SolarSquare has raised $50–55 million (around ₹458 crore) in its Series C funding round, taking the company’s valuation to about $470 million. The fresh funding will help the rooftop solar company expand to more cities, improve its technology, and strengthen its position in India’s fast-growing residential solar market.
The funding round was led by US-based investment firm B Capital. Existing investors also participated, including Lightspeed Venture Partners, Elevation Capital, Lowercarbon Capital, Rainmatter by Zerodha, and Good Capital. With this latest investment, SolarSquare has now raised more than $100 million since it was founded in 2015.
The company was started by Shreya Mishra, Neeraj Jain, and Nikhil Nahar. Even after this funding round, the three founders together still own 27.5% of the company. The legal work for the deal was handled by Shardul Amarchand Mangaldas, led by Partner Manish Gupta.
Fresh Funding to Support Expansion and New Technology
The latest funding has increased SolarSquare’s valuation to between $450 million and $500 million, which is nearly 2.5 times higher than its previous valuation around one and a half years ago. This shows that investors are confident about the future of India’s rooftop solar market.
The company plans to use the money to expand into 30 to 40 new Tier 2 and Tier 3 cities by FY26. At present, SolarSquare operates in 29 cities across India.
Apart from entering new markets, the company will invest in improving its technology, hiring more employees, and expanding its home energy solutions, including battery storage systems. These systems allow homeowners to store solar power and use it when needed.
Another important reason behind raising this funding is to prepare for the government’s Domestic Content Requirement (DCR) rule. From June 1, 2026, only solar panels made in India can be used in subsidised residential rooftop solar projects. Industry experts believe this rule could increase the cost of solar components by 30% to 50% for some time because domestic supply may remain limited.
With fresh funds in hand, SolarSquare hopes to secure enough Indian-made solar panels and other equipment in advance. This could help the company continue its projects without major delays while giving it an advantage over smaller competitors.
Revenue Nearly Doubles as Business Improves
SolarSquare’s financial performance has improved significantly over the last two years.
In FY24, the company reported ₹175 crore in operating revenue, a 63.5% increase compared to the previous year. However, its losses also increased sharply to ₹69 crore, mainly because the company spent more on expansion.
Its total expenses rose to ₹229 crore, up nearly 66% from the previous year. Material costs increased to ₹134 crore, employee expenses crossed ₹37 crore, while finance and rental costs stood at about ₹8 crore. At the same time, income from services fell by 33% to ₹2 crore.
The situation improved in FY25. The company’s operating revenue almost doubled to ₹355 crore, while its losses came down as sales increased and operations became more efficient.
SolarSquare now says it is running at an annual revenue rate of around ₹800 crore to ₹1,000 crore, showing strong demand for rooftop solar systems across the country.
Government Support Continues to Drive Demand
SolarSquare’s growth has been supported by the government’s PM Surya Ghar Muft Bijli Yojana, which offers subsidies of up to ₹78,000 for eligible residential rooftop solar installations.
According to the company, the scheme has made it easier for people to finance rooftop solar systems and has helped increase adoption by around 250%.
The company has now installed more than 250 MW of solar capacity across India. This includes 100 MW from residential projects covering more than 25,000 homes and 240 housing societies. The remaining 150 MW comes from commercial and industrial projects, including factories and warehouses.
To make rooftop solar more affordable, SolarSquare had earlier raised ₹100 crore to set up a Non-Banking Financial Company (NBFC) that offers financing options to customers. The company has also partnered with renewable energy company Sungrow to deliver a 25 MW rooftop solar solution across India.
Even though the market is growing, some challenges remain. Many solar vendors have reported delays in receiving government subsidies. Some customers also face loan rejections because of missing documents. Discussions on online platforms show mixed customer experiences, with some users advising buyers to check whether the company has a local office in their city before making a decision.
Despite these challenges, SolarSquare’s latest funding, better financial performance, and expansion plans show that the company is preparing for the next phase of growth as demand for rooftop solar continues to increase across India.