Rooftop Solar Scheme: Borosil Renewables, Tata Power and Waaree to gain big; check out other beneficiaries

Rooftop Solar Scheme, PM Modi announces Rooftop Solar scheme: Shares of solar panel manufacturers and power companies such as Tata Power, Borosil Renewables, IREDA, Waaree Renewable Technologies, and Sterling and Wilson Renewable Energy buzzed in the trade on Tuesday, January 23, with gains of up to 18.56 per cent. The stocks were in heavy demand after PM Narendra Modi on Monday announced the 'Pradhan Mantri Suryodaya Yojana'.

This scheme not only addresses the immediate needs of millions but is also expected to propel our nation towards energy self-sufficiency. The scheme's impact resonates across the entire solar supply chain, which may lead to the creation of demand right from the level of panel glass to aluminium to solar modules and various components associated with them. This, in turn, will not only aid the industry's growth but also serve as a catalyst for employment generation, said Hitesh Doshi, Chairman, of Waaree Group. 

"With India already at a local manufacturing capacity of 62.85 GW for solar PV, complemented by the upcoming 39.6 GW under the PLI scheme, the nation is prepared to meet the demands of this project. The scale of this order is expected to ensure a seamless supply and cost benefits that will be passed on to end consumers," Doshi added.

Borosil Renewables marked a fresh 52-week high of Rs 601.5.

"Today, on the auspicious occasion of the consecration of life in Ayodhya, my resolve has been further strengthened that the people of India should have their solar rooftop system on the roof of their houses," the PM was quoted as saying in the press release released on Monday, January 22.

Websol Energy was another stock from the segment that hit a 10 per cent upper circuit and marked a fresh 52-week high of Rs 300.85 per share intraday.

"The first decision I have taken after returning from Ayodhya is that our government will launch “Pradhanmantri Suryodaya Yojana” with the target of installing rooftop solar on 1 crore houses, the press release added.

This will not only reduce the electricity bill of the poor and middle class but will also make India self-reliant in the field of energy, added PM Modi.

Borosil Renewables is into the manufacturing of solar glass, solar PV, and bifacials. The company has also installed solar rooftops on the Indian Railways. Borosil has a target of 280 GW of installed solar capacity by 2030.

Waaree Renewable Technologies is involved in providing solar EPC and solutions. The company earns 100 per cent revenue from the solar energy segment. The company has bagged many solar rooftop projects and has L&T, BPCL, and Mumbai Metro among its leading clientele.

Websol Energy is a manufacturer of photovoltaic monocrystalline solar cells and modules in India. Till September, the country's solar module manufacturing capacity had been 38 GW. Additionally, 65 GW of capacity will be added. In 2–3 years, the country's capacity would soar to 100 GW.

The country's renewable energy hit the milestone by crossing the 70,000 MW mark in installed solar power capacity recently.

Rooftop Solar Scheme: Companies that stand to benefit

According to Ravi Singhal, CEO of GCL Broking, local solar manufacturing companies such as Adani Green, Waaree, and Borosil could benefit as they will get contracts for solar panel manufacturing. Meanwhile, cable companies like KEI Industries and Polycab will also benefit as they can contribute towards installation. Further, renewable finance companies such as IREDA also stand to gain from the scheme, as manufacturing companies will require finance.

Similarly, battery companies such as Exide and Insolation Energy will also see increased demand for electricity storage.

On similar lines, Omkar Kamtekar Research Analyst Bonanza Portfolio believes the implementation of the Pradhan Mantri Suryodaya Yojana scheme is expected to increase demand for solar rooftop companies such as Tata Power, Gensol Engineering, Waaree Renewable Technologies, and others.

Atul Parakh, CEO of Bigul, expects Waaree Energies, Tata Power, Websol Energy Systems, Surana Solar, Adani Green Energy, and KPI Green Energy to benefit most from the government’s recent policy announcement.

Further, Bigul's Parakh reckons banks and NBFCs will also benefit as they may encourage the development of financial products like rooftop solar-specific loans or leasing options. Companies such as Exide Industries and Amara Raja Batteries, which produce other solar energy components like inverters and batteries, will also see increased demand for their products.

On the other hand, Vaibhav Jain, Head of Content & Education, Share.Market Research (PhonePe Wealth), said, "Investors must keep in mind that this scheme might not impact the power distribution companies as much as residents will generate power for their consumption, but the distribution of excess power will happen through the grid of these distribution companies."

Zee Business expects an indirect benefit for smart meter companies

HPL Electric

The company provides metering and solar solutions. It received an order worth Rs 2,000 crore for smart meters, and 85 per cent of the orders in the current meter order book are for smart meters. The company has an electronic meter capacity of 11 million units. 

Genus Power

Genus Power provides a complete range of electricity meters and solutions. It is the first company to supply 1.5 crore smart meters in the Asia Pacific, and its total order book is Rs 19,000 crore. It has a 70 per cent market share in smart meters.

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