For Example, Ramesh was a private bank employee who wanted to secure his financial future. In the year 2020, he read an article about the popularity of renewable energy stocks, which were predicted to give more profit in the future. So he purchased 100 shares of Adani Green Energy Ltd, at ₹ 284.25 each, totalling ₹ 28,425.

In June 2025, as per the predictions, the price of the stocks grew by 255.08% approximately, where the total value of his purchased stocks was priced at ₹ 1,00,910, with the net gain of ₹ 72,485 in five years.

Have a look at these calculations for your easy understanding:

Adani Green Energy Ltd
Value in June 2020	₹ 284.25	Value in June 2025	₹ 1009.10
Total Number of Stocks	100
Total Value in June 2020	₹ 28,425 (₹284.25 * 100)	Total Value in June 2025	₹ 100,910 (₹1,009.10 * 100)

In the Union Budget of 2025, the Indian Government has allocated:

₹ 150.61 million for the solar sector
₹ 6 billion for the National Green Hydrogen Mission (Increase from ₹ 3 billion)
₹ 5.51 million for wind power and other renewable energy.

This blog unravels the top renewable energy stocks in India that can change the realm of stock investments in the upcoming years.

Renewable Energy and Its Significance

The societal consciousness to protect the ecosystem of India is growing every day, and the same is also highly appreciated by the Government of India, by proposing visionary projects on the renewable energy sector. So does Mr. Mukhund, a science teacher from Jaipur. He installs a rooftop solar power plant and becomes one among the 10,00,000 households to benefit from the PM Surya Ghar: Muft Bijli Yojana scheme.

Read More – The Impact of Renewable Energy Investments on India's Future Economy

Have a look at the total annual cost of electricity saved by Mr. Mukhund in 2024:

Subsidy Received	₹ 48,000
Monthly Electricity Savings	₹ 1,300
Annual Savings	₹ 15,500

Mr. Mukhund's decision to opt for a solar rooftop is also a part of the national shift. Because, at present, the country is hoping to secure the future of all the natural resources for future generations. During the fiscal year of 2024-2025, India achieved 25 GW of renewable energy, which is a 35 % rise from the previous year’s 18.57 GW.

Let’s expound on the growth across different key sectors:

Sector Name	Fiscal Year 2023-2024	Fiscal Year 2024-2025
Solar Sector Drives Renewable Surge	15 GW	21 GW
Domestic Solar Manufacturing Scales	38 GW	74 GW
PV Cells Manufacturing Units	9 GW	25 GW

Example: Let’s assume that one GW is USD 300.

If XYZ company derives 6% of India’s solar power output, then this is how the calculations work:

FY 2023-2024

6 % of 15 GW = 0.9 GW
Total revenue per GW = USD 270.

FY 2024-2025

6 % of 21 GW = 1.26 GW
Total Revenue per GW = USD 378

The difference is a 40% increase from the FY 2023-2024, with the increase of revenue to USD 108.

Today, renewable energy stocks have become a significant one in the realm of the share market. The Indian Government aims to achieve the climate goals by implementing the following changes:

Increasing the solar production capacity from 38 GW to 74 GW.
Raised nearly 3x times the production of PV Cells from 9 GW to 25 GW.
Disbursed ₹ 4,770 crores of subsidies to the beneficiaries of PMSGMBY.

Advantages of Renewable Stocks in India

For Example, after succeeding in the solar rooftop plant, Mr. Mukhund opts to invest in renewable stocks, due to their reliability and sustainability. This sector looks more promising for high yields, and also visionary in protecting the ecosystem, with the support of the Indian Government.

Now, what advantages could empower the financial future of Mr. Mukhund?

1. Long-Term Growth

India marches towards the goal of achieving 500 GW of renewable energy by 2030, Mr. Mukhund finds long-term growth through stock investment in companies like Adani Green Energy Limited (AGEL).

In 2020, AGEL had a market cap of ₹ 30,000 Cr.
Now in 2025, the company hits the market cap of ₹ 1,41,565 Cr. - nearly 5x growth.

So Mr Mukhund predicts that if he invests at least ₹ 1,00,000 lakhs, he can get a guaranteed profit of ₹ 5,00,000 lakhs in the future.

2. Government Support

Mr. Mukhund has installed a rooftop solar plant under the government’s scheme PM Surya Ghar: Muft Bijli Yojana, and benefited from it in the following ways:

A subsidy of ₹ 48,000.
Plans to invest ₹ 60,000 in the solar-based stocks.

Do you know why he opted for this logic? Because the Indian Government has allocated a subsidy of ₹ 4,770 crores for the scheme PMSGMBY.

3. Array of Portfolio

Mr. Mukhund also finds that renewable energy is not just a solar power plant, but also encompasses the following energy sources:

Electric Vechiles (EV)
Battery Technologies
EV Components

He realises that along with the growth of solar plants, there is a strong demand for electric vehicles, as the cost of petrol will

increase in the future.

4. Consumer Demand

Mr. Mukhund figures out that there is an increase in the usage of EVs every day, to combat the cost of petrol price, which is now at ₹ 110 per litre. So he does the math and finds:

At least, there are 50 EVs every day.
1.94 million EVs were sold in 2024.

So he purchases 1000 stocks of Ather Energy Ltd, where the price of a stock is ₹ 312, and expects its growth to be at least 15 % in the future.

Top Renewable Energy Stocks in India

With the advancements in renewable energy technology and its growing popularity, some key players have changed this industrial landscape, with promising returns to their investors.

The following table enumerates the top renewable energy stocks in India, which is extracted from the official website of Google Finance:

S. No.	Company Name	Revenue on FY 2023-2024	Stock Price (₹)	Market Cap (₹ Cr)	P/E Ratio
1	Adani Green Energy Ltd.	USD 759.1 Million	₹ 905.05	₹ 159,845	96.83
2.	Sterling and Wilson Renewable Energy	USD 324.6 Million	₹ 260.15	₹ 7,136	87.6
3.	ReNew Power	USD 1.1 Billion	₹ 6.31	₹ 16.6	133
4.	JSW Energy	USD 178.8 Million	₹ 468.50	₹ 86,925	44.6
5.	Tata Power Energy Limited	USD 257.6 Million	₹ 381.25	₹ 126,823	31.3
6.	NTPC Renewable Energy Limited	USD 68.8 Million	₹ 101.20	₹ 92,209	194
7.	SJVN Green Energy Limited	USD 301 Million	₹ 93.37	₹ 38,351	46.9
8.	Suzlon Energy Limited	USD 1.2 Billion	₹ 56.15	₹ 96,409	46.5
9.	Soleo Solar Private Limited	USD 12.2 Million	₹ 882.65	NA	NA
10	KPI Green Energy Limited	USD 40 Million	₹ 379.80	₹ 9,672	30.1

Risks in Renewable Energy Stocks

The story of Vedant is apt to explain the risks involved in renewable energy stocks. Because he of the hype about the renewable energy stocks, and greed to make a massive amount of money, he has invested ₹ 6,00,000. But he later understood and fit himself as an example to the famous proverb, “All that glitters is not gold!”

1. Market Volatility

Vedant has invested ₹ 2,50,000 laks in Adani Green Energy Ltd. But the Hiddenburg Research Report hit Adani Group, and caused it to lose ₹ 7,00,000 crore. This impacted Vedant’s:

His stocks fell to the price of ₹ 1,15,000 lakhs.
A loss of ₹ 1,35,000 lakhs, within a week.

2. Dependence on Government Policies

Vedant has also invested ₹ 2,00,000 lakhs in the stocks related to the Indian Government’s scheme FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles). But the Union Budget 2026 has made the following change:

Allocation of ₹ 4,000 crore for PM E-Drive Scheme.

So, the stocks that were dependent on the FAME scheme dropped by 40%. As a result of this, Vedant’s stock decreased to ₹ 1,07,000 lakhs.

3. Capital Requirements

As Vedant was attracted to the promising returns from renewable energy stocks, he invested ₹ 1,50,000 in Gensol Engineering Ltd. But the company went bankrupt in 2024:

Loan defaulting for ₹ 510 crore.
Lack of capital to expand its business.

Vedant’s investment decreased to ₹ 50,000, which is a loss of 66% overnight. He realised that even poor management of finances can lead to a huge loss, even though if it is a promising sector like renewable energy.

Also Read - India Has Officially Launched a Certification Scheme for Green Hydrogen

Conclusion

The landscape of the stock market for renewable energy in India attracts a large number of investors. Intending to eradicate carbon footprint and boost the environment-friendly development, the Government of India promised to combat the climate problems of the country. Hence, one can invest in the renewable energy sector, which is promising, and can yield more returns in the upcoming days.

FAQs

1. Is it safe to invest in renewable energy stocks?

It is completely safe to invest in renewable energy stocks. However, as an investor, you must do a SWOT analysis on a company’s business operations.

2. How to invest in renewable energy stocks?

As an investor, you need a demat and trading account to buy and sell the stocks of the company of your choice.

3. What will be the future of renewable energy stocks in India?

The Government of India has allocated a separate fund for the renewable energy sector. Therefore, there will emerge many companies that focus on the expansion of this sector.

4. What is PM Surya Ghar: Muft Bijli Yojana (PMSGMBY)?

It is one of the Government of India’s initiatives to support the renewable energy sector. Under this historic plan, ₹ 10,00,000 households in India have installed solar plants for domestic purposes.

5. Which renewable energy plant in India is the pioneer in this sector?

The establishment of a 50 MW solar-thermal power plant by Godawari Green Energy Limited in Rajasthan is considered to be a pioneer in this sector.

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