SolarSquare Secures $40 Million in Record-Breaking Solar Venture

SolarSquare, a Mumbai-based solar startup, has raised $40 million in a round led by Lightspeed, marking the largest venture investment in India's solar sector. Initially a bootstrapped firm focusing on corporate clients, SolarSquare pivoted to residential solar in 2021 and has since become the nation’s largest distributed solar operator, with installations across over 20,000 homes. The company offers a unique full-stack service guaranteeing returns on solar investments and compensating customers if promised performance levels are not met. This investment, which includes participation from Lightrock and existing backers Elevation Capital and others, will fuel SolarSquare’s expansion into 50 cities, from the current 20, while continuing to prioritize safety and quality. The surge in interest for solar energy is partly fueled by Indian government incentives, such as depreciation benefits, tax holidays, and capital subsidies. SolarSquare plans to harness these incentives, helping its customers access government benefits, amid India’s ambitious renewable energy targets.