Top solar stocks to keep an eye on as India's solar energy revolution starts a new era of energy

India is making more progress than ever in the area of solar energy. The days when huge solar farms were all over the news are over. In 2024, roofs, homes, and small businesses are getting more attention. These places led to a quiet but revolutionary change in how the country makes clean energy. A 2024 study by Business Line says that India added a record 24.5 GW of solar power this year, with a huge 25% coming from installations that aren't connected to the grid, like rooftop systems and projects that aren't connected to the grid. This is a big change for a sector that used to depend on large-scale energy projects. Let's break down this solar boom and look at the companies leading the way.

Solar on Rooftops Takes the Lead

Rooftop solar is without a doubt the most important part of India's solar story in 2024. This year, 4.6 GW were added by residential installations alone, which is a huge 53% rise from 2023. Even better than that? In the September 2024 quarter, 85% of all new installations were in the residential group. What's making this rise happen?

The answer is policy tailwinds and common sense in the business world. The PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY), which began in early 2024, has changed everything. The program aims to put 30 GW of solar panels on the roofs of homes by giving people subsidies that cover up to 60% of the costs of installation. This has slashed payback times to a mere 3-4 years, rendering solar an irresistible option for middle-class families weary of rising energy bills. The program made it possible for 720,000 installations in just 10 months, which is a tenfold increase in the number of installs each month.

The home market is no longer a sideshow, says an energy expert in Mumbai. "Rooftops have been turned into mini power plants thanks to easy access to cheap financing and more people knowing about it."

Even though household consumers get most of the attention, commercial and industrial (C&I) customers haven't been forgotten. Solar is being used more and more in factories, malls, and offices to save money and help the environment. Off-grid solar systems, like rural microgrids and solar-powered irrigation pumps, grew by 197% in 2024. Because they get a lot of sunlight and have advanced laws, states like Rajasthan, Gujarat, and Maharashtra are leading the way in this.

Why is this solar shift important?

India's solar change isn't just about megawatts; it is also about making energy more accessible to everyone. With rooftop systems, homes can become "prosumers" (producers and users), which means they use less fossil fuels and electricity from overloaded grids. Solar cuts costs for companies and improves their ESG credentials at the same time.

But there are still problems. Grid infrastructure needs upgrades to handle decentralized power, and financing for small-scale projects must expand. Still, you can't deny the progress. Solar power for homes and businesses is no longer a niche, says Business Line. It's the future.

The best solar sector stocks in India riding the wave

Investors want to buy solar stocks because the industry is doing so well. Here are some popular solar sector share lists in India:

Tata Power Solar: This company is India's biggest total solar player. It is a branch of Tata Power. From manufacturing panels to building rooftop projects, it’s a one-stop shop. Orders for its residential section went up by 80% in Q3 2024 thanks to the PM-SGMBY scheme.

Adani Green Energy: Adani is best known for its utility-scale projects, but it has quickly grown its C&I solar business. Its recent purchase of a rooftop solar EPC (engineering, procurement, and building) company shows that it wants to focus on the energy that is spread out.

Waaree Energies: India’s largest solar panel manufacturer, Waaree supplies 30% of the modules used in rooftop installations. Its stock has grown by 65% this year as the need for cheap panels goes through the roof.

Suzlon Energy: Suzlon is mostly known as a wind energy giant, but its solar arm is growing. A lot of businesses want its combined wind-solar projects.

What’s the future of the solar sector in India?

India's solar sector is currently facing a pivotal moment. With rooftop adoption accelerating and ambitious policies in place, the country could surpass its 2030 renewable targets early. However, sustaining growth will require smoother approvals, better financing for SMEs, and continued innovation in storage technology.

For investors, the message is clear: Solar isn’t just about big farms anymore. The real action is happening on rooftops, factories, and farms—and the companies enabling this shift are the ones to watch. As Business Line’s data shows, the sun is rising on a new era of energy in India, and it’s brighter than ever.

Note: This article is just for informational purposes and should not be considered investment advice. Please connect with a financial expert for any investment-related query.

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