[ad_1]
SolarSquare has raised $40 million in the largest investment round in the solar sector in India.
The Mumbai-based startup began selling to corporate customers and was profitable for five years before pivoting to residential solar in 2021. It has now expanded to power over 20,000 homes and 200 housing societies across India, and India’s largest operator of distributed solar assets.
“This is an opportunity of a lifetime,” said Shreya Mishra, co-founder and CEO solarsquare“It’s not just an industry that’s growing by leaps and bounds — it’s where profit and purpose align,” he told TechCrunch in an interview.
Unlike other companies in this space, SolarSquare guarantees returns on solar investments and compensates customers if systems aren’t delivered, which makes its full service — selling the systems, installing them on the consumer’s roof, and providing after-sales service — that much more compelling. The total cost to purchase and install the system is about $1,500.
“If we promise you that you will get 5,000 units of electricity from solar energy but you end up getting only 4,000 units, we will refund the remaining 1,000 units,” Mishra said. “This makes solar energy a fixed deposit for customers because the return on investment is guaranteed.”
Thanks to recent incentives provided by the government, interest in solar energy has surged in recent years. This push is necessary as only about 1% of Indian homes are currently solar-powered, compared to countries like Australia, where 35% of homes are solar-powered, and Brazil, where more than 5% of homes are solar-powered.
“Two years ago, people only had textbook knowledge — they were taught in school that solar energy is a good thing,” Mishra said. “They didn’t know how much it cost, they didn’t know about government support, and they didn’t know that the payback period is literally 4 to 5 years.”
India has set an ambitious goal of achieving 500 gigawatts of renewable energy by 2030, and solar energy is expected to contribute about 280 gigawatts to achieving this goal. To accelerate solar adoption, the Modi government has introduced several incentives, including a $3 billion production-linked incentive plan to boost domestic solar manufacturing, a 40% basic tariff on solar modules to protect domestic industry, and feasibility gap financing for utilities to build solar power. . Infrastructure in remote areas.
The government also offers accelerated depreciation benefits, income tax credits for solar projects, and capital subsidies ranging from 20% to 70% for rooftop solar installations, while also imposing renewable purchase obligations on government utilities to ensure continued demand for solar energy. Mishra said SolarSquare helps its customers identify and leverage the benefits of government support.
“India is the first country in the world to provide net metering, this exchange of electricity, which is a consumer right that makes the economy more viable as you can trade electricity freely with the grid,” she said.
Demand for solar energy is slowly extending beyond major cities. “Unlike flash trade or companies focusing on the top 10 to 15 cities, solar is actually a national Bharat-type business,” Mishra said. “People in Tier 1, Tier 2, Tier 3 cities, as well as rural India – everywhere there are homes, people will want to go solar.”
SolarSquare will deploy the new funds to expand from 20 to 50 cities, but is taking a cautious approach. “As entrepreneurs, we’re not in the business of moving fast and breaking things,” she said. “When you make a serious product like solar, and you play with people’s lives and safety, there has to be that level of seriousness.”
For smaller cities, the startup plans to work with local partners while maintaining quality control.
The timing works in SolarSquare’s favor. India has made net metering a consumer right and reduced permit processing from months to days.
Lightspeed led the investment, a Series B funding round, with Lightrock joining, along with existing investors Elevation Capital, Chris Sacca’s Lowercarbon, and Nithin Kamath’s Rainmatter. The startup, which previously raised $19.5 million, will also invest in technology to build better systems to remotely monitor and manage residential solar installations.
“We are thrilled to partner with Solar Square, which has quickly emerged as the most trusted residential solar brand in India,” Rahul Taneja, Partner, Lightspeed, said in a statement. “The clean energy transition has moved from ESG PowerPoint decks to consumers’ homes, and Solar Square is on its way to making #hargharsolar.”
[ad_2]