8 Best Renewable / Clean Energy Stocks in India [2023]

When it comes to bet on the Future, Renewable Energy is among the initial sectors that comes to our mind. To combat climate change, many countries are encouraging usage of renewable energy sources to reduce carbon emissions by a great margin.

So, to bet on the Renewable Energy, which stocks are ideal to Pick?

Here, we are going to find out this thing and would see which Clean Energy shares can be suitable for investment.

In this Article

• Renewable Energy Industry Outlook
• List of Best Renewable Energy Stocks in India
• Second List of Renewable Energy Stocks
• Business Details and Green Energy plans of Stocks

Renewable Energy Industry Outlook in India

Prime Minister has retraited many times that India will increase its capacity of non-fossil energy capacity to 500 GW by 2030. Will meet 50 per cent of its energy requirements through Renewable Energy by 2030.

As of now, Clean Energy capacity of India stands around 175 GW. In last 9 years, the capacity has increased by nearly 4 times.

We will have to see whether India is able to reach these Targets for Renewal Energy by 2030 or not. But the past numbers clearly indicates that Indian Government has Ambitious plans for Clean or Renewable Energy.

This high pace of capacity addition in Clean Energy in India represents a good opportunity for Investors. But with whome we should play this opportunity?

List of Best Renewable / Clean Energy Stocks in India

In above list, two Green Energy stocks have been omitted. They are Adani Green Energy and Inox Wind. Adani Green has a good business and growing with strong momentum. But share price is too high for any investment.

Inox Wind is in heavy losses. It may regularly require financial support. Therefore, these two stocks haven’t been added in the list but have been mentioned here.

Business Details of Green Energy Stocks

Below, businesses and Green Energy Plans have been added of only those stocks which were mentioned in the first list.

Borosil Renewables

Borosil Renewables is the only company in India manufacturing Glasses for Solar panels. It has no major competition in the country except imports from China and other countries. But as of now, Anti Dumping duty (imposed by Government few years back) is restricting the companies from other countries to dump their solar glasses in India.

Company started with one furnace (SG1) with solar glass capacity of 130 Tons per day (TPD) which then enhanced to 180TPD. This furnace (after completing 9.5 years) was recently refurbished and now has increased capacity of 210TPD. New furnace (SG2) added with capacity of 240TPD making overall plant capacity to 450TPD.

Seeing the better trends, company has decided to add another 500 tonnes per day capacity to its production capacity which would take up the total capacity from 450TPD to 950TPD. Production facility is likely to be functional from June 2022.

Considering push on self-reliance under “Atmanirbhar Bharat”, more solar module manufacturing will be done in India providing good visibility to demand growth for solar glass.

Synergy Green Industries

Synergy Green caters to needs of Wind Energy Industry. Company manufactures different products that are used in setting up Wind Turbines. Nearly 75% of total revenues is derived from this segment.

Apart from Wind Turbine Industry, company is also producing castings to Mining, Pumps & Plastic Injection parts. Company generates remaining 25% revenue from these segments.

GWEC Market Intelligence expects that over 469 GW of new onshore and offshore wind capacity will be added in the next five years – that is nearly 94 GW of new installations annually until 2025.

Along with catering to domestic market, turbines are exported to other countries too. Company also directly exports the castings for US market. Last year, revenues consist of 45.8% exports to the US market.

Considering the demand growth visibility in coming years, company has plans to expand its manufacturing capacity by atleast 1/3.

Torrent Power

Torrent Power is a part of Torrent Group which is managed and owned by Sudhir and Samir Mehta (Brothers). It is one of the largest private sector players in India having interests in power generation, transmission, distribution and manufacturing and supply of power cables.

Torrent Power has significant plans to expand its renewable energy portfolio and power distribution business in near future. Company’s total generation capacity, including under development portfolio, are expected to reach around 4.9 GigaWatt (GW) with renewable portfolio of more than around 1.8 GW soon. Recently, company has acquired few green / renewable energy assets.

In a recent interview, Torrent Power management had said, “Our plan is to double in next three years to around 5 gigawatts of renewable generation capacity”.

Torrent Power has a portfolio of coal based, gas based and renewable power plants with an aggregate generation capacity of 3879 MW. The Company distributes power to over 3.65 million customers annually in its distribution areas of Ahmedabad, Gandhinagar, Surat and Dahej SEZ and Dholera SIR (Gujarat), in Bhiwandi, Shil, Mumbra and Kalwa (Maharashtra) and in Agra (Uttar Pradesh).

JSW Energy

JSW Energy is a part of JSW Group. It is one of the leading Private power generation companies in India. Company currently generate 4,559 MW, out of which 3158 MW comes from thermal power plants, 1391 MW from hydropower and 10 MW from solar power.

In September 2021, Maharashtra government and JSW Energy had signed two MoUs to set up two green projects worth Rs 35,500 crore to generate 6,500 MW clean energy in northern and western Maharashtra. This would comprise a 1,500 MW hydro-based power project in Nashik and a 5,000 MW wind power project spread across 1,870 hectares in Kolhapur, Solapur, Satara and Osmanabad, to be set up within 18 months.

JSW Energy has ambitious target of 50 percent reduction in carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy. The company has set a target to reach 20 GW of power generation capacity by 2030, with share of renewable energy at 85 percent.

For future, JSW Energy is targeting to add new power capacity from only wind, solar and hydro segments. This indicates the vision and plans of JSW Energy company regarding Green Energy / Clean Energy.

Tata Power

Tata Power, together with its subsidiaries and joint entities, is present across the entire power value chain of conventional & renewable energy and next-generation customer solutions. In total, Tata Power has nearly 13,000 MW (13 GW) power generation capacity.

Tata Power is looking to scale up its green energy portfolio from 4 gigawatts at present to 25 GW by 2030. Company aims to provide “excellent 24-7 renewable solutions” through a combination of solar, wind and other power sources, offering a range of services to customers.

Tata Power hopes to add 2 GW of Clean Energy every year to meet its 2030 target. Clean energy currently makes up 30% of Tata Power’s portfolio, which it hopes to double by 2025.

Along with Renewable Energy, Tata Power has ambitious plans in Electric Vehicle space too. As of now, company is the largest provider of vehicle charging infrastructure in the country, having installed nearly 1,000 charging points in about 170 cities.

Tata Power plans to install EV chargers over a 3,600 km stretch from India’s northernmost region of Kashmir to Kanyakumari, a town at the southern tip of the country. Company is targeting to add 10,000 charges in the next three years, and then take it to 100,000 in the next 10 years.

NTPC

National Thermal Power Corporation or NTPC is India’s largest power utility with an installed capacity of 67,657 MW (including JVs) and plans to become a 130 GW company by 2032. It is primarily involved in generation and sale of bulk power to State power utilities. President of India holds nearly 50% shares in the company indicating that it is a PSU firm.

For the Green or Renewable Energy, NTPC has BIG plans in future. By 2032, the company plans to have 60GW capacity through Green Energy sources constituting nearly 45% of its overall power generation capacity. As of now, Renewable Energy Capacity of company is nearly 2GW. For the future, company has plans to double its power generation capacity primarily through Renewable Energy sources.

NTPC Renewable Energy (subsidiary of NTPC) is the spot where Renewable Energy projects for 60GW are going to be executed. If in future, NTPC chooses to list this company separately, it will definitely be among the best bets on Renewable Energy. However for now, NTPC is the bet for Clean Energy.

Websol Energy system

Websol Energy System manufactures solar cells and modules. The company is one of the largest merchant manufacturers of solar cells and modules in India and the only pure-play listed solar cell manufacturer, servicing the growing needs of the country’s renewable energy revolution.

Low promoter holding and no major growth in revenues over past few years are some of the things that makes the stock of Websol little risky. But, India is on the cusp of a solar energy revolution as the Union government plans to achieve 500 GW (gigawatts) of installed renewable capacity by 2030, with solar contributing about 280 GW (over 60%). As of now, Solar energy capacity is around 50GW.

That represents a good opportunity for Websol Energy to expand manufacturing capacities so that company could take the advantage of Ambitious Solar Energy and Renewable Energy plans of Government.

Swelect Energy Systems

Swelect Energy Systems Limited (formerly known as Numeric Power Systems Limited) is one of the leading Solar Power Systems Company. The firm operates in three primary segments

1) the solar panel/EPC segment

2) the alloys and casting segment that cater to the oil and gas and the engineering industries

3) the solar power/independent power producer (IPP) segment that supplies power to PSU entities and private players.

Swelect Energy Systems Limited has strong presence in solar PV module manufacturing, solar power generating systems, solar IPP and solar power EPC segment. The company have long-term Power Power Agreements for selling solar power to Government utilities and Private Firms.

As of now, Swelect is a mid-sized solar panel manufacturer with a manufacturing capacity of 110 MW/p.a. The company has installed power generation capacity of ~77 MW through solar power assets that supply power to various counterparties such as SECI, TANGEDCO, CESC, AAI.

That is the end of this article.

It is possible that some good clean energy stocks could have been left uncovered in this article. If you know any such stocks, must share the name in comment box. If I found them good, i will definitely add them here : )