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In late 2020, entrepreneurs Neeraj Jain and Nikhil Nahar decided that might confound most entrepreneurs. Regardless of operating a Rs 100 crore bootstrapped and worthwhile startup centred on organising solar energy installations for big companies since 2015, they determined to make, what many felt on the time was, a dangerous pivot in the direction of the (B2C) residential photo voltaic section.
To assist them make that pivot, Neeraj roped in fellow entrepreneur and IIT-Bombay graduate Shreya Mishra, who had prior expertise of operating 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 style rental startup. It was very totally different from the world of photo voltaic vitality. I bought my startup in 2019, and within the following 12 months, my husband Neeraj satisfied me to affix SolarSquare. He was an engineer with banking expertise however needed to do one thing with deep which means and goal. Whereas he had grasp of the photo voltaic market, he needed my experience in constructing client companies. That’s how we began experimenting within the residential photo voltaic section, which is extra B2C,” recollects Shreya, co-founder of SolarSquare.
This was going to be a tricky pivot as a result of the commercial section may be very totally different. As an organization within the business and industrial section, SolarSquare was organising huge and customised solar energy installations price just a few crores for Fortune 500 corporations. That is in contrast to 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 section as a result of they understood the large enterprise alternative it supplied at a time when no organised firm within the photo voltaic vitality house noticed it. They noticed that the residential photo voltaic section regarded 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 serious inflexion level,” she provides, talking to The Higher India.
The residential photo voltaic section 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 situations. Rising electrical energy prices in lots of states made it crucial for customers to discover various options. One viable resolution for particular person owners and residential societies was to undertake rooftop solar energy installations.
As Shreya explains, “For the residential section, we’ve constructed plenty of standardisation in photo voltaic installations that has allowed us to scale. Think about doing tiny photo voltaic installations which can be customised to every residence! It’s too advanced a course of for a B2C operation. We standardised the whole lot 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 section.”
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, “Plenty of serendipity led us right here. Right this moment, we’re operational in 16 cities unfold throughout eight states. Over two rounds of funding, we’ve got raised about Rs 130 crore and we’ll be doing near Rs 200 crore in revenues on this monetary 12 months.”
Although about 20% of SolarSquare’s enterprise nonetheless lies within the business and industrial photo voltaic section, they’ve pivoted near 80% of their enterprise in the direction of the residential section. Within the course of, they’ve additionally doubled in measurement as a enterprise — a major feat.
“Right this moment, 80% of our enterprise is within the residential section the place we work with particular person properties (2BHK, 3BHK) and residential societies. RWAs purchase solar energy installations for his or her frequent areas like lifts, water pumps, road lights, and so forth. Most of the high-rise flats you see in Mumbai, Pune, and Bengaluru are SolarSquare clients,” 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 section in late 2020, this main market alternative wasn’t obvious.
“Even households weren’t conscious of the advantages of photo voltaic. Folks didn’t know the fundamentals. Many individuals confuse rooftop photo voltaic installations with water heaters. They didn’t know you might 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 marketing and belief.” To that finish, they printed movies, content material, and blogs, and labored with influencers to create consciousness. They’ve additionally printed a free home-owner’s information to going photo voltaic.
“Earlier than putting in something, we’ll assist a home-owner perceive why photo voltaic is nice for them and what sort of photo voltaic set up is nice for his or her residence. We determined that we’d 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 facet enterprise. Folks had been bought 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 bought solar energy installations with out after-sales service. If you’re shopping for photo voltaic, shopping for the best after-sales service is essential as a result of, with out it, your funding goes down the drain. We needed to educate individuals about this stuff,” provides Shreya.
The following largest problem for SolarSquare was convincing potential traders that their resolution to foray into the residential section made enterprise sense.
“After we went out to boost funds, potential traders 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 residence to a different, educate individuals, shut an order, set up panels at their properties, and keep them for years. No person 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 corporations like Customized Market Insights estimated that your complete 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 crops. Power is now private and personal, and we will create a client model round it. Traders took plenty of time to construct their understanding of the probabilities on this market,” she provides.
go photo voltaic with SolarSquare?
So, how can a home-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 clients register a question, SolarSquare units up a ‘free photo voltaic session’.
“Our photo voltaic marketing consultant, a skilled skilled, will go to your own home, survey your roof, perceive your electrical energy necessities, research your electrical energy payments, and information you to the best photo voltaic resolution in your residence. They may even clarify how solar energy works, what are the totally different expertise selections obtainable, and so forth. We seek the advice of the client with the best resolution for his or her residence, reply all their queries, and solely then comes the query of promoting something to them,” claims Neeraj.
Additionally, many customers perceive the advantages of going photo voltaic. No matter cash they put into putting in photo voltaic, they’ll get better their funding in three to 5 years relying on the electrical energy tariff after which take pleasure in 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 usually tough for many middle-class households in Indian cities.
“Throughout this session, we additionally take the buyer’s PAN card, verify his mortgage EMI eligibility, and current the EMI schemes we will supply to them. Folks can go photo voltaic on a six-month zero-cost EMI, 12-month EMI, or 60-month EMI. That makes it an inexpensive proposition. Additionally, in case of 60-month EMI, their preliminary down cost to us will get lined by means of the subsidy given by the Union Authorities,” claims Shreya.
To energy a 2 to 3-BHK residence 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 could require 5-kW to 6-kW.
“Essentially the most generally bought residential rooftop photo voltaic set up is 3-kW. A photo voltaic equipment for this vitality requirement is about Rs 2 lakh, of which the Authorities covers Rs 78,000 as a subsidy (below the most recent ‘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, customers 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 better all of your preliminary funding. Following this, this photo voltaic set up may give you free electrical energy for the following 20 to 25 years,” she provides.
“For the buyer on a five-year EMI, their internet funding comes right down to zero as a result of their down cost will get lined by the subsidy given by the Union Authorities, and month-to-month EMIs are lined by means of 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 buyer about throughout a session,” says Neeraj.
As soon as the household (client) decides to e-book their companies, 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 buyer has accepted the ultimate design, they pay an advance which is roofed by the subsidy, after which, the corporate delivers their ready-to-install photo voltaic equipment.
“Our ready-to-install equipment 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 stress. They must be sturdy. We set up our photo voltaic equipment 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 remaining 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 just lately launched the Nationwide Portal for Rooftop Photo voltaic on the again of which all of those Authorities subsidies and purposes are performed.
“We handle all these purposes for the buyer. We handle Authorities permits, subsidy purposes, EMI purposes, inspections, design, procurement, and so forth. We’re a full-stacked model that provides end-to-end options for the Indian client,” says Shreya.
Following set up comes an important half — after-sale service. India is a rustic the place roofs are topic to plenty of mud and quite a lot of exterior climate situations. These parts trigger plenty of put on and tear on rooftop photo voltaic panels.
“We provide a five-year complete photo voltaic care plan wherein we handle the whole lot 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 duty. As a coverage, we promote a five-year complete photo voltaic care plan so that customers can take pleasure in the advantages of zero-electricity payments 12 months after 12 months. Shoppers can renew their after-sale care plan with us after these 5 years,” notes Neeraj.
“In case you take a look at rooftop photo voltaic programs as an funding, you’re seeing 20-25% IRR (inner charge of return) if it provides you the best efficiency. Upkeep is vital as a result of that’s the way you realise that 20-25% IRR. Each month or three months, a skilled SolarSquare technician will come to your own home, do a whole technical verify, electrical upkeep, and mechanical verify, and do a deep cleansing of the photo voltaic panels to make sure any laborious mud or chicken droppings are eliminated. Following this verify, you will note a spike in energy manufacturing,” claims Shreya.
Trying to the longer term
One of many largest challenges transferring ahead for corporations like SolarSquare will probably 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 strong waste and find yourself in landfills.
In accordance with a report by the Worldwide Renewable Power Company, “massive quantities of annual (photo voltaic panel) waste are anticipated by the early 2030s” and will contact 78 million tonnes by 2050. Shreya, nonetheless, believes there are methods to increase the lives of those used panels.
“In case you keep your rooftop photo voltaic set up effectively, it will probably 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 an additional 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 must 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 vital. Fortunately, you have already got corporations within the US that may recycle 70% of the elements and supplies used to make photo voltaic panels,” she says.
In India, in the meantime, a crew 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 previous discarded photo voltaic panels may be upcycled as a constructing materials. With this, they want to prolong the panels’ helpful life by just a few many years.
Nonetheless, by way of their future as a enterprise, issues look good.
In December 2021, they raised Rs 30 crore of their Seed spherical. Throughout their Sequence 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 traders in Swiggy and City Firm, and different notable traders on board,” she says.
Furthermore, in accordance with 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 accordance with a Occasions of India report on the identical, “Additional, the CEEW report discovered that deploying simply one-third of this complete photo voltaic technical potential may assist your complete electrical energy demand of India’s residential sector (~310 TWh).”
For ventures like SolarSquare, the alternatives are huge and the longer term seems promising.
(Edited by Pranita Bhat; Photographs courtesy SolarSquare)
Sources
Home-owner’s Information to Shopping for Rooftop Photo voltaic by SolarSquare
‘SolarSquare’s co-founders on the $50 billion alternative to deliver 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 Might 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 Occasions of India
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