The renewable energy sector is widely considered the future across the world, with sustainable practices commanding prominence. Although India gives special attention to the sector, renewable energy stocks have showcased only mixed performance in 2025.
How Renewable Energy Stocks Performed in 2025
While Adani Green Energy shares dropped a little over 2 percent, Premier Energies fell about 32 percent. Since its listing in August 2025, Vikram Solar shed nearly 33 per cent.
Some companies managed gains. Waaree Energies rose 1.25 per cent during the same period. Inox Green Energy Services did better, climbing 10.5 per cent. On the other hand, Sterling and Wilson Renewable Energy fell sharply, losing more than 54 percent, while KPI Green Energy dropped 27.61 percent.
Reasons for the Decline
Several factors explain why renewable energy stocks struggled in 2025. According to a report by Upstox, one reason is a slowdown in government activity. Authorities decided to reduce the pace of renewable energy tenders until the financial year 2026-27, citing grid overload. Renewable Energy Secretary Santosh Kumar Sarangi said that India is currently producing more green electricity than the national grid can absorb. Oversupply leads to many projects waiting to be connected. The pause is meant to strengthen the grid and improve project quality.
Oversupply in Solar Panels
Manufacturing capacity of the solar industry has strengthened while actual installations remain weak. With factories producing more than being used, prices of solar panels dropped, and the companies face the challenges of underutilisation. Moreover, heavy FII selling, trade concerns, and a falling rupee also affected the sentiments.
What to Expect in Future
With a goal of 500 gigawatts of non-fossil fuel capacity by 2030, Indian renewable sector’s long-term outlook remains stable. By 2026, the amount of new renewable energy capacity is expected to double with additional projects in the pipeline.
The report says that despite volatility in the short and medium term, the renewable energy remains promising given the high electricity demand and the country’s commitment to the future.
Brokerage View
According to Trendlyne’s report, Motilal Oswal (target price:385 rupee) and ICICI Securities (target price 350 rupee) has strong buy signals for ACME Solar Holdings stock. Siemens Energy India attract both buy and hold recommendations.