7 Best Solar Energy Penny Stocks List 2024

With the global energy landscape shifting towards sustainable and renewable sources of energy, solar energy in India is surely gaining momentum. The National Solar Mission, along with other government initiatives, aims to establish 500GW of renewable energy capacity by the year 2030, which makes India a key player in the global solar energy revolution. Several investors have chosen to take advantage of the upcoming green energy wave in India by investing in penny stocks of solar companies, which happen to be the cheapest share available in the renewable energy sector.

This blog features some of the leading solar penny stocks in India, focusing on companies innovating and benefitting from the country’s shift to clean energy, how they have evolved over the years and their past performance. 

What is Solar Energy Penny Stock?

A solar penny stock is a share of a relatively small, publicly traded company within the solar energy industry. These stocks generally have a low price and are linked to companies that are either in their early stages of development, undervalued, or are developing innovative projects but have an unproven business model. These stocks are usually issued by smaller companies with lower market capitalizations. Their low prices and small market capitalization make them vulnerable to volatile price fluctuations and speculative activities. Moreover, low trading volume can hinder the ability to buy or sell these stocks.

Solar Power Penny Stocks Price List

Best Solar Energy Penny Stocks – an Overview

Overview of the best solar penny stocks are:

1. NHPC

NHPC (National Hydroelectric Power Corporation) is a major Indian public sector company focused on hydroelectric power generation. The company was incorporated in 1975 with a goal to plan and implement projects for efficient hydroelectric power generation in India. In April 2008, the Ministry of Power granted NHPC Mini-Ratna (Category 1) status. In 2009, the company launched its IPO, which was a significant milestone in its journey.

Furthermore, the company is actively expanding its portfolio in renewable energy, specifically solar projects. NHPC currently has many solar power projects under development, which will have an installed capacity of 2400 MW. 

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2. Suzlon Energy

Suzlon Energy is a key player in the Indian renewable energy industry, with a strong emphasis on innovative wind energy solutions. Established in 1995 by Tulsi Tanti, the company has evolved into one of the biggest manufacturers of wind turbines globally. The company operates in over 18 countries across six continents. The company entered the solar energy sector in 2016 and has a total installed capacity of 340 MW. The company also acquired a majority stake in Renom Energy Services Private Ltd., which has solar assets with a capacity of 148 MW. 

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3. SJVN

SJVN Limited, originally known as Satluj Jal Vidyut Nigam Limited, is a strategic joint venture between the Government of India and the Government of Himachal Pradesh in 1988. It is one of India’s top public sector companies in the power sector, specializing in hydropower while also expanding into renewable energy sources like solar, wind and thermal power. SJVN is a Mini-Ratna Category-1 Public Sector Undertaking, and the Government of India holds a majority stake of approximately 60%. The company has three solar projects with 81.3 MW of installed capacity.

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4. Orient Green Power Company

OGPL is a top renewable energy company in India that focuses on generating power from wind and biomass. The company was established to meet India’s energy needs sustainably and is now a major player in renewable energy, emphasizing eco-friendly power generation. The company was founded in 2006 as part of the Sriram Group, a well-known Indian conglomerate. Orient specializes in wind energy and biomass-based power generation and operates on IPPs (Independent Power Projects) to supply electricity to industrial, commercial and grid users. The company targets to achieve 1 GW of total renewable energy capacity by expanding into the solar sector and is planning to develop solar energy facilities with a capacity of 39.6 MW.

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5. Urja Global 

Urja Global Limited, founded in 1992, is a key player in the renewable energy sector in India. It specializes in designing, consulting, supplying, installing and maintaining off-grid and grid-connected solar power systems. Urja Global, a channel partner approved by the Ministry of New and Renewable Energy (MNRE) in India, provides sustainable energy solutions for rural and remote areas. The company is based in New Delhi and promotes green energy with its latest battery technologies.

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6. Surana Solar

Surana Solar Limited is a Hyderabad-based Indian company that manufactures and supplies solar energy products, such as solar modules and lighting systems. Founded in 1978 as part of the Surana Group, the company has played a key role in promoting clean energy in India. The company also specializes in Engineering, Procurement and Construction (EPC) projects within the renewable energy sector, with a strong emphasis on solar photovoltaic systems. The company has four solar projects in Gujarat and Telangana, with a total installed capacity of 20 MW.

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7. Ind Renewable Energy

Ind Renewable Energy Limited was established in 2011 and is based in Mumbai, India. The company focuses on generating and selling solar power in the renewable energy sector. Originally named Vakharia Power Infrastructure Limited, the company changed its name to Ind Renewable Energy Limited to better align with its focus on sustainable energy solutions. The company has partnered with Shreni Construction Private Ltd. to develop a Solar PV system.

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Key Performance Indicators (KPIs)

Benefits of Investing in Solar Penny Stocks

The benefits of investing in solar penny stocks are:

• High Growth Potential: The solar energy industry is expanding rapidly as there is a growing focus on sustainability and renewable energy. Small solar companies can innovate or tap into niche markets, resulting in exponential growth.
• Affordable Investment Opportunity: Penny stocks are generally low-priced and hence present an attractive investment opportunity for investors with limited financial resources.
• Market Undervaluation: Solar penny stocks may represent undervalued companies with strong business models, presenting opportunities for substantial price appreciation as they achieve greater market recognition.

Disadvantages of Investing in Solar Penny Stocks 

The disadvantages of investing in solar penny stocks are:

• High Risk & Volatility: Similar to other penny stocks, these stocks are highly volatile, often experiencing sharp price changes due to market speculation or changes in regulations. The small market capitalization of these companies makes their shares susceptible to manipulation.
• Financial Instability: Small solar companies may face significant hurdles in attaining profitability, often becoming overly dependent on external funding, which may not provide a reliable foundation for long-term success. Without established revenue streams, the risk of business failure rises.
• Industry Challenges: The solar industry faces significant challenges due to its competitive nature and the high capital demands. Investments in technology and infrastructure are essential for success in this field. Changes in government policies, subsidies, or tariffs can greatly affect the profitability of solar companies, particularly smaller ones.

How to Invest in Solar Penny Stocks?

An individual can invest in solar penny stocks by following the below-mentioned steps:

1. Research the Solar Energy Sector: Get a comprehensive understanding of the solar energy industry by studying market trends, identifying key players, and the challenges it goes through. Explore the emerging niche markets such as solar energy storage, solar panel manufacturing, etc.
2. Identify stocks: Use online screeners and brokerage tools to uncover undervalued penny stocks within the industry. Analyze the company’s business model, revenues and growth potential. Look for companies with strong leadership or partnerships with established companies.
3. Keep a close watch on government incentives, renewable energy subsidies, and environmental policies, as these factors could influence the solar industry. Conduct a competitor analysis to evaluate the target company’s competitive advantage against its rivals.
4. Choose the right broker with low fees and research tools for analyzing small-cap stocks. Invest only what you can afford to lose. 
5. Analyse price trends with charts to identify patterns, trading volume, and historical volatility. Monitor for catalysts such as news, policy changes, or technological advancements that could affect market prices.

Conclusion

India’s solar energy sector is poised for growth due to supportive government policies, technological advancements, and a global move towards renewable energy. Penny stocks are appealing because they are cheap, but it is important to be cautious because they come with risks like market volatility and the unreliable financial performance of small companies. Investors should focus on conducting comprehensive research, embracing diversification, and maintaining a long-term perspective when navigating this sector. India’s push for renewable energy makes solar penny stocks important for a sustainable future. 

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