We passed when we first met Solar Square during their seed and Series A rounds. Not because we didn’t believe in the potential of solar energy but because we felt that the market was not there yet. While solar energy has heralded the promise of a green energy revolution for a sunshine-abundant country like India for a long time, the home residential solar market had lagged. Of India’s 12GW of rooftop solar, <20% was home installed, way behind the targets of 40 GW, which itself is minuscule compared to India’s solar potential of 748 GW. A combination of regulatory complexity, uneven state-led subsidy model, and high panel prices created challenges to adoption.
All of this changed in 2024. In a “UPI moment” for Solar – the launch of the revamped National Solar Portal along with a nationwide government scheme for rooftop solar adoption gave a massive boost to the sector. This single-window clearance portal today streamlines all the regulatory approvals in one place and provides transparent access to your rooftop solar application. The result is that hitherto, permission and subsidies for solar panels would take months, but now, it takes a few weeks. The shift is palpable, almost electric. The market has responded; early estimates suggest the sector has grown 85% YoY. As heavy electric appliances penetrate more Indian households (remember the electricity bill shock your family had when you first installed an AC!) and tariffs keep rising secularly, home solar adoption will only grow. Given this perfect confluence of factors, India has a real shot at being the single largest home solar market globally. A market on a tear also needed a maverick, best-in-class team to make this revolution real; luckily, we knew one such team.
Solar Square has had an interesting journey. We had known Shreya for over a decade, since her days as a founder of her previous venture. In 2020, she joined Neeraj and Nilkhil, who had been running Solar Square as a commercial-focused solar installer for over five years. Seeing early signs of a potentially inflecting market, the team pivoted the company to serve households.
We remember Neeraj not turning up for the first meeting this time. “They will likely pass again; I would rather build the business :)” We anyway have a soft spot for founders who do not bother with pretensions. However, what made the meeting stand out was the resilience of this team and how much they had innovated in a category where it is assumed (incorrectly) that the lowest price will win. Take, for instance, the ‘GoodZero’ product – a global first where a solar company has promised a refund if the savings on the electricity bill for a household do not meet what was promised. In an ops-heavy business, this is a non-trivial proposition, for it requires ensuring quality installation every single time and real-time panel performance tracking to solve issues proactively. Their world-class execution shows itself in near-zero claims. It also shows up in market leadership – Solar Square consistently ranks #1 across almost all micro markets it operates in and is spoken of with reverence by its competitors (unprompted in most of our calls).
This has propelled them to be India’s largest home solar-focused brand, but this is just the start. It is no surprise because, in our view, this is among the most consumer-focused and obsessed teams we have met. Shreya, with her fire, consumer-first thinking; Neeraj, with his missionary zeal for solar (we are told he only wears Solar Square t-shirts at all times) and deep ops experience; Nikhil’s focus towards quality and process excellence are people with the right combination to build an enduring home solar brand for a billion Indians.
Partnering with founders who dare to change the world makes us love our work every day, and it is a privilege to back Shreya, Neeraj, Nikhil, and the team at Solar Square. This fundraise will give ammunition to the company to expand its operations, further cement its brand, and bolster the team. While certainly a milestone, knowing the team, this is a small one for them. They will not rest till their dream of empowering every Indian household with Solar and building India’s dominant energy brand is achieved. We are thrilled to be partnering on this journey.
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