The transition to green energy is accelerating worldwide, and Foreign Institutional Investors (FIIs) are making their mark. With climate change and sustainability becoming top global priorities, renewable energy companies, especially those involved in solar, wind, and hydropower, are attracting increasing investments.
As of February 2026, FIIs are backing the green energy sector like never before, fueling a growth surge in these stocks. This article examines the top 5 green energy stocks global investors are focused on, exploring the reasons behind their interest and how they are positioned to capitalize on the booming green energy revolution.
5 Green Energy Stocks
| Stock | Primary Business | Why FIIs Are Watching |
|---|---|---|
| Adani Green Energy | Solar & Hybrid Renewables | Market leader, extensive solar pipeline, government backing |
| NTPC Green Energy | Solar, Wind, & Diversified | Backed by India’s largest power utility, aggressive growth |
| Tata Power | Solar, Wind, & Distribution | Integrated energy player, robust renewable investments |
| JSW Energy | Solar, Wind & Conventional | Balanced energy portfolio with renewable expansion |
| Suzlon Energy | Wind Turbines Manufacturing | Leading wind turbine maker, global presence |
Why Are FIIs Betting Big on Green Energy Stocks?
1. Climate Commitments and Policy Support
Global governments and corporations are increasingly committing to net-zero emissions by 2050, leading to a massive push toward decarbonization. These commitments are backed by supportive policies and incentives for renewable energy companies.
With initiatives like the Paris Agreement and the EU Green Deal, FIIs are aligning their investments with these global goals, ensuring long-term stability in the renewable sector. In India, government schemes like the National Solar Mission and Green Energy Corridors have also boosted investor confidence.
2. Strong Demand for Renewable Energy
Renewable energy, especially solar and wind, has become more competitive compared to traditional energy sources. The falling cost of solar panels and wind turbines, combined with the growing efficiency of energy storage solutions, has made green energy a more attractive option for countries and companies.
With India, China, and the U.S. ramping up their renewable energy capacities, demand for companies in the green energy space is soaring.
3. FIIs’ ESG Focus
Foreign investors are increasingly incorporating Environmental, Social, and Governance (ESG) factors into their investment strategies. Green energy companies, with their focus on sustainability and reducing carbon footprints, naturally fit into this framework.
FIIs that emphasize responsible investing are turning to stocks in the green energy sector, as they offer not only financial growth but also align with their social impact goals.
Top 5 Green Energy Stocks FIIs Are Betting on in February 2026
1. Adani Green Energy Ltd – Market Leader with an Expansive Solar Pipeline
Adani Green Energy Ltd (AGEL) is one of India’s largest and most prominent renewable energy players, with a focus on solar and hybrid renewable energy projects. The company boasts an impressive portfolio of over 10 GW of operational assets, with a development pipeline exceeding 25 GW.
Why FIIs Are Interested:
- Largest Solar Capacity: AGEL’s capacity pipeline and high profile in solar energy make it a go‑to name for FIIs looking to invest in India’s renewable growth.
- Government Support: As part of the Adani Group, AGEL benefits from extensive resources and strong government backing, particularly in India’s push for renewable energy.
- Sustainability Focus: AGEL’s large-scale projects are aligned with India’s long-term renewable energy goals, making it an attractive option for ESG-focused funds.
AGEL’s performance and growth prospects have made it a top pick for institutional investors targeting India’s renewable energy market.
2. NTPC Green Energy Ltd – Backed by India’s Power Giant
NTPC Green Energy Ltd, a subsidiary of NTPC Ltd, India’s largest power utility, focuses on solar, wind, and green hydrogen projects. With a target to achieve 60% renewable energy capacity by 2032, NTPC Green is well-positioned to grow rapidly.
Why FIIs Are Interested:
- Strong Parentage: NTPC’s financial strength and market leadership in power generation provide significant stability to NTPC Green Energy.
- Diversified Renewable Portfolio: NTPC Green’s focus on solar, wind, and green hydrogen offers investors exposure to multiple growth drivers in the renewable sector.
- Commitment to Clean Energy: NTPC’s aggressive expansion into green energy aligns with global efforts to decarbonize, positioning the company as a key player in India’s renewable future.
FIIs see NTPC Green Energy as a reliable, low-risk investment with substantial upside potential as the company scales its renewable capacity.
3. Tata Power Ltd – Integrated Energy Player with Significant Renewable Investments
Tata Power is one of India’s most diversified utilities, involved in generation, transmission, distribution, and renewables. Tata Power is expanding its solar and wind capacity, with a target to add 20 GW of renewable energy by 2025.
Why FIIs Are Interested:
- Integrated Business Model: Tata Power’s hybrid model — combining renewable generation with distribution networks — provides a diversified revenue stream.
- Strong Brand and Financial Strength: As part of the prestigious Tata Group, Tata Power benefits from financial backing and a strong reputation.
- Government Backing: Tata Power is well-positioned to benefit from India’s government-led green energy incentives and long-term growth in renewables.
Tata Power’s commitment to sustainability and its large-scale renewable projects have caught the eye of global institutional investors.
4. JSW Energy Ltd – Renewables with Conventional Backbone
JSW Energy is a diversified energy company with a strong presence in both conventional energy and renewable projects. The company is expanding its solar and wind energy capacity with a target of 10 GW of renewable capacity by 2030.
Why FIIs Are Interested:
- Balanced Energy Portfolio: JSW Energy’s mix of conventional and renewable assets provides stability while positioning it for future growth in renewables.
- Expansion in Renewables: With a growing share of solar and wind energy, the company’s future prospects are aligned with global clean energy trends.
- Financial Stability: Backed by the JSW Group, one of India’s largest conglomerates, JSW Energy has the financial resources to expand its renewable footprint.
JSW Energy’s mixed portfolio makes it a compelling choice for investors seeking diversification within the energy sector.
5. Suzlon Energy Ltd – Wind Turbine Leader with Global Reach
Suzlon Energy is a leading manufacturer of wind turbines and has been a key player in India’s wind energy sector for over two decades. The company is also involved in wind farm development and operations & maintenance services.
Why FIIs Are Interested:
- Wind Energy Leadership: Suzlon is the largest player in wind turbine manufacturing in India, giving it a dominant position in the country’s growing wind energy market.
- Global Expansion: With projects in over 20 countries, Suzlon benefits from the global push for wind energy and increasing investments in clean energy infrastructure.
- Improved Financials: After restructuring, Suzlon’s improved profitability and project execution capabilities make it an attractive growth stock.
Suzlon is gaining attention from FIIs looking for exposure to wind energy manufacturing and services, particularly as wind energy becomes an integral part of India’s renewable energy landscape.
Related Links
Solar Panels are Out, Solar Tiles are In! Tesla-Style Roofs are Finally Arriving in India
Forget Panels! This Revolutionary ‘Solar Paint’ Turns Your Home Walls into a Power Station
Emerging Trends in Green Energy Investment
Technological Innovation
Technological advances such as energy storage, smart grids, and battery innovations are set to further drive the growth of green energy stocks. Innovations in solar panel efficiency and wind turbine technology are also crucial for driving down costs and improving returns on investment in the renewable sector.
The Role of Government Policy
Government support is a key driver for green energy companies. Policies such as subsidies, tax incentives, and green bonds provide favorable conditions for growth. As countries globally move towards net-zero emissions, these policies are expected to continue supporting the green energy market.
As FIIs continue to seek long‑term growth opportunities, green energy stocks are emerging as key investments in 2026. Companies like Adani Green Energy, NTPC Green Energy, Tata Power, JSW Energy, and Suzlon Energy are benefiting from strong government policies, technological advancements, and growing demand for renewable energy.
With the world moving toward net-zero emissions, these companies are well‑positioned for long‑term growth, making them top picks for global investors looking to capitalize on the green energy boom.
