Renewable energy sector in India and top stocks by market capitalisation

Explore the list of renewable energy stocks in India and how government initiatives and schemes are driving the sector toward a better future

By Forbes India

Published: Mar 26, 2025 04:55:11 PM IST

Updated: Mar 26, 2025 04:57:22 PM IST

Rising pollution levels and the constant depletion of natural resources have become pressing concerns in India today, and the environmental instability they lead to has caused plenty of controversies. The country’s high dependence on fossil fuels and its adverse impact on nature have naturally increased the demand for cleaner and greener energy sources. It’s the free market at work, and investors are participating in it to effect the change we all want to see.

According to the IMARC report, in 2024, the market valuation of renewable energy in India reached nearly $24 billion, with estimations indicating a growth to over $50 billion by 2033, growing at an annual rate of 8.1 percent. This steady rise reflects the country’s increasing investment in renewable energy stocks and infrastructure.

India now powers nearly half of its total electricity generation via renewable resources. The consumer and industrial adoption of solar, wind, hydro, and bio-energy, alongside growing investments in the brands' stocks in these industries, is reshaping the country’s energy landscape.

In this post, we’ll look at the list of renewable energy stocks and some leading government initiatives and schemes for clean energy solutions

List of renewable energy stocks

Here’s a list of leading renewable energy stocks based on the National Stock Exchange data, sourced on March 26, 2025.

#	Company	Market Cap (in ₹ crore)
1	Reliance Industries	17,22,400.42
2	Larsen & Toubro	4,74,297.86
3	Indian Oil Corporation	1,82,517.01
4	Adani Green Energy	1,44,234.08
5	Gail (India) Ltd	1,14,209.48
6	JSW Energy	96,564.21
7	NTPC Green Energy Ltd	84,010.51
8	Inox Wind	21,890.70
9	Indian Energy Exchange	15,933.41
10	Olectra Greentech	9,773.35
11	Borosil Renewables	6,461.10
12	Sterling and Wilson Renewables	5,790.66
13	Websol Energy System	4,576.01
14	Inox Green Energy Services	4,385.85

Renewable energy market growth and trends

India’s renewable energy sector has seen remarkable growth in recent years, positioning the country as one of the global leaders in clean energy adoption. As of October 2024, the Ministry of New and Renewable Energy stated that India’s total renewable energy capacity stood at 203 GW, accounting for over 46.3 percent of the nation’s total installed electricity generation capacity. This growth aligns with India's target of achieving 500 GW from renewable sources by 2030.

While countries like the US and China lead in absolute capacity, India’s 13.5 percent annual growth rate in renewable energy adoption reflects its push toward sustainability. Although thermal power currently dominates the entire energy sector, according to the National Power Portal, solar power leads the renewable energy sector with around 100 GW capacity. Wind energy (~48 GW), hydropower (47 GW), and biomass and biogas (11.4 GW) production also highlight the mix of renewable energy in India.

Government initiatives, foreign and renewable energy stock investments, and policy reforms continue to drive this rapid momentum. With a focus on sustainability, India’s Nationally Determined Contributions (NDCs) under the Paris Agreement seek to reduce harmful emissions by at least 45 percent in the next five years and achieve net-zero greenhouse gas emissions by 2070. These efforts highlight why renewable energy is essential to reducing carbon footprint, enhancing energy security, and promoting overall economic growth.

Government initiatives in the renewable energy sector

If you’re planning to invest in renewable energy stocks, know which companies are implementing government policies and schemes:

Promotion of clean energy

The Indian Government is boosting clean energy through initiatives like the solar rooftop phase (PM Surya Ghar) and high-efficiency solar PV modules, encouraging greater renewable energy adoption. The National Green Hydrogen Mission and initiatives focused on mangrove conservation and environmental restoration indicate India's commitment to a sustainable and low-carbon future.

Green Energy Corridor scheme

The Green Energy Corridor (GEC) aims to create intra-state and inter-state transmission systems for renewable energy projects. The projects are being executed in regions like Himachal Pradesh, Rajasthan, Tamil Nadu, Karnataka, Ladakh, and others. Phase II of the inter-state project focuses on Ladakh, supporting 13 GW of renewable energy with a 12000 MWh battery energy storage system, ensuring reliable power supply across villages.

PM-KUSUM

Launched in 2019, PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) provides energy security to farmers while supporting India's goal of 40 percent non-fossil fuel power capacity by 2030. This scheme includes setting up decentralised renewable power plants on barren land (Component A), installing standalone solar pumps (Component B), and solarising grid-connected pumps (Component C), enabling farmers to generate and sell power.

Wind-Solar Hybrid policy

The National Wind-Solar Hybrid Policy, issued May 14, 2018, promotes large, grid-connected wind-solar PV hybrid systems. Its main goal is the optimal use of wind and solar energy, transmission infrastructure, and land. The policy encourages the united operation of wind and solar PV plants along with advanced technologies. By December 31, 2023, about 1.44 GW of hybrid projects were authorised. In the same year, India was ranked fourth globally in wind and solar power capacity.

Union budget allocation

In the 2025-26 budget announcement, the Finance Minister allotted a funding of ₹26,549 crores for the Ministry of New and Renewable Energy. With around ₹24,224 crores, the solar energy sector was allocated the major amount, including PM-KUSUM and PM Surya Ghar initiatives. The Green Energy Corridor scheme and the National Green Hydrogen Mission bagged ₹600 crores each for future development and growth, and around ₹325 crores were set aside for the bioenergy programmes.

IREDA financing scheme

IREDA (Indian Renewable Energy Development Agency Limited) provides various financing schemes to support renewable energy projects. These include loans for rooftop solar PV, biomass projects, compressed biogas production, and wind and solar power projects. IREDA also provides bridge loans, credit enhancement guarantees, and specialised products for funding through bonds and other financial instruments. This helps increase the growth and adoption of renewable energy in India.

Pradhan Mantri JI-VAN Yojana

The Pradhan Mantri JI-VAN Yojana was initiated in 2019 and amended in 2024. It supports advanced biofuel (especially bioethanol) projects using lignocellulosic biomass and other renewable residues. The five-year scheme extends to 2028-29 and promotes the Make in India Mission. It offers remunerative income for farmers, addresses pollution, creates local employment options, and contributes to energy security and self-reliance.