SolarSquare, founded by IIT Bombay grads, is revolutionizing residential solar energy in India. With standardized installations across 16 cities in 8 states, they make solar power accessible and efficient for homes nationwide.

In late 2020, entrepreneurs Neeraj Jain and Nikhil Nahar made a bold decision that many would deem risky. Despite running a profitable Rs 100 crore bootstrapped startup since 2015, focused on solar power installations for large corporations, they chose to pivot towards the residential (B2C) solar segment—a move that raised eyebrows in the industry at the time.

To facilitate this pivot, Neeraj brought in fellow entrepreneur and IIT-Bombay graduate Shreya Mishra, who had experience running a consumer business.

“Neeraj and Nikhil were only 26 and 27 when they founded SolarSquare in 2015. That same year, I started Flyrobe, a fashion rental startup. While it was worlds apart from the solar energy space, I sold my business in 2019. The following year, my husband Neeraj persuaded me to join SolarSquare. He had a background in engineering and banking but wanted to create something with deeper purpose. Though he understood the solar market, he sought my expertise in building consumer businesses. Thats when we started exploring the residential solar segment, which is more B2C,” shares Shreya, co-founder of SolarSquare.

The pivot was challenging, as the commercial and industrial segments differ significantly from the residential sector. While SolarSquare had been setting up large-scale, customized solar power installations worth crores for Fortune 500 companies, the residential sector meant dealing with individual homeowners.

“Neeraj and Nikhil made a bold decision to venture into the residential solar market because they recognized the enormous business potential at a time when no organized company in the solar space saw it. They believed the residential segment was the future of solar energy. To fully capitalize on this opportunity, they knew they had to dedicate all their efforts to it. That decision marked a critical turning point for the company,” Shreya explains.

Standardizing Solar Installations for Quick and Scalable Residential Solutions

The residential solar segment was seen as the opportunity of the future due to the growing financial burden on average Indian households from rising electricity bills, driven by increasing tariffs and frequent extreme weather events. In many states, escalating electricity costs made it essential for consumers to seek alternative energy solutions. Rooftop solar power installations emerged as a viable solution for individual homeowners and residential societies looking to reduce their reliance on the grid and lower their energy expenses.

As Shreya explains, “For the residential segment, we focused heavily on standardizing solar installations, which enabled us to scale effectively. Imagine doing tiny, customized solar setups for each individual home—its too complex for a B2C model. So, we standardized everything and created prefabricated, ready-to-install solar kits that can be set up in just six hours. In essence, we went through a lot of learning and innovation to simplify the process for this segment.”

SolarSquares Rapid Growth

In just three and a half years, SolarSquare has become a leading residential solar brand in India, serving over 10,000 homeowners and 100+ residential societies. With operations in 16 cities across 8 states, the company has raised Rs 130 crore in funding and is set to achieve Rs 200 crore in revenues this year. While 20% of its business remains in the commercial sector, 80% now focuses on the residential market, helping the company double in size.

“Today, 80% of our business is in the residential segment, where we work with individual homes (2BHK, 3BHK) and residential societies. RWAs (Residents Welfare Associations) invest in solar power installations for common areas like lifts, water pumps, street lights, and more. Many high-rise apartments in cities like Mumbai, Pune, and Bengaluru are proud SolarSquare customers,” she adds.

Overcoming Challenges and Misconceptions in the Residential Solar Market

In January 2024, Prime Minister Narendra Modi announced that the Union Government had set a target of installing rooftop solar in one crore households in the coming months. However, when SolarSquare decided to pivot to the residential solar segment in late 2020, this significant market opportunity was not yet clear.

“As of then, even families were unaware of the benefits of solar energy. Many people confused rooftop solar installations with water heaters and didnt realize they could power their homes with solar energy. There were numerous myths and misconceptions that needed addressing, and overall awareness was still in its early stages,” explains Shreya.

Building Trust and Educating Consumers in the Solar Market

SolarSquare initial focus was on creating a strong brand built on “educational marketing and trust.” To achieve this, they published videos, content, blogs, and collaborated with influencers to raise awareness. They also released a free homeowners guide to going solar.

“Before installing anything, we make sure a homeowner understands why solar is a good option for them and which type of solar installation is suitable for their home. Our approach was to educate first, then sell. There was a lot of mis-selling in the industry. The residential solar market is fragmented and unorganized, with many local operators offering substandard products. People were sold second-hand or rejected panels without understanding how to verify the warranty or quality of the products,” explains Shreya.

“Additionally, many customers were sold solar installations without proper after-sales service. When investing in solar, the right after-sales service is crucial, as without it, the investment is wasted. We had to educate people about these critical factors,” she adds.

Convincing Investors: The Bold Bet on Residential Solar

The next major challenge for SolarSquare was convincing potential investors that their decision to enter the residential segment was a sound business move.

“When we went out to raise funds, investors thought that residential solar was a small market. Most were more focused on fintech and e-commerce. They saw residential solar as a brick-and-mortar business—where you need to visit homes, educate people, close deals, install panels, and maintain them for years. Nobody truly understood the market or its potential,” says Neeraj.

In a June 2022 interview with Forbes India, Shreya claimed that the residential solar market was a “$50 billion opportunity,” a bold estimate at the time, especially when global market research firms like Custom Market Insights had valued the entire Indian solar energy market at $38 billion in 2022.

“Looking back, I probably wildly underestimated the market. With one crore homes potentially going solar in the next three years, this market could grow by $25 billion. In a decade, it could very well become a $75 billion to $100 billion market,” Shreya asserts.

“It Is a unique time in history where you can create a consumer brand in energy. Historically, energy has always been dominated by large corporations and government-owned power plants. Now, energy is becoming personal and private, and we have the opportunity to build a consumer brand around it. Investors took time to fully grasp the potential of this market,” she adds.

How to Go Solar with SolarSquare

So, how can a homeowner in India install solar power in their home with SolarSquare? The journey begins with registering an inquiry on their website or via WhatsApp. Once a customer registers, SolarSquare arranges a free solar consultation.

“Our solar consultant, a trained expert, will visit your home, survey your roof, understand your electricity needs, and analyze your electricity bills. They will then recommend the most suitable solar solution for your home, explaining how solar power works, the various technology options available, and more. We focus on providing the right solution and addressing all customer queries before discussing any sales,” says Neeraj.

Making Solar Affordable for Indian Households

Many consumers are now aware of the long-term benefits of going solar. The initial investment of Rs 2 lakh to Rs 3 lakh to install a rooftop solar system can be recouped in three to five years, depending on electricity tariffs, after which they enjoy 20 to 22 years of free electricity. However, this upfront cost can be a challenge for many middle-class families in Indian cities.

"During our consultation, we also collect the consumers PAN card, check their loan EMI eligibility, and present EMI schemes. Customers can opt for a six-month zero-cost EMI, a 12-month EMI, or a 60-month EMI, making solar more affordable. For the 60-month EMI option, the initial down payment is covered through a subsidy provided by the Union Government," explains Shreya.

For a 2 to 3-BHK home without air conditioning, a 3-kW to 4-kW solar installation is needed. Homes with air conditioning may require a 5-kW to 6-kW system.

“The most common residential rooftop solar installation is 3-kW. A solar kit for this requirement costs around Rs 2 lakh, but with the Government subsidy of Rs 78,000 (under the PM-Surya Ghar: Muft Bijli Yojana), the consumer only needs to pay about Rs 1.2 lakh,” she adds.

Achieving Zero Investment with SolarSquare EMI and Subsidy Plans

With a 3-kW solar system, consumers can save Rs 3,000 to Rs 3,500 per month on their electricity bills. This translates to approximately Rs 36,000 to Rs 40,000 in annual savings. In just three to four years, they can recover their entire initial investment, and for the next 20 to 25 years, they can enjoy free electricity.

“For consumers opting for a five-year EMI, their net investment essentially becomes zero. The down payment is covered by the Governments subsidy, and monthly EMIs are offset by the monthly savings on electricity bills after going solar. In essence, the family does not have to arrange any substantial funds. We call this the zero-investment solar scheme, and we make sure to educate consumers about it during our consultations,” explains Neeraj.

Seamless Solar Installation with SolarSquare: From Design to Subsidy

Once a family (consumer) decides to book SolarSquares services, the startup begins by creating a detailed technical design, handling all necessary government permits, and applying for their subsidy. After the consumer approves the final design, they pay an advance, which is covered by the subsidy, and then the company delivers their ready-to-install solar kit.

“Our ready-to-install kit includes our signature Wind Pro Mount elevated structures, also known as module-mounted structures. These structures, about six feet tall, are the backbone of our installations, supporting the solar panels. They are extremely sturdy, come with a 10-year warranty, a zero-rust guarantee, and certification from IIT-Bombay, ensuring that even during a cyclone with wind speeds of up to 170 km/h, the rooftop solar system will remain intact,” explains Shreya.

“These solar installations are exposed to external weather conditions, elevated, and on top of the roof, so they need to be durable. We install our solar kits in just six to seven hours. After installation, the customer requires an inspection from their local power distribution company. Once the site is inspected, their final bank details are uploaded on the government portal, and the subsidy is transferred to their account within 30 days,” adds Nikhil.

End-to-End Solar Solutions with Comprehensive After-Sale Service

The Union Government recently launched the National Portal for Rooftop Solar, which facilitates the application process for government subsidies and permits.

“We manage all these applications for the consumer. From government permits and subsidy applications to EMI applications, inspections, design, and procurement, we offer a full-stack service that provides end-to-end solutions for the Indian consumer,” says Shreya.

After installation, the most crucial aspect is after-sale service. In India, rooftops are exposed to dust and various weather conditions, which can cause significant wear and tear on solar panels.

“We offer a five-year comprehensive solar care plan, covering everything from deep cleaning of panels to technical, mechanical, and electrical maintenance. Once the system is installed, its your roof and solar energy, but our responsibility. As part of our policy, we sell this five-year plan so consumers can continue enjoying zero-electricity bills year after year. After five years, consumers can choose to renew the after-sale care plan,” Neeraj explains.

“If you view rooftop solar systems as an investment, youll see a 20-25% internal rate of return (IRR) if it performs well. Maintenance is key to realizing that 20-25% IRR. Every month or three months, a trained SolarSquare technician visits your home, performs a complete technical check, electrical and mechanical maintenance, and deep cleans the solar panels to remove dust or bird droppings. After these checks, youll notice a spike in power production,” adds Shreya.

Looking Toward the Future: Addressing Solar Panel Waste and Sustainability

One of the biggest challenges for companies like SolarSquare in the future will be managing solar panels that have reached the end of their lives. Often, discarded panels are left scattered or mixed with domestic waste, eventually ending up in landfills.

According to a report by the International Renewable Energy Agency, large amounts of solar panel waste are expected by the early 2030s, potentially reaching 78 million tonnes by 2050. However, Shreya believes there are ways to extend the lives of these panels.

“If you maintain your rooftop solar system well, it can last up to 30-35 years. So, when a consumer retires their solar system, they can donate the panels to non-profits for a worthy cause. These panels, after being well-maintained, can still last another 10 years. They can have a second life,” she notes.

She acknowledges, however, that ventures like SolarSquare will need to develop comprehensive plans for recycling decommissioned panels. “Since were only a nine-year-old company, none of our installations have reached the end of life yet. The question of disposal and recycling is important. Thankfully, there are companies in the US already recycling up to 70% of the components and materials used to make solar panels,” she adds.

Expanding Opportunities and Tackling Sustainability

In India, researchers at the Centre for Sustainable Technologies (CST), led by Dr. Monto Mani at the Indian Institute of Science (IISc) in Bengaluru, are exploring innovative ways to upcycle discarded solar panels as building materials, potentially extending their useful life for several more decades.

As for the future of SolarSquare, things are looking bright. In December 2021, the company raised Rs 30 crore in its Seed round. Then, during its Series A round in October 2022, they raised Rs 100 crore. Notably, Lower Carbon, one of the worlds largest climate tech funds, became a shareholder in SolarSquare—marking their first investment in India. Elevation Capital, which has backed companies like Swiggy and Urban Company, is also part of SolarSquares investor group.

Further fueling optimism, a report by the Council on Energy, Environment, and Water (CEEW) in November 2023 revealed that over 25 crore households in India have the potential to deploy 637 GW of solar energy capacity on their rooftops. According to a Times of India report, even deploying one-third of this technical potential could meet the entire electricity demand of Indias residential sector (~310 TWh).

With such massive opportunities ahead, SolarSquare future looks promising as the solar energy market in India continues to grow.

Edited by Gayathri