Solar sector at a glance
In the last 12 years, India’s solar industry has grown significantly. As of March 2026, the installed solar capacity reached 150.26 GW, from 2.82 GW in March 2014. In FY26 alone, 44.61 GW of solar capacity was added. Solar power is expected to play a major role in India’s goal to reach 500 GW of non-fossil fuel energy capacity by 2030.
The factors that helped drive this growth in solar capacity include production-linked incentive (PLI) schemes. The government allocated ₹24,000 crore under the solar PV manufacturing PLI scheme to support domestic production of high-efficiency solar modules. Other schemes like PM Surya Ghar and PM KUSUM also assisted growth.
However, the solar sector has challenges too. Solar plants need land, grid connections and approvals. Also, large-scale projects can face delays due to multiple external factors.
Overview of the top 5 solar stocks
The companies mentioned below have different levels of exposure to the solar sector. Here’s a quick look at their fundamentals:
Reliance Industries
Reliance Industries has businesses across oil and gas, retail, digital services and other sectors. It is also investing in new energy, including solar manufacturing. The company is developing its Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, Gujarat. Its plans cover several parts of the solar supply chain, including photovoltaic (PV) panels, energy storage and power electronics. Reliance has also outlined an aim to enable at least 100 GW of solar energy by 2030 through its new energy business.
NTPC
NTPC is one of India’s major power producers. It has traditionally relied on thermal power but is expanding its renewable energy business through solar and other clean energy projects. One example is its large solar project at Khavda in Gujarat. In March 2026, NTPC announced the commercial operation of the final 78.02 MW portion of its 1,255 MW Khavda-I Solar PV project. It also announced the operation of 90 MW from its 1,200 MW Khavda-II project. These large solar projects can help NTPC increase its renewable power generation.
Adani Green Energy
Adani Green Energy focuses on renewable power generation. Its portfolio includes solar, wind and hybrid projects, where more than one renewable source can be used to supply electricity. The company added 5,051 MW of renewable energy capacity in FY26, taking its operational portfolio to 19.3 GW. This includes 13.5 GW of solar capacity, along with wind and hybrid capacity. The scale of its operations gives direct exposure to India’s renewable power expansion.
Tata Power Company
Tata Power operates across several parts of the electricity business, including power generation, transmission, distribution, solar manufacturing and rooftop solar installations. Its solar business covers both power generation and equipment manufacturing. By March 2026, it has built up 4.9 GW of capacity for making solar cells and modules. During FY26, it produced 3,825 MW of solar modules and 3,759 MW of solar cells. Tata Power’s rooftop solar business also gives it exposure to households and businesses installing their own solar systems.
JSW Energy
JSW Energy generates electricity through thermal, hydro and renewable power plants. The company is expanding into power storage solutions as well. As of September 2026, JSW Energy had 15,025 MW of operational power generation capacity, including 2,426 MW of solar capacity. By 2030, it aims to reach 30 GW in total power generation and 40 GWh in energy storage. JSW Energy’s business
goes beyond solar power. Its overall performance depends on other energy sources as well.
What are the benefits of investing in solar stocks?
Solar stocks can offer exposure to India’s shift towards renewable energy. Here are some potential benefits.
- Growing demand for solar power: India is adding solar capacity to meet its energy needs and reduce dependence on fossil fuels. Companies that execute projects well may benefit from this growth.
- Government support: Schemes for rooftop solar, agricultural solarisation and domestic manufacturing can support demand across different parts of the industry.
- Different business opportunities: You can choose among power producers, equipment manufacturers and companies that install solar systems. Each business has a different way of earning money from the sector.
- Expansion plans: Many companies are expanding and investing in new projects and manufacturing facilities. These investments could help them grow.
These benefits don’t guarantee gains. Solar companies can face competition, cost pressures, delays and other challenges like changes in government policies.
The bottom line
Solar stocks let you invest in India’s growing renewable energy sector. But not every company will benefit in the same way. Some generate solar power, while others manufacture panels or install rooftop systems. Before investing, check the company’s operating capacity, project pipeline and financial results.
Also remember that a growing industry doesn’t make every stock a good investment. If you prefer a diversified approach, you can also explore sectoral or thematic stocks on the Millions app. To invest a small amount in the solar sector every month, you can set up an SIP in a scheme with suitable exposure. Always compare the scheme’s holdings, expenses and risk level before investing.
