SolarSquare Secures $40 Million to Expand Residential Solar in India
Investment and Growth
SolarSquare, India's largest distributed solar asset operator, has raised $40 million in a Series B funding round led by Lightspeed and Lightrock. Existing investors Elevation Capital, Lowercarbon, and Rainmatter also participated. This marks the largest venture round in India's solar sector. The company, which previously raised $19.5 million, plans to use the funds to expand its services from 20 to 50 cities across India.
Focus on Residential Solar
Founded in Mumbai, SolarSquare initially focused on corporate clients before shifting to the residential market in 2021. The company now powers over 20,000 homes and 200 housing societies. SolarSquare offers a full-stack service, including design, sales, installation, permit facilitation, financing, and after-sales support. The average system cost is around $1,500.
Guaranteed Returns and Customer Focus
SolarSquare differentiates itself by guaranteeing returns on solar investments and compensating customers if systems underperform. This guarantee, along with government incentives, makes solar a more attractive investment for homeowners. The company also assists customers in navigating government subsidy programs. For more information on government incentives for green energy, see Amogy Raises $11.2M for Green Ammonia Power.
India's Solar Potential
India aims to achieve 500 gigawatts of renewable energy capacity by 2030, with solar contributing 280 gigawatts. While solar adoption is growing, only about 1% of Indian homes currently utilize solar energy. This contrasts with countries like Australia (35%) and Brazil (5%). Government initiatives, including subsidies and net-metering policies, are driving increased interest in solar. You can learn more about Xiaomi's open-source IoT platform, which could contribute to this growth, at Xiaomi Open-Sources Vela IoT Platform for Global Collaboration.
Expansion Strategy
SolarSquare's expansion will focus on strategic partnerships in smaller cities while maintaining quality control. The company emphasizes a cautious approach, prioritizing safety and reliability. The simplified permit process and net-metering rights further support the company's growth. For insights into another company expanding its reach, see Anybotics Raises $60M to Expand Industrial Inspection Robot.
Future Outlook
With the new funding, SolarSquare will also invest in technology for remote monitoring and management of residential solar installations. The company is well-positioned to capitalize on the growing demand for residential solar in India.