Best Solar Stocks in May 2025: Adani Green, SJVN, Orient Green, BF Utilities Shine Based on 5-Year CAGR

India is rapidly advancing in the solar energy sector, driven by the government’s strong push for renewable energy adoption. The country’s installed solar capacity has surged from just 2.6 GW in 2014 to 84.27 GW, marking a major achievement in its clean energy ambitions. This growth has made India the 5th largest producer of solar power globally, reflecting its focus on cutting carbon emissions and strengthening energy independence.

With the sector on an upward trajectory, solar energy stocks are attracting increasing attention from investors. Several leading solar companies listed on Indian stock exchanges are playing a crucial role in this green energy transformation, offering attractive investment opportunities in one of the country’s most dynamic and rapidly expanding sectors.

Let’s look at the best solar stocks in May in India based on 5-year CAGR, market cap and net profit margin. 

Best Solar Stock in May 2025 Based on 5-Year CAGR

Note: The best solar stocks list is as of May 09, 2025 and are sorted based on the 5Y CAGR. 
Read More, Best Ethanol Stocks in May 2025 Based on 5Y CAGR: Piccadily Agro, Triveni Engineering & More.  

Overview of the Best Solar Stocks in May 2025

1. Orient Green Power Company Ltd

Established in 2006 in Chennai, Orient Green Power Company Limited is a prominent independent power producer focusing on wind energy. The company has set up wind farms across Tamil Nadu, Andhra Pradesh, Gujarat, Karnataka, and even internationally in Croatia. 

In Q3 FY25, the company posted a total income of ₹34.50 crore, marking a modest 1.53% year-on-year growth. Despite the revenue uptick, it incurred an operating loss of ₹10.39 crore and a net loss (PAT) of ₹24.02 crore. The EBITDA stood at ₹16.67 crore, while the operating margin remained negative at -30.12%.

Key metrics:

• Earning per share (EPS): ₹-0.21
• Return on equity (ROE): -2.10%

2. SJVN Ltd

SJVN Limited, previously known as Satluj Jal Vidyut Nigam, is a government-owned company involved in power generation and transmission in India, Nepal, and Bhutan. Founded in 1988 and headquartered in Shimla, the company develops and operates hydro, wind, and solar energy projects, and also provides consultancy services in the power sector.

For Q3 FY25, SJVN posted a net profit of ₹138.97 crore. Its total income rose to ₹760.76 crore, up from ₹607.72 crore in the same period last year.

Key metrics:

• EPS: ₹2.55
• ROE: 6.87%

3. BF Utilities Ltd

BF Utilities Ltd is an Indian enterprise engaged in power generation through wind energy and infrastructure development. The company plays a role in promoting renewable energy by operating wind farms and supporting infrastructure expansion across the country.

In Q3 FY25, the company recorded net sales of ₹8.92 crore for the quarter ending September 2024, reflecting a 13.29% decline compared to the same period last year. Despite the drop in revenue, its EBITDA rose by 37.87% to ₹2.33 crore from ₹1.69 crore a year earlier. However, the quarterly net loss increased significantly by 166.16% to ₹0.97 crore.

Key metrics:

• EPS: ₹6.71
• ROE: 15.33%

4. Adani Green Energy Ltd

Adani Green Energy Limited (AGEL) is a leading renewable energy company in India that builds, owns, and operates solar, wind, and hybrid power projects. It supplies clean electricity to both government and corporate clients, using advanced technologies to lower the Levelised Cost of Energy (LCOE) and boost efficiency.

In Q3 FY25, AGEL reported strong performance driven by capacity growth and enhanced operational efficiency. Revenue from power supply rose by 13% year-on-year to ₹1,993 crore, while EBITDA also increased by 13% YoY to ₹1,848 crore, reflecting the company’s solid operational momentum.

Key metrics:

• EPS: ₹2.35
• ROE: 4.91%
   

Best Solar Stock in May 2025 Based on Market Cap

Note: The best solar stocks list is as of May 09, 2025 and are sorted based on the market cap. 

Best Solar Stock in May 2025 Based on Net Profit Margin

Note: The best solar stocks list is as of May 09, 2025 and are sorted based on the 5Y CAGR. 

Key Considerations Before Investing in Solar Energy Stocks in India

India’s shift toward renewable energy has sparked growing interest in solar power stocks. However, before investing in leading solar companies, it’s important to assess a range of factors that can influence potential returns. From financial strength to policy backing, several elements shape the performance of solar investments.

1. Financial Health

The financial performance of a solar company is a vital measure of its resilience and profitability. Investors should evaluate metrics such as revenue trends, profit margins, cash flow, and overall financial stability. Companies with a solid financial base and a history of consistent earnings are generally better equipped to handle market uncertainties.

2. Impact of Global Economics and Market Uncertainty

Solar energy companies depend on global supply chains for components like solar panels and lithium-ion batteries, making them sensitive to international market changes. Economic shifts, currency volatility, trade policies, and supply disruptions can directly affect production costs and profit margins. Staying informed about these macroeconomic trends is key to evaluating risk.

3. Competitive Advantage in a Fast-Growing Sector

As demand for solar energy increases, the sector is becoming more competitive. Investors should focus on companies that have a lasting edge—be it through innovation, efficient cost structures, strong brand recognition, or a robust project pipeline. Such advantages can help companies maintain growth in an increasingly crowded market.

4. Policy Framework and Regulatory Support

Government initiatives such as subsidies, tax incentives, and supportive regulations play a major role in the success of solar firms. Monitoring policy developments, tariff changes, and other regulatory factors is essential. A favorable policy environment can significantly boost the growth potential of solar investments.

Challenges in Solar Stocks Investing

1. High Capital Requirements and Delayed Returns

The solar industry often requires large upfront investments for infrastructure and equipment. These projects typically have long payback periods, which may not appeal to those seeking quick gains. Efficient capital management is critical for companies in this space.

2. Heavy Import Dependency and Weak R&D

Despite expanding capacity, India’s solar sector is still reliant on imports for key components, making it vulnerable to international price and supply shocks. Additionally, limited domestic research and innovation reduce competitiveness on a global scale.

3. Land and Regulatory Complexities

Large solar projects often face challenges in acquiring land due to environmental, legal, and bureaucratic hurdles. Delays in obtaining permits or government clearances can slow down execution and affect a company’s revenue timelines.

4. Low Awareness and After-Sales Limitations

While awareness about solar energy is rising, adoption—especially in rural areas—is still low. Issues like insufficient after-sales service, poor maintenance, and limited trust in implementation partners continue to hinder growth. Evaluating how a company addresses these issues can help assess its long-term outlook.

Conclusion

India’s solar energy market holds significant investment potential, supported by expanding capacity, favorable policies, and growing clean energy demand. However, investors should carefully assess factors like financial strength, global risks, and regulatory landscape. Despite hurdles such as high costs, import dependency, and land-related issues, companies with sound fundamentals and strategic advantages are best positioned to succeed in India's green energy journey.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.