Top 3 Solar EV Charging Infrastructure Stocks to Add to Your Watchlist

With the rising preference for EVs over traditional combustion engine vehicles, the need for an extensive charging network is becoming increasingly apparent.

Within this dynamic market, a niche market that is gaining recent attention is solar EV charging.

Solar energy and electric vehicles (EVs) hold the key to transforming the mobility sector to the next age and have given rise to a new generation of forward-thinking companies, leading the charge in the green mobility revolution.

Solar-powered EV charging stations are a promising, eco-friendly, cost-effective solution with many benefits for the consumer, economy and India's climate goals.

With India's potential to generate 749 GW of solar power, which is more than the country's current installed capacity, this is an untapped opportunity, which is slowly gaining momentum.

Here are the top 4 solar EV charging stocks to watch out for.

#1 Tata Power

First on this list is Tata Power.

Tata Power Solar, a subsidiary of Tata Power, is a pioneer in the solar energy sector and has extended its expertise into electric vehicle charging infrastructure.

The company's solar EV charging stations not only harness the sun's power but also offer fast charging capabilities, making it an attractive choice for EV users.

Further, its holding company, Tata Power, plans to install EV chargers all over India, with an expected 100,000 charging stations over the next 10 years.

The company has tied up with Tata Motors to provide home charger solutions to every EV owner.

It has already installed nearly 15,000 home chargers and almost two thousand public chargers in over 160 cities and highways between cities.

Besides this, the company also provides fleet charging facilities along with captive charging for public transportation and buses at their depots.

As the company continues to expand its network of charging stations, it plays a pivotal role in India's transition towards cleaner and sustainable transportation.

On March 5, 2024, Tata Power Solar solidified its commitment to promoting solar rooftop adoption by partnering with Union Bank to enhance affordability.

In February 2024, EV ride-sharing platform BluSmart announced a deal with Tata Power to recharge its electric cabs using solar energy, ensuring no fossil fuels are used in their operation.

Looking ahead, the company is actively seeking additional partnerships to further contribute to the nation's clean energy initiatives.

#2 Visaka Industries

Next on the list is Visaka Industries.

Visaka Industries is engaged in the business of manufacturing cement fibre sheets, fibre cement boards and panels, solar panels and synthetic yarn.

The company operates in two segments: building products and synthetic Yarn. The building products segment produces asbestos sheets, solar panels, accessories used as roofing material and non-asbestos flat sheets and sandwich panels used as interiors.

The synthetic yarn segment manufactures Yarn out of blends of polyester, viscose, and other materials which go into fabric weaving.

Taking note of the opportunity in the solar space, the company launched a solar roofing product called ATUM in 2018.

This is India's first 100% green EV charging station. It is powered by ATUM Solar Roof, making it a completely sustainable alternative to existing EV charging units, which use thermal power generation, one of the primary sources of pollution.

ATUM Charge has also completed the installation of 250 universal electric vehicle charging stations in India, with 48 units in Telangan.

Further, in January 2024, the government unveiled its ambitious Pradhan Mantri Suryodaya Yojana, aiming to implement rooftop solar installations on an impressive scale of 10 million (m) houses.

This represents a significant leap from the current estimate of approximately 7 lakh households equipped with rooftop solar systems. The visionary plan, spearheaded by Prime Minister Modi, seeks to amplify the existing installations by a remarkable 15 times.

Capitalising on their expertise in this domain, Visaka Industries is poised to capitalise on this monumental opportunity.

Further, with the EV market on the rise and Visaka's expertise in the solar sector, the company is well-positioned to enjoy the advantages of solar EV charging stations.

The company strategically plans to expand its production capacities to align with the escalating market demands, positioning itself to play a pivotal role in the widespread adoption of solar technology.

This rooftop solar stock is already up 60% in the last few weeks. For more details, check out our recent editorial This 'Rooftop Solar' Penny Stock is Flying. Should We Turn Bullish?

#3 Servotech Power

Another Notable Mention

So these were the top 3 listed companies doing something towards the solar EV charging infra space.

Apart from that, 2 more unlisted companies are taking serious efforts towards the solar EV charging ecosystem.

These include ReNew Power and Ather Energy.

# Ather Energy

Ather Energy is a leading Indian electric vehicle (EV) company focusing on premium electric scooters.

The company designs, manufactures and sells high-performance electric scooters.

Ather is known for its technologically advanced electric scooters.

The company is at the forefront of the electric vehicle (EV) revolution in India, specifically focusing on premium electric scooters. It is not only committed to producing EVs but also involved in building EV ecosystems.

Ather Energy has ventured into establishing a charging infrastructure network known as the Ather Grid. This network focuses on offering electric vehicle users convenient access to charging points strategically positioned across various cities.

Although Ather Energy is primarily known for manufacturing electric scooters, their Ather Grid initiative marks their entry into the realm of Charge Point Operators (CPOs), contributing significantly to the growing EV charging infrastructure in India.

This charging infrastructure initiative includes solar-powered charging stations in various cities.

The company is looking forward to coming out with an IPO as early as the second half of 2024, depending on market conditions.

The company could seek to raise as much as US$ 400 m in a share sale.

# ReNew Power

ReNew Power is a subsidiary of ReNew Energy Global.

ReNew Energy Global is a decarbonisation solutions company based in India.

It is the first Indian renewable energy company to get listed on NASDAQ. ReNew operates more than 140 projects spread across nine states in India. The company provides decarbonisation solutions through a mix of green hydrogen, data-driven solutions, storage, manufacturing, and carbon markets.

ReNew Power is actively diversifying its portfolio by investing in solar EV charging infrastructure. Their solar charging stations are equipped with state-of-the-art technology to provide efficient and sustainable charging solutions.

In line with this, ReNew Energy Global Plc, India's leading decarbonization solutions company, through its subsidiary ReNew Power Pvt. Ltd (ReNew) and clean energy solutions provider Gentari, through its subsidiary Gentari Renewables India Pte executed key terms to collaborate on a 50:50 joint venture in clean energy solutions.

As part of this proposed joint venture, Gentari and ReNew will collaborate to explore investments into the development of renewable assets, including solar, wind and energy storage, to achieve a target of 5GW in renewable energy capacity.

Further, as part of its growth strategy, ReNew has joined hands with AES and Siemens-backed Fluence to form an equal venture for the energy storage business in India. ReNew has also partnered with state-run Indian Oil Corporation and Larsen and Toubro to form a tripartite venture for the green hydrogen sector in India.

Going forward, the company is targeting to invest around Rs 440 bn till the end of FY26 to add up to 9 gigawatts of capacity. This will further help the company with the solar EV charging infrastructure expansion plan.

In Conclusion

The solar-powered EV charging infrastructure market is currently niche as it increases the initial setup cost compared to stations solely reliant on the grid.

Moreover, solar-powered EV charging infrastructure adoption poses a challenge for small-scale operators, requiring substantial investment in solar panels.

To address these challenges, the government has initiated various measures to encourage the widespread adoption of solar-powered EV charging stations.

In March 2021, the Ministry of Power issued guidelines mandating public EV charging stations to integrate solar panels, constituting at least 10% of the total charging station capacity.

Furthermore, the government has introduced incentives and subsidies to promote EV adoption and solar-powered charging infrastructure.

The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme provides financial incentives to EV buyers and supports the development of EV charging infrastructure across the country.

Subsidies of up to 40% for residential EV charging station installations and up to 25% for public charging stations have also been announced.

With projections indicating the presence of 102 million EVs in India by 2030, necessitating 2.9 million public charging stations, these government initiatives are poised to strengthen the company's position in the evolving EV landscape.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...