In late 2020, entrepreneurs Neeraj Jain and Nikhil Nahar decided that might confound most entrepreneurs. Regardless of working a Rs 100 crore bootstrapped and worthwhile startup centred on establishing solar energy installations for big companies since 2015, they determined to make, what many felt on the time was, a dangerous pivot in direction of the (B2C) residential photo voltaic phase.
To assist them make that pivot, Neeraj roped in fellow entrepreneur and IIT-Bombay graduate Shreya Mishra, who had prior expertise of working a client enterprise.
“Neeraj and Nikhil had been solely 26 and 27 respectively after they based SolarSquare in 2015. In the identical 12 months, I based Flyrobe, a trend rental startup. It was very totally different from the world of photo voltaic vitality. I offered my startup in 2019, and within the following 12 months, my husband Neeraj satisfied me to hitch SolarSquare. He was an engineer with banking expertise however wished to do one thing with deep that means and goal. Whereas he had a very good grasp of the photo voltaic market, he wished my experience in constructing client companies. That’s how we began experimenting within the residential photo voltaic phase, which is extra B2C,” recollects Shreya, co-founder of SolarSquare.
This was going to be a troublesome pivot as a result of the economic phase may be very totally different. As an organization within the business and industrial phase, SolarSquare was establishing large and customised solar energy installations price a number of crores for Fortune 500 firms. That is not like the residential sector the place they’re coping with particular person owners.
“Neeraj and Nikhil took a really daring name to experiment within the residential photo voltaic phase as a result of they understood the huge enterprise alternative it provided at a time when no organised firm within the photo voltaic vitality area noticed it. They noticed that the residential photo voltaic phase appeared like the chance of the longer term. In the event that they had been to decide to this, they needed to focus all their energies on it. That was a significant inflexion level,” she provides, chatting with The Higher India.
The residential photo voltaic phase offered the chance of the longer term as a result of common Indian households had been fighting rising electrical energy payments because of growing tariffs and common incidences of maximum climate circumstances. Rising electrical energy prices in lots of states made it crucial for shoppers to discover different options. One viable answer for particular person owners and residential societies was to undertake rooftop solar energy installations.
As Shreya explains, “For the residential phase, we’ve constructed plenty of standardisation in photo voltaic installations that has allowed us to scale. Think about doing tiny photo voltaic installations which might be customised to every house! It’s too complicated a course of for a B2C operation. We standardised every thing and made prefabricated ready-to-install photo voltaic kits, which get put in in simply six hours. In different phrases, we underwent plenty of studying innovation for this phase.”
Barely three and half years later, SolarSquare has emerged as a number one residential photo voltaic model in India with a client base of greater than 10,000 particular person owners and over 100 residential societies. As Shreya claims, “A variety of serendipity led us right here. Right now, we’re operational in 16 cities unfold throughout eight states. Over two rounds of funding, now we have raised about Rs 130 crore and we’ll be doing near Rs 200 crore in revenues on this monetary 12 months.”
Despite the fact that about 20% of SolarSquare’s enterprise nonetheless lies within the business and industrial photo voltaic phase, they’ve pivoted near 80% of their enterprise in direction of the residential phase. Within the course of, they’ve additionally doubled in measurement as a enterprise — a major feat.
“Right now, 80% of our enterprise is within the residential phase the place we work with particular person properties (2BHK, 3BHK) and residential societies. RWAs purchase solar energy installations for his or her widespread areas like lifts, water pumps, road lights, and many others. Most of the high-rise flats you see in Mumbai, Pune, and Bengaluru are SolarSquare prospects,” she provides.
Overcoming doubt
In January 2024, Prime Minister Narendra Modi mentioned that the Union Authorities had set a goal of putting in rooftop photo voltaic in a single crore households over the following few months. When SolarSquare determined to pivot to the residential photo voltaic phase in late 2020, this main market alternative wasn’t obvious.
“Even households weren’t conscious of the advantages of photo voltaic. Individuals didn’t know the fundamentals. Many individuals confuse rooftop photo voltaic installations with water heaters. They didn’t know you could possibly energy your own home with photo voltaic. There have been plenty of myths and misconceptions that wanted to be addressed and consciousness ranges had been very nascent,” explains Shreya.
SolarSquare’s first mandate was to create a model on the again of “academic advertising and belief.” To that finish, they revealed movies, content material, and blogs, and labored with influencers to create consciousness. They’ve additionally revealed a free house owner’s information to going photo voltaic.
“Earlier than putting in something, we’ll assist a house owner perceive why photo voltaic is sweet for them and what sort of photo voltaic set up is sweet for his or her house. We determined that we might first educate individuals earlier than promoting them something. See, there was rampant mis-selling on this business. Residential photo voltaic is a fragmented and unorganised market involving plenty of native operators who do that as a aspect enterprise. Individuals had been offered second hand or rejected panels as a result of they didn’t know methods to authenticate guarantee or high quality of merchandise,” explains Shreya.
“Additionally, many had been offered solar energy installations with out after-sales service. In case you are shopping for photo voltaic, shopping for the proper after-sales service is essential as a result of, with out it, your funding goes down the drain. We needed to educate individuals about these items,” provides Shreya.
The subsequent greatest problem for SolarSquare was convincing potential buyers that their determination to foray into the residential phase made enterprise sense.
“Once we went out to lift funds, potential buyers thought that residential photo voltaic is a small market. Most of them had been extra engaged in fintech and e-commerce. They felt that residential photo voltaic was a really brick-and-mortar enterprise the place it’s important to go from one house to a different, educate individuals, shut an order, set up panels at their properties, and preserve them for years. No one understood this market and its potential,” says Neeraj.
Chatting with Forbes India in June 2022, Shreya claimed that residential photo voltaic was a ‘$50 billion alternative’ based mostly on her estimates. It was a really daring declare again then given how worldwide market analysis and advisory firms like Customized Market Insights estimated that your entire Indian photo voltaic vitality market was price $38 billion in 2022.
“Wanting again, I most likely wildly underestimated the market. With one crore properties doubtlessly going photo voltaic within the subsequent three years, this market will most likely see $25 billion. In a decade, this might very effectively be a $75 billion to $100 billion market,” claims Shreya.
“It’s a singular time in historical past the place you possibly can create a client model in vitality. In any other case, vitality has at all times been the sport of enormous companies and Authorities-owned energy vegetation. Power is now private and personal, and we are able to create a client model round it. Traders took plenty of time to construct their understanding of the probabilities on this market,” she provides.
Easy methods to go photo voltaic with SolarSquare?
So, how can a house owner in India set up solar energy of their properties with SolarSquare? A journey with them begins with registering an inquiry both on their web site or WhatsApp. As soon as prospects register a question, SolarSquare units up a ‘free photo voltaic session’.
“Our photo voltaic guide, a educated skilled, will go to your own home, survey your roof, perceive your electrical energy necessities, examine your electrical energy payments, and information you to the proper photo voltaic answer in your house. They will even clarify how solar energy works, what are the totally different know-how selections obtainable, and many others. We seek the advice of the client with the proper answer for his or her house, reply all their queries, and solely then comes the query of promoting something to them,” claims Neeraj.
Additionally, many shoppers perceive the advantages of going photo voltaic. No matter cash they put into putting in photo voltaic, they’ll get well their funding in three to 5 years relying on the electrical energy tariff after which get pleasure from 20 to 22 years of free electrical energy. Nonetheless, the preliminary funding of Rs 2 lakh to Rs 3 lakh to put in a rooftop photo voltaic system is commonly tough for many middle-class households in Indian cities.
“Throughout this session, we additionally take the patron’s PAN card, examine his mortgage EMI eligibility, and current the EMI schemes we are able to provide to them. Individuals can go photo voltaic on a six-month zero-cost EMI, 12-month EMI, or 60-month EMI. That makes it an reasonably priced proposition. Additionally, in case of 60-month EMI, their preliminary down fee to us will get coated by the subsidy given by the Union Authorities,” claims Shreya.
To energy a 2 to 3-BHK house that doesn’t have air conditioners, a client will want a 3-kW to 4-kW photo voltaic set up. If such properties have an air conditioner, they might require 5-kW to 6-kW.
“Probably the most generally offered residential rooftop photo voltaic set up is 3-kW. A photo voltaic package for this vitality requirement is about Rs 2 lakh, of which the Authorities covers Rs 78,000 as a subsidy (beneath the newest ‘PM-Surya Ghar: Muft Bijli Yojana’). The buyer finally ends up paying solely about Rs 1.2 lakh,” she explains.
“On this 3-kW system, shoppers find yourself saving Rs 3,000 to Rs 3,500 a month in electrical energy payments. In a 12 months, this quantities to roughly Rs 36,000 to Rs 40,000 a 12 months in electrical energy financial savings. In about three to 4 years, you possibly can get well all of your preliminary funding. Following this, this photo voltaic set up can provide you free electrical energy for the following 20 to 25 years,” she provides.
“For the patron on a five-year EMI, their internet funding comes right down to zero as a result of their down fee will get coated by the subsidy given by the Union Authorities, and month-to-month EMIs are coated by month-to-month electrical energy financial savings achieved after going photo voltaic. In internet phrases, the household doesn’t even have to rearrange any substantial sums. We name this the zero funding scheme of photo voltaic, which we educate the patron about throughout a session,” says Neeraj.
As soon as the household (client) decides to ebook their providers, the startup attracts up an in depth technical design, takes care of all their Authorities permits, and applies for his or her subsidy. After the patron has authorised the ultimate design, they pay an advance which is roofed by the subsidy, after which, the corporate delivers their ready-to-install photo voltaic package.
“Our ready-to-install package contains our trademark Wind Professional Mount elevated buildings, that are often known as module-mounted buildings. Measuring about six ft tall, these buildings are the spine of our installations holding up the panels. These buildings are very sturdy, include a 10-year guarantee, zero-rust assure, and certification from IIT-Bombay that even throughout a cyclone with wind speeds of as much as 170 kmph, nothing will occur to the rooftop photo voltaic construction,” she says.
“See, these photo voltaic installations are topic to exterior climate, elevated, and on high of a roof, and topic to excessive wind velocity strain. They must be sturdy. We set up our photo voltaic package in simply six to seven hours. As soon as put in, the client requires an inspection from their native energy discom. As soon as the positioning is inspected, their ultimate financial institution particulars are uploaded on the Authorities portal and the subsidy comes into their checking account inside simply 30 days,” notes Nikhil.
The Union Authorities not too long ago launched the Nationwide Portal for Rooftop Photo voltaic on the again of which all of those Authorities subsidies and purposes are carried out.
“We handle all these purposes for the patron. We handle Authorities permits, subsidy purposes, EMI purposes, inspections, design, procurement, and many others. We’re a full-stacked model that provides end-to-end options for the Indian client,” says Shreya.
Following set up comes a very powerful half — after-sale service. India is a rustic the place roofs are topic to plenty of mud and quite a lot of exterior climate circumstances. These parts trigger plenty of put on and tear on rooftop photo voltaic panels.
“We provide a five-year complete photo voltaic care plan by which we handle every thing from panel deep cleansing to technical, mechanical, and electrical upkeep. As soon as put in, it’s your roof and photo voltaic vitality however our accountability. As a coverage, we promote a five-year complete photo voltaic care plan so that customers can get pleasure from the advantages of zero-electricity payments 12 months after 12 months. Customers can renew their after-sale care plan with us after these 5 years,” notes Neeraj.
“When you take a look at rooftop photo voltaic programs as an funding, you’re seeing 20-25% IRR (inside price of return) if it offers you the proper efficiency. Upkeep is necessary as a result of that’s the way you realise that 20-25% IRR. Each month or three months, a educated SolarSquare technician will come to your own home, do a whole technical examine, electrical upkeep, and mechanical examine, and do a deep cleansing of the photo voltaic panels to make sure any onerous mud or hen droppings are eliminated. Following this examine, you will note a spike in energy manufacturing,” claims Shreya.
Seeking to the longer term
One of many greatest challenges transferring ahead for firms like SolarSquare will likely be managing photo voltaic panels that attain the tip of their lives. These discarded panels are sometimes left strewn round or ultimately get blended up with home stable waste and find yourself in landfills.
In response to a report by the Worldwide Renewable Power Company, “giant quantities of annual (photo voltaic panel) waste are anticipated by the early 2030s” and will contact 78 million tonnes by 2050. Shreya, nevertheless, believes there are methods to increase the lives of those used panels.
“When you preserve your rooftop photo voltaic set up effectively, it might last as long as 30-35 years. So, as soon as a client retires their photo voltaic rooftop system, they will donate the panels to non-profits working for a worthy trigger. These panels can run for one more 10 years as a result of they’ve been maintained so effectively. These photo voltaic panels can have a second-hand life too,” she notes.
However she does admit that ventures like SolarSquare should devise complete plans to recycle decommissioned panels. “Since we’re solely a nine-year-old firm, we don’t have any photo voltaic installations which have reached the tip of life. The query of disposal and recycling is necessary. Fortunately, you have already got firms within the US that may recycle 70% of the parts and supplies used to make photo voltaic panels,” she says.
In India, in the meantime, a staff of researchers on the Centre for Sustainable Applied sciences (CST), led by Dr Monto Mani and working out of the Indian Institute of Science (IISc) in Bengaluru, is exploring whether or not outdated discarded photo voltaic panels could be upcycled as a constructing materials. With this, they need to prolong the panels’ helpful life by a number of many years.
Nonetheless, when it comes to their future as a enterprise, issues look good.
In December 2021, they raised Rs 30 crore of their Seed spherical. Throughout their Collection A spherical in October 2022, they raised Rs 100 crore. “Decrease Carbon, one of many world’s largest local weather tech funds, is our shareholder. It was their first funding in India. We even have Elevation Capital, who’re buyers in Swiggy and City Firm, and different notable buyers on board,” she says.
Furthermore, based on a November 2023 report by the Council on Power, Atmosphere and Water (CEEW), greater than 25 crore households in India have the potential to deploy 637 GW of photo voltaic vitality capability on rooftops. In response to a Instances of India report on the identical, “Additional, the CEEW report discovered that deploying simply one-third of this complete photo voltaic technical potential may help your entire electrical energy demand of India’s residential sector (~310 TWh).”
For ventures like SolarSquare, the alternatives are large and the longer term appears to be like promising.
(Edited by Pranita Bhat; Pictures courtesy SolarSquare)
Sources
House owner’s Information to Shopping for Rooftop Photo voltaic by SolarSquare
‘SolarSquare’s co-founders on the $50 billion alternative to convey solar energy to Indian properties’ by Harichandran Arakali; Revealed on 14 June 2022 courtesy Forbes India
‘India Photo voltaic Power Market 2023–2032’; Revealed in Could 2023 courtesy Customized Market Insights
‘India has 637 GW of residential rooftop photo voltaic vitality potential: CEEW report’ by Hemali Chhapia; Revealed on 17 November 2023 courtesy Instances of India
