Renewable energy comes from natural sources like sunlight, wind, and water that can be replenished over time. These sources can generate electricity without relying on fossil fuels such as coal and natural gas. Renewable energy stocks are shares of companies that operate in this sector.
Not all renewable energy companies do the same work. Some generate electricity, while others build solar and wind projects or make the equipment they need. Their performance depends on factors such as power demand, borrowing costs, and government policies.
India’s renewable energy sector: A quick glance
India is adding more renewable energy capacity to meet its growing power needs. It aims to reach 500 GW of non-fossil fuel capacity by 2030. Already, by September 2026, its renewable energy capacity had reached 299 GW.
Government schemes like PM Surya Ghar also encourage households to set up rooftop solar systems. This opens up opportunities for companies that generate power and make equipment for the sector. Battery storage is another area worth watching as solar and wind power can sometimes be inconsistent due to weather. Batteries can store power and supply it when generation drops, or demand goes up.
However, the renewable energy stocks have their challenges. Building renewable energy projects requires a lot of funding. Delays in construction, land approvals, and grid connection can further affect earnings.
Overview of top 5 renewable energy stocks
Here’s a quick look at 5 companies with direct exposure to India’s renewable energy stocks:
*A 3-year return for ACME Solar Holdings is not available, as the stock has been listed for less than 3 years as of October 2026.
Adani Green
Adani Green Energy develops and operates solar, wind, and hybrid power projects. It added more than 5 GW of renewable capacity in FY26, taking its operational capacity to 19.3 GW. Its target is to reach 50 GW of capacity by 2030.
Adani is also putting money into battery storage. This can help the company supply electricity when solar and wind power generation is low. As a potential investor, you should also look at how the company pays for its expansion and handles its debt.
NHPC
NHPC is a government-owned power company known mainly for its hydropower projects. The company is expanding into solar power and other renewable energy sources. Its projects include solar installations and large hydropower plants.
NHPC is also looking into pumped storage projects. These can help the company meet higher electricity demand by storing energy and releasing it when needed. However, its performance may be affected by water supply, project costs, and any delays in building new plants.
ACME Solar Holdings
ACME Solar Holdings develops and operates renewable energy projects. The projects cover solar, wind, hybrid power, along with energy storage. The company is working on projects across 11 states, including Rajasthan, AP, Gujarat, Telangana, UP, Punjab, Karnataka, and MP. As India aims to increase renewable energy capacity to 500 GW by 2030, ACME could benefit.
SJVN
SJVN Limited is a government-owned company that began its operations in hydropower. Later, it expanded into solar, wind, and other renewable energy projects. Its renewable energy arm, SJVN Green Energy, develops solar and other clean energy projects.
Recently, in July 2026, SJVN’s 1,000 MW Bikaner solar project in Rajasthan was inaugurated. The company has many projects in the pipeline that can support future growth.
Waaree Renewable Technologies
Waaree Renewable Technologies Limited helps in building solar power plants. Its work includes planning, installing, and managing solar projects for its customers. It basically helps turn a solar project plan into a working power plant.
The company primarily earns money by building projects through engineering, procurement, and construction (EPC) services. It also helps manage plant installations. Its growth depends on getting new orders and completing projects on time.
5 Things to check before investing in renewable energy stocks
Don’t jump into buying renewable energy stocks just because someone recommended it. Instead, check these factors before you make the decision:
- Business model: Find out what the company does. A power producer, equipment manufacturer, and project contractor all have different business models and also face different risks.
- Government policies: Changes in subsidies, tariffs, or renewable energy rules can affect how a company operates and earns revenue.
- Order book: For companies that build projects, check their pending orders. A large order book is beneficial only if the company completes the work on time.
- Debt and cash flow: Renewable energy projects are capital intensive. High debt and rising interest costs can put pressure on profits. Also, the company should generate enough cash to cover expansion and interest expense.
- Valuation: A company can have good growth prospects but still can be expensive. Compare its P/E ratio with its earnings and expected growth.
The bottom line
Renewable energy stocks give you an opportunity to invest in companies working towards cleaner power in India. But putting your money into one company comes with risks. Its share price can fall due to high debt, project delays, or poor earnings, even if the renewable energy sector continues to grow.
Spreading your investment across multiple companies can help reduce the risk. For that, you can explore sectoral or thematic mutual funds on the Millions app. You can set up an SIP in a scheme that holds companies linked to renewable energy.
Check its portfolio, costs, and risk level before investing. Renewable energy is a long-term theme, so focus on business performance and valuation rather than chasing short-term price movements.
