects and has secured contracts to supply 13.5 GW of renewable power to various state and central utilities. Adani Green plans to achieve 25 GW of renewable energy capacity by 2025.
- Borosil Renewables: Borosil Renewables is India’s only solar glass manufacturer and one of the leading suppliers of solar glass to domestic and international markets. The company produces high-quality and low-iron solar glass, which is used to make solar modules and enhance their efficiency and durability. The company has a production capacity of 450 tonnes per day and plans to expand to 950 by 2022.
- Suzlon Energy: Suzlon Energy is one of India’s leading wind turbine manufacturers and service providers, with a presence in 18 countries. The company also has a solar energy division, which offers end-to-end solutions for solar power projects, including design, engineering, procurement, construction, operation, and maintenance. The company has a solar portfolio of 340 MW and has recently won a contract to develop a 252 MW wind-solar hybrid project in Gujarat.
- KPI Green Energy: KPI Green Energy is a solar energy company specializing in rooftop solar solutions for residential, commercial, and industrial customers. The company offers customized and turnkey solutions, including site assessment, design, installation, commissioning, monitoring, and maintenance. The company has installed over 100 MW of rooftop solar systems across India and has a strong pipeline of projects.
Solar energy is a promising and profitable sector, as it offers multiple benefits for the environment, the economy, and society. Technology is a key enabler and catalyst for the growth of solar energy, as it improves solar systems’ efficiency, reliability, and affordability. Solar energy stocks are attractive investment options, as they offer exposure to the fast-growing and future-oriented solar industry.
However, investors should also be aware of the risks and challenges in the solar sector, such as policy uncertainty, competition, and volatility. Therefore, investors should do their due diligence and research before investing in solar energy stocks.