Why Switch to Green Energy – Top Stocks to Invest in Green Energy and EV

Overview

It is evident that India, a nation of over 1.3 billion people, is experiencing a surge in energy demand. To meet this growing need while ensuring a sustainable future, the nation is actively embracing and adapting renewable and green energy solutions in different sectors. 

As Union Minister Nitin Gadkari aptly stated, “Green initiatives in the construction sector will be taken to achieve the vision of the Prime Minister to make the country carbon neutral by 2070.” To support these initiatives and accelerate the campaign among the public, they have also exclusively allotted a specific number of annual budgets to the green and sustainable energy sectors.

We would discuss the world of renewable and green energy in India in this blog to decode the importance of switching to green energy, along with its advantages, investment opportunities, and the exciting future it holds.

Let’s begin with…

What is Renewable Energy?

Renewable energy refers to energy sources that are naturally replenished on a human timescale. These sources, unlike fossil fuels like coal and oil, are not finite and can be harnessed continuously. Examples include solar, wind, hydro, geothermal, and biomass energy. In simpler terms, it’s energy that comes from sources that are constantly being refilled by nature such as sunshine, wind or river flow, unlike coal or crude oils which get used up.

What is Green Energy?

Green energy is a broader term encompassing all forms of energy production that have minimal environmental impact. While all renewable energy sources are considered green, green energy can also include certain low-carbon technologies like nuclear power.

Why Switch to Green Energy?

Imagine a future where your morning commute isn’t shrouded in smog, and electricity bills don’t fluctuate with global oil prices. That’s the promise of green energy for India. Right now, traditional power sources like coal plants are choking our cities and contributing to climate change – a big deal considering India is the world’s second-largest emitter of greenhouse gases! But there’s a way out. Can shifting from conventional energy to renewable energy help?

Solar, wind, and other renewable sources are clean-burning, which means they don’t pollute the air we breathe. On the other side, they are domestic resources, hence India wouldn’t have to rely on expensive imports.

And the best part? Renewable-energy is becoming increasingly affordable, creating new jobs in the process. So, switching to green energy isn’t just good for the environment – it’s a smart economic move for India’s booming future.

Types of Renewable Energy Stocks in India

The Indian stock market offers a diverse range of renewable energy stocks:

Clean Energy Stocks

This broad category includes companies involved in various renewable energy segments such as alternative transportation technologies.

Solar and Wind Energy Stocks

These stocks specifically represent companies focused on the production of solar and wind energy.

Hydroelectricity Stocks

Such companies use streaming water to generate hydrogen energy. At present, this segment is one of the most popular resources used and is expected to boom with time. 

Green Hydrogen Stocks

Green Hydrogen is produced through electrolysis powered by renewable energy sources. When used as fuel, it burns cleanly, emitting only water vapour (H2O) as a byproduct. 

Nitin Gadkari, India’s Minister for Road Transport and Highways, recently highlighted the potential of hydrogen-powered vehicles at an event. India has already released pilot projects to test the feasibility of using Green Hydrogen in transportation and other sectors. 

India is committed to clean energy and spearheading the National Green Hydrogen Mission, launched in 2023. This initiative aims to position the country as a global leader in Green Hydrogen production and potential major global exporter of green hydrogen.

Best Renewable Energy Stocks in India

Conducting thorough research and consulting a financial advisor is crucial before investing in any stock. However, some of the leading renewable energy companies listed on the Indian stock exchanges include:

Company	Stock Ticker	Brief Description
Tata Power Company	TATA POWER	India’s largest integrated utility company, with a significant focus on renewable-energy generation through solar and wind power projects.
JSW Energy	JSWENERGY	A leading Indian power company with a growing renewable-energy portfolio, including solar and wind farms.
Suzlon Energy	SUZLON	A prominent player in the Indian wind turbine manufacturing and wind power generation sector.
Borosil Renewables Limited	BOROSRENEW	A leading manufacturer of solar glass, a critical component in solar panels, contributing to the solar energy sector.
Greenpanel Industries Ltd.	GREENPANEL	A manufacturer of wind turbine blades and other components, supporting the wind energy sector.
Indian Energy Exchange (IEX)	IEX	India’s leading power exchange platform, facilitating electricity trading, including renewable-energy sources.
NTPC Limited (NTPC)	NTPC	India’s largest power generation company, actively expanding into renewable-energy sources like solar and wind power.
Siemens Gamesa Renewable Power	SGRE (Not Listed in India)	A global leader in wind turbine manufacturing with a significant presence in India.
Mahindra Renewables	Not Publicly Traded	A subsidiary of the Mahindra Group, focusing on solar and wind power development.

Union Budget 2023-24: Green Energy Stocks Take a Hike

The Indian government has shown a strong commitment to green energy. The Union Budget 2023-24 emphasized support for the sector through tax breaks, subsidies, and infrastructure development initiatives.

Budget 2023-24: A Green Push for India’s Future

India’s recent Union Budget for 2023-24 has placed a strong emphasis on sustainable development, with a particular focus on green energy. This move aligns with India’s vision for a cleaner and more secure future.

Here’s a breakdown of the key points:

India’s Green Vision

• The government has declared its commitment to achieving net-zero carbon emissions by 2070. This target shows an intent to significantly shift towards renewable-energy sources like solar and wind power.
• The budget aims to reduce India’s dependence on fossil fuels and their volatile prices. This not only benefits the environment but also strengthens India’s energy security.

Budgetary Boost for Green Energy:

• The budget has allocated ₹35,000 crore (approximately $4.6 billion) for priority investments in energy transition and Net Zero goals.
• A major portion of this budget is dedicated to providing capital support to oil marketing companies for undertaking clean energy projects. This will boost the adoption process of renewable energy solutions among markets and the general public.
• The budget also increased funding for the Ministry of New and Renewable Energy (MNRE) by over ₹2,000 crore (approximately $260 million), demonstrating a commitment to further developing renewable-energy infrastructure.

Subsidies for Electric Vehicles (EVs):

• Recognizing the potential of EVs, the budget proposes extending and expanding existing subsidies to promote their purchase.
• This aims to make EVs more affordable for consumers, thereby encouraging a shift away from traditional gasoline-powered vehicles.
• Increased adoption of EVs will lead to reduced air pollution in cities and contribute to India’s clean air goals.

This positive outlook has boosted investor confidence in green energy stocks, making them an attractive investment option for the future.

Best EV Stocks in India

The Indian EV market is expected to witness significant growth in the coming years. With the unwavering government support for electric vehicles (EVs) through subsidies and policies. Besides this, the rising fuel prices also make EVs more attractive and a growing eco-conscious society demanding cleaner air, the Indian EV sector is poised for explosive growth. This promising future is absolutely bringing change, with investors keeping a close eye on top EV stocks in India and the broader EV sector for exciting opportunities. 

Here are a few top EV stocks in India that investors are looking forward to growing exponentially:

Listed EV Company Stocks in India

Here are few listed electric vehicle (EV) companies investors are curious to invest in:

Company	Stock Ticker	Company Overview
Tata Motors	TATA MOTORS	Major automaker offering electric vehicles across segments (Nexon EV, Tigor EV) and expanding its EV portfolio and infrastructure.
Mahindra & Mahindra	MAHINDRA	Key players offering electric vehicles like eVerito and electric three-wheelers. Focuses on affordable electric mobility solutions.
Bajaj Auto	BAJAJ-AUTO	Established automaker with a growing presence in electric two-wheelers.
TVS Motor Company	TVSMOTOR	Founded automaker exploring and developing electric two-wheeler options.
Maruti Suzuki	MARUTI	Established automaker exploring and developing electric car options.
Ashok Leyland	ASHOKLEY	Established automaker that might be exploring or already has some EV offerings, particularly electric buses and trucks.
Eicher Motors	EICHERMOT	Established automaker that might be exploring or already has some EV offerings, particularly electric two-wheelers.
Hero Motocorp	HEROMOTOCO	Established two-wheeler manufacturer that might be exploring or already has some EV offerings.

Unlisted EV Company Stocks in India

Here are few unlisted companies of electric vehicle that holds a huge potential when it comes to expansion and growth in future:

Company	Company Overview
Ather Energy	Fast-growing electric two-wheeler manufacturer known for high-performance and tech-enabled scooters.
Greaves Cotton (GRENVS)	Major player in the electric two-wheeler segment with their Ampere brand.
Okinawa Autotech	Famous for particularly in the electric two-wheeler segment.
Ola Electric	Rapidly growing electric two-wheeler manufacturer known for its affordable scooters.
Hero Electric	Well-established player in the electric two-wheeler segment, known for its focus on low-cost and reliable electric scooters.
Revolt Motors	Known for its stylish and performance-oriented electric motorcycles.
PURE EV	Offers a range of electric two-wheelers.
WardWizard Innovations and Mobility	Popular for its YO Bikes electric two-wheeler brand.

Conclusion

Renewable and green energy are not just buzz words but the stepping stones to a sustainable future for India. As the nation strives for energy security and environmental responsibility, the renewable energy sector holds immense potential. By understanding the different types of renewable energy, exploring investment opportunities, and keeping an eye on government initiatives, individuals can contribute to India’s green energy journey. Remember, a well-informed investment strategy combined with a commitment to a greener future can lead to a win-win situation for both your finances and the planet.

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