Mumbai-based rooftop solar company SolarSquare has raised $53 million (around ₹500 crore) in a Series C funding round led by B Capital, with participation from Lightspeed Venture Partners and several existing investors. The latest investment has pushed the company’s valuation to around $450 million to $500 million, making it one of the most valuable startups in India’s residential solar sector.
The funding comes at a time when rooftop solar adoption is growing rapidly across India. Rising electricity bills, government incentives, and increasing awareness about clean energy are encouraging more homeowners to switch to solar power.
SolarSquare Plans Bigger Expansion Across India
Founded in 2015 by Neeraj Jain, Nikhil Nahar, and Shreya Mishra, SolarSquare started as a broader solar company before focusing entirely on residential rooftop solar in 2021. Since then, the company has expanded quickly and claims to have installed solar systems in nearly 50,000 homes across more than 20 cities.
The company is currently operating at an annual revenue run rate of over ₹1,000 crore. In FY25, it reported operating revenue of around ₹340-355 crore, reflecting strong growth in its business.
With the fresh funding, SolarSquare plans to expand into 30 to 40 new cities, especially in Tier 2 and Tier 3 markets. The company sees strong demand in states such as Uttar Pradesh, Rajasthan, Gujarat, Madhya Pradesh, and Maharashtra, where more households are showing interest in rooftop solar systems.
SolarSquare is also exploring opportunities outside India and has set a target of becoming profitable by FY27. The company says its focus will now be on improving efficiency and building a sustainable business rather than just chasing growth.
As part of the funding deal, Karan Mohla, General Partner at B Capital, will join the company’s board, adding strategic support as the startup enters its next phase of expansion.
Full-Service Solar Model Helps the Company Stand Out
One reason behind SolarSquare’s growth is its full-service business model. The company manages almost every step of the solar installation process, including site surveys, system design, installation, financing, subsidy applications, and after-sales service.
To make rooftop solar affordable, SolarSquare offers financing options that require little or no upfront payment. The company says the monthly loan EMI is often designed to be similar to a household’s electricity bill, making the switch to solar easier for customers.
The startup has also invested in technology. It uses specially designed mounting structures for faster installations and operates a monitoring platform that helps track system performance and identify maintenance needs before they become major problems.
Most of SolarSquare’s revenue comes from selling and installing rooftop solar systems. A smaller portion comes from annual maintenance contracts, which provide regular support and recurring income for the company.
Industry experts believe this end-to-end approach gives SolarSquare an advantage over many smaller local installers.
Industry Challenges and Customer Complaints Remain a Concern
While the funding round is a major milestone, SolarSquare is operating in a challenging environment. A new government rule that came into effect on June 1, 2026, requires subsidized rooftop solar projects to use solar modules and cells made entirely in India under the Domestic Content Requirement (DCR) policy.
The policy aims to strengthen domestic manufacturing, but it has also created supply shortages because India’s production capacity is still lower than market demand. As a result, prices of DCR-compliant solar modules have increased significantly, making installations more expensive for customers.
Many industry observers believe SolarSquare’s strong cash position after the latest funding will help it secure supplies more easily than smaller regional competitors, which may struggle with rising costs and limited inventory.
At the same time, the company has faced criticism from some customers regarding project delays and customer service. Several online reviews mention slow communication after payments are made, delayed installations, and disputes over advance payments.
Some customers claim they were left waiting for months for their systems to become operational, while others have raised concerns about refund policies when projects could not move forward as planned.
In response, SolarSquare has said that many delays are linked to approval processes, net-metering procedures, and implementation challenges under the PM Surya Ghar Yojana. According to the company, different state electricity distribution companies are moving at different speeds, creating delays that are often beyond the installer’s control.
As India’s rooftop solar market continues to expand, SolarSquare now has the funding needed to grow aggressively. However, the company’s future success will depend not only on expanding into new cities but also on improving customer experience and maintaining trust as competition in the sector increases.