SolarSquare secures largest funding in photo voltaic sector in India

SolarSquare has raised $40 million in a funding spherical led by Lightspeed in what’s the largest funding spherical within the Indian photo voltaic sector.

The Mumbai-based startup was bootstrapped and promoting profitably to enterprise prospects for 5 years prior. Switch to Residential Solar Energy in 2021. Immediately, it now powers over 20,000 properties and 200 housing societies throughout India, and is India’s largest operator of distributed photo voltaic property.

“That is the chance of a lifetime,” Shreya Mishra, co-founder and managing director of SolarSquarestated TechCrunch in an interview. “It’s not only a super-fast rising trade: it’s the place revenue and objective align. »

In contrast to different gamers within the sector, SolarSquare ensures the return on funding of photo voltaic power and compensates prospects if the programs don’t work, by providing an entire service: design and sale of programs, set up on the buyer’s roof, acquiring permits, financing and providing after-sales companies – rather more convincing. The general value of buying and putting in the system averages about $1,500.

“If we promise that you’re going to get 5,000 models of electrical energy from solar energy however you find yourself getting solely 4,000 models, we are going to refund the remaining 1,000 models,” Mishra stated. “This makes photo voltaic power a hard and fast deposit for patrons, because the return on funding is assured. »

Because of current incentives offered by the federal government, curiosity in photo voltaic power has elevated in recent times. The push is critical as a result of solely about 1% of Indian households have at present adopted photo voltaic power, in comparison with international locations like Australia, the place 35% of households have photo voltaic, and Brazil, the place greater than 5 % of properties are outfitted with photo voltaic power.

“Two years in the past, individuals solely had theoretical data – they realized in class that photo voltaic power is an effective factor,” Mishra stated. “They did not understand how a lot it value, they did not learn about authorities subsidies, they did not know that the payback interval was actually 4 to five years. »

India has set an formidable goal of reaching 500 gigawatts of renewable power capability by 2030, with solar energy anticipated to contribute round 280 gigawatts to this goal. To speed up the adoption of photo voltaic power, the Modi authorities launched a number of incentives, together with a production-linked incentive program value $3 billion to spice up home photo voltaic manufacturing, customs duties base of 40% on photo voltaic modules to guard native trade and viability hole funding for utilities wishing to construct photo voltaic installations. infrastructure in distant areas.

The federal government can also be providing accelerated depreciation advantages, revenue tax exemptions for photo voltaic initiatives and capital subsidies starting from 20% to 70% for rooftop photo voltaic installations, whereas additionally imposing renewable power buying obligations to state utilities to make sure constant demand for photo voltaic power. SolarSquare helps its prospects establish and avail the advantages of presidency subsidies, Mishra stated.

“India is the primary nation on the earth to make internet metering, this alternate of electrical energy, a shopper proper which makes the economic system extra viable as a result of you possibly can freely alternate electrical energy with the grid,” a- she declared.

The demand for photo voltaic power is slowly increasing effectively past main cities. “In contrast to quick buying and selling or firms that concentrate on the 10-15 largest cities, solar energy is definitely a nationwide Bharat-type enterprise,” Mishra stated. “Individuals in tier 1, tier 2, tier 3 cities in addition to rural areas of India – wherever there are properties, individuals will need to go photo voltaic.”

SolarSquare will deploy the brand new funds to broaden from 20 to 50 cities, however is taking a cautious method. “As entrepreneurs, our job is to not ‘transfer quick and break issues,’” she stated. “If you develop a severe product like photo voltaic power, enjoying with individuals’s lives and security, there must be that diploma of seriousness.”

For smaller cities, the startup plans to work with native companions whereas sustaining high quality management.

Timing works in SolarSquare’s favor. India made internet metering a shopper proper and diminished allow processing from months to days.

Lightspeed led the funding, a Sequence B funding spherical, with Lightrock becoming a member of, alongside present traders Elevation Capital, Chris Sacca’s Lowercarbon and Nithin Kamath’s Rainmatter. The startup, which beforehand raised $19.5 million, can even put money into know-how to construct higher distant monitoring and administration programs for residential photo voltaic installations.

“We’re excited to accomplice with Photo voltaic Sq., which has shortly grow to be probably the most trusted residential photo voltaic model in India,” Lightspeed accomplice Rahul Taneja stated in an announcement. “The clear power transition has moved from ESG PowerPoint displays to shoppers’ properties and Photo voltaic Sq. is effectively on its strategy to changing into #hargharsolar.”

The take care of SolarSquare is Lightspeed’s newest in India, the place the corporate has invested in 20 startups – together with putting massive checks in startups akin to Zepto, Physics Wallah and Pocket FM – in 2024.