SolarSquare is negotiating to raise up to $60 million in a financing round that could value the Indian rooftop solar installer at $500 million, according to people familiar with the matter.
The Mumbai-based company expects to close the round next month. Terms remain under discussion and could still change.
The fundraising comes as venture capital firms increase their bets on India’s residential solar sector. Government subsidies and rising electricity costs have accelerated rooftop installation demand across Indian cities in the past 18 months.
SolarSquare installs residential and commercial solar systems across major Indian metropolitan areas. The company declined to comment on the funding discussions.
Market expansion
India’s rooftop solar capacity reached 11.87 gigawatts as of March 2025, according to India's Ministry of New and Renewable Energy. That figure represents a 42% increase from the previous year.
The government targets 40 gigawatts of rooftop solar capacity by 2026 under its national renewable energy plan. New Delhi introduced enhanced subsidies in 2024 that cover up to 40% of installation costs for residential systems under 3 kilowatts.
Several rooftop solar installers have attracted significant venture funding in recent quarters. Rival firm Zypp Electric raised $25 million in March, while SunPedal secured $18 million in January.
Energy costs in Indian cities have climbed an average of 8% annually since 2022, according to Central Electricity Authority of India data. That trend has made solar installations economically viable for middle-class households in major urban centers.
Company background
SolarSquare was founded in 2015 by Shreya Mishra and Neeraj Jain. The company operates in Mumbai, Delhi, Bangalore, and six other Indian cities.
The firm has installed more than 15,000 residential solar systems since its founding. It also serves commercial clients including retail chains and small manufacturing facilities.
Earlier investors in SolarSquare include venture firms Elevation Capital and Accel India. The company raised $22 million in its Series B round in 2024.
SolarSquare competes with established players including Tata Power Solar and Waaree Energies, both of which have expanded residential installation services. Newer entrants like Fourth Partner Energy and CleanMax have also entered the distributed solar market.
The company employs approximately 450 people across its installation and sales teams. It sources solar panels from domestic manufacturers including Adani Solar and international suppliers.
India ranked third globally in solar capacity additions in 2024, according to International Energy Agency figures. The country added 17.5 gigawatts of total solar capacity that year, behind only China and the United States.
Rooftop installations accounted for roughly 18% of India’s total solar additions in 2024. That share has grown from 12% in 2022 as residential adoption accelerates.
