SolarSquare has raised $40 million in what’s the largest enterprise spherical in India’s photo voltaic sector.
The Mumbai-based startup bootstrapped and was worthwhile promoting to company clients for 5 years earlier than switching to residential photo voltaic in 2021. Now it has scaled to powering over 20,000 houses and 200 housing societies throughout India, and is India’s largest operator of distributed photo voltaic belongings.
“That is the chance of a lifetime,” Shreya Mishra, co-founder and chief govt of SolarSquare, instructed TechCrunch in an interview. “It’s not simply an trade that’s rising superfast — it’s the place revenue and function align.”
In contrast to others within the house, SolarSquare ensures returns on photo voltaic investments and compensates clients if programs don’t ship, making its full-stack service — promoting the programs, putting in them to the buyer’s rooftop, and providing after-sales providers — far more compelling. The general price of shopping for and having the system put in averages about $1,500.
“If we promise you’ll get 5,000 models of electrical energy from photo voltaic however you find yourself getting solely 4,000 models, we pays you again for the stability 1,000 models,” Mishra mentioned. “This makes photo voltaic like a set deposit for patrons as a result of return on funding is assured.”
Because of latest incentives offered by the federal government, photo voltaic curiosity has surged lately. The push is important as solely about 1% of Indian houses have at the moment adopted photo voltaic, in comparison with nations like Australia, the place 35% houses have photo voltaic, and Brazil, the place greater than 5% houses have photo voltaic.
“Two years again, individuals solely had textbook information — they realized at school that photo voltaic is one thing good,” Mishra mentioned. “They didn’t understand how a lot it price, they didn’t find out about authorities subsidies, they didn’t know that the payback interval is actually 4 to five years.”
India has set an formidable goal of reaching 500 gigawatts of renewable vitality capability by 2030, with solar energy anticipated to contribute about 280 gigawatts to this objective. To speed up photo voltaic adoption, Modi’s authorities has launched a number of incentives, together with a production-linked incentive scheme value $3 billion to spice up home photo voltaic manufacturing, 40% primary customs obligation on photo voltaic modules to guard native trade, and viability hole funding for utilities to construct photo voltaic infrastructure in distant areas.
The federal government additionally affords accelerated depreciation advantages, revenue tax holidays for photo voltaic tasks, and capital subsidies starting from 20% to 70% for rooftop photo voltaic installations, whereas additionally mandating renewable buy obligations for state utilities to make sure regular demand for solar energy. SolarSquare helps its clients determine and avail the advantages of the federal government subsidies, Mishra mentioned.
“India is the primary nation on the earth to make net-metering, this change of electrical energy, a shopper proper that makes economics extra viable as you’re capable of freely commerce electrical energy with the grid,” she mentioned.
The demand for photo voltaic is slowly extending nicely past main cities. “In contrast to quick-commerce or companies that concentrate on high 10-15 cities, photo voltaic is definitely a nationwide, Bharat form of enterprise,” Mishra mentioned. “Individuals in Tier 1, Tier 2, Tier 3 cities in addition to rural India — in all places there are houses, individuals will wish to go photo voltaic.”
SolarSquare will deploy the recent funds to develop from 20 to 50 cities, however is taking a cautious method. “As entrepreneurs, we’re not in a enterprise of ‘transfer quick and break issues,’” she mentioned. “Once you’re doing a critical product like photo voltaic, enjoying with individuals’s life and security, there must be that quantity of seriousness.”
For smaller cities, the startup plans to work with native companions whereas sustaining high quality management.
The timing works in SolarSquare’s favor. India has made net-metering a shopper proper and minimize down allow processing from months to days.
Lightspeed led the funding, a Collection B financing spherical, with Lightrock becoming a member of, alongside current traders Elevation Capital, Chris Sacca’s Lowercarbon, and Nithin Kamath’s Rainmatter. The startup, which had raised $19.5 million beforehand, can even put money into expertise to construct higher programs for monitoring and managing residential photo voltaic installations remotely.
“We’re thrilled to be partnering with Photo voltaic Sq., which has quick emerged as probably the most trusted residential photo voltaic model in India,” mentioned Lightspeed companion Rahul Taneja in an announcement. “The clear vitality transition has moved from ESG PowerPoint decks to the shoppers ‘ houses and Photo voltaic Sq. is nicely on its option to making #hargharsolar.”
