The world is moving to clean energy, and solar energy plays a vital role. India has great potential to generate solar energy. Experts believe the global solar market could grow to $7 trillion in the coming decades. But right now, the US and China are fighting to dominate this market, and the US has imposed heavy tariffs on China. This could be great news for solar energy stocks in India.
According to MNRE (Ministry of New and Renewable Energy, Govt. of India), the country’s solar power potential is estimated at ~748 GW. India’s solar energy sector has grown in recent years. So, if you are an investor, it is a great opportunity to invest in this sector through the stock market. With Jarvis Invest, a SEBI-registered advisor, you get AI-driven recommendations to identify the best stocks and invest with confidence.
Why the Solar Energy Industry Will Grow in the Future in India
The solar energy industry is one of the fastest-growing sectors, and this growth is expected to continue for decades.
Key reasons:
- Total Solar Power Capacity: India has now exceeded 82 GW of total solar power capacity in 2025 (MNRE data).
- The Sunshine Advantage: Sunshine is not a secondary problem in India, as there are about 300 days of sun in a year, capable of tapping the energy of 748 GW solar.
- Government Targets: India has an ambitious target of reaching 500 GW of renewable capacity by 2030, by far the biggest contributor is the solar sector.
- Policy Support: Local examples of policies that promote local solar manufacturing and decrease their reliance on imports include the PLI scheme.
- The advantage to India as a global centre: The continuing US-China trade war over solar equipment offers India another global location opportunity.
How the US-China Trade War Could Boost Indian Solar Energy Stocks
1. Reduced competition from Chinese imports: The US has imposed more tariffs on China, which indirectly benefits Indian exporters. As the USA sought alternatives to Chinese solar exporters, India gained an indirect advantage to boost the export of solar products.
2. Government support and policy incentives: The Indian government is actively promoting the domestic manufacturing of solar equipment through schemes like the Production-Linked Incentive (PLI) scheme.
3. Potential for global market share expansion: The disruption of established supply chains due to the tariff war provides an opportunity for Indian solar companies to expand their exports beyond the US market and gain a larger global presence.
Best Solar Energy Stocks in India:
TATA Power:
Tata Power is an Indian integrated power company and a leader when it comes to implementing renewable energy. The company has a manufacturing facility in Bangalore, which, in association with its solar arm, Tata Power Solar Systems Ltd, manufactures solar cells and modules. It is the leader in rooftop solar projects and has a major presence in the EPC vertical in large-scale solar projects. Its efforts lessen Indian reliance on foreign-made equipment and further the Atmanirbhar Bharat and the renewable energy ambitions of the government.
NTPC Green Energy:
NTPC Green Energy Ltd is the largest renewable energy affiliate of NTPC Ltd, supported by the government. The company is keen on solar and wind energy to increase its energy portfolio so that India can reach its 500GW renewable energy target by 2030. Through extensive solar parks and long-term power purchase agreements, NTPC Green is viewed as a stable actor in India on the road to a clean energy future.
Solar Industries Ltd:
Solar Industries Ltd is most prominent in the intermediate forcing reagents making industry, but it also has an interest in renewable energy and the defense industry. The company has been heavily investing in green energy, such as solar projects, in order to be in tandem with India’s sustainability agenda. It is an interesting participant in the solar market due to a robust balance sheet and growing portfolio.
Waaree Energies Ltd:
Waaree Energies Ltd is amongst the largest manufacturers of solar panels in India, with a well-established presence in the domestic and international markets. It provides a broad spectrum of solar PV modules, and it also offers engineering, procurement, and construction (EPC) services. The role Waaree plays is that it has decreased the reliance on solar panels that India imports, and this aids the government in the Atmanirbhar Bharat mission.
Siemens Energy India Ltd:
Siemens Energy India Ltd is one of the leading energy solutions providers with a good presence in India. Although it mainly deals with power transmission and grids, the company is gradually becoming part of renewable integration efforts, such as in the case of solar and wind systems. Through highly innovative technology and cross-border experience, it assists India in updating its renewable infrastructure and, as a result, is a significant contributor to the green energy value chain.
JSW Energy Ltd:
The JSW Group is in the process of shifting to renewable energy, with JSW Energy Ltd as one of the key companies modernising quickly. The company has an aggressive growth strategy with regard to solar and wind energy in the upcoming years. The company has good financial support and considers sustainable growth, which paves the way to making JSW Energy one of the top-placed renewable companies in the energy sector in India.
Final Thoughts:
The solar energy sector of India is an international development hub. The long-term outlook of Indian solar energy stocks is on the plus side because of the support it enjoys from the government, the falling prices of solar power generation, and the avenues opened up by the tensions between the US and China. Firms like NTPC Green Energy, Waaree Energies, JSW Energy, Solar Industries, and Siemens Energy India are at the forefront of bringing the clean energy future in India.
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Frequently Asked Questions
Q. Is solar energy a good stock investment?
Ans. Yes, solar energy can be a good stock investment because the world is shifting towards clean energy, and India has a huge potential with around 300 sunny days a year. The government is supporting the industry with policies and incentives, and global supply chain changes are creating more opportunities for Indian companies.
Q. Are solar energy stocks affected by changes in coal, oil, and gas prices?
Ans. Yes, changes in traditional energy prices like oil, coal, or gas can impact solar energy stocks. For example, if fossil fuel prices rise, solar becomes more attractive, and demand for solar stocks may increase.
Q.Which factors should investors consider before buying solar stocks in India?
Ans. Investors should check government support, company fundamentals, market demand, global trade impact, and stock valuation before investing in solar stocks in India.
