In past due 2020, marketers Neeraj Jain and Nikhil Nahar decided that may confound maximum marketers. Regardless of working a Rs 100 crore bootstrapped and successful startup centred on putting in solar energy installations for enormous companies since 2015, they determined to make, what many felt on the time was once, a dangerous pivot in opposition to the (B2C) residential sun phase.
To lend a hand them make that pivot, Neeraj roped in fellow entrepreneur and IIT-Bombay graduate Shreya Mishra, who had prior revel in of working a client industry.
“Neeraj and Nikhil have been best 26 and 27 respectively once they based SolarSquare in 2015. In the similar yr, I based Flyrobe, a way condominium startup. It was once very other from the sector of solar power. I offered my startup in 2019, and within the following yr, my husband Neeraj satisfied me to enroll in SolarSquare. He was once an engineer with banking revel in however sought after to do one thing with deep that means and objective. Whilst he had a excellent clutch of the sun marketplace, he sought after my experience in development shopper companies. That’s how we began experimenting within the residential sun phase, which is extra B2C,” remembers Shreya, co-founder of SolarSquare.
This was once going to be a tricky pivot for the reason that commercial phase could be very other. As an organization within the business and commercial phase, SolarSquare was once putting in huge and customized solar energy installations price a couple of crores for Fortune 500 firms. That is in contrast to the residential sector the place they’re coping with particular person house owners.
“Neeraj and Nikhil took an excessively daring name to experiment within the residential sun phase as a result of they understood the huge industry alternative it presented at a time when no organised corporate within the solar power area noticed it. They noticed that the residential sun phase appeared like the potential for the long run. In the event that they have been to decide to this, they needed to focal point all their energies on it. That was once a significant inflexion level,” she provides, chatting with The Higher India.
The residential sun phase offered the potential for the long run as a result of reasonable Indian families have been suffering with emerging electrical energy expenses due to expanding price lists and common incidences of utmost climate stipulations. Emerging electrical energy prices in lots of states made it crucial for shoppers to discover selection answers. One viable resolution for particular person house owners and home societies was once to undertake rooftop solar energy installations.
As Shreya explains, “For the residential phase, we’ve constructed a large number of standardisation in sun installations that has allowed us to scale. Believe doing tiny sun installations which can be customised to each and every house! It’s too complicated a procedure for a B2C operation. We standardised the whole lot and made prefabricated ready-to-install sun kits, which get put in in simply six hours. In different phrases, we underwent a large number of finding out innovation for this phase.”
Slightly 3 and part years later, SolarSquare has emerged as a number one residential sun emblem in India with a client base of greater than 10,000 particular person house owners and over 100 residential societies. As Shreya claims, “Numerous serendipity led us right here. As of late, we’re operational in 16 towns unfold throughout 8 states. Over two rounds of investment, we’ve raised about Rs 130 crore and we’ll be doing on the subject of Rs 200 crore in revenues on this monetary yr.”
Despite the fact that about 20% of SolarSquare’s industry nonetheless lies within the business and commercial sun phase, they’ve pivoted on the subject of 80% in their industry in opposition to the residential phase. Within the procedure, they have got additionally doubled in dimension as a industry — a vital feat.
“As of late, 80% of our industry is within the residential phase the place we paintings with particular person properties (2BHK, 3BHK) and home societies. RWAs purchase solar energy installations for his or her not unusual spaces like lifts, water pumps, boulevard lighting fixtures, and so forth. Most of the high-rise flats you notice in Mumbai, Pune, and Bengaluru are SolarSquare consumers,” she provides.
Overcoming doubt
In January 2024, Top Minister Narendra Modi mentioned that the Union Executive had set a goal of putting in rooftop sun in a single crore families over the following couple of months. When SolarSquare determined to pivot to the residential sun phase in past due 2020, this main marketplace alternative wasn’t obvious.
“Even households weren’t acutely aware of some great benefits of sun. Other people didn’t know the fundamentals. Many of us confuse rooftop sun installations with water warmers. They didn’t know it’s worthwhile to energy your own home with sun. There have been a large number of myths and misconceptions that had to be addressed and consciousness ranges have been very nascent,” explains Shreya.
SolarSquare’s first mandate was once to create a emblem at the again of “instructional advertising and marketing and agree with.” To that finish, they revealed movies, content material, and blogs, and labored with influencers to create consciousness. They’ve additionally revealed a unfastened home-owner’s information to going sun.
“Ahead of putting in anything else, we can lend a hand a home-owner perceive why sun is excellent for them and what sort of sun set up is excellent for his or her house. We determined that we might first train other folks ahead of promoting them anything else. See, there was once rampant mis-selling on this business. Residential sun is a fragmented and unorganised marketplace involving a large number of native operators who do that as an aspect industry. Other people have been offered moment hand or rejected panels as a result of they didn’t know the way to authenticate guaranty or high quality of goods,” explains Shreya.
“Additionally, many have been offered solar energy installations with out after-sales carrier. In case you are purchasing sun, purchasing the suitable after-sales carrier is essential as a result of, with out it, your funding is going down the drain. We needed to train other folks about this stuff,” provides Shreya.
The following greatest problem for SolarSquare was once convincing doable traders that their resolution to foray into the residential phase made industry sense.
“After we went out to lift finances, doable traders idea that residential sun is a small marketplace. Maximum of them have been extra engaged in fintech and e-commerce. They felt that residential sun was once an excessively brick-and-mortar industry the place it’s a must to move from one house to every other, train other folks, shut an order, set up panels at their properties, and handle them for years. No one understood this marketplace and its doable,” says Neeraj.
Chatting with Forbes India in June 2022, Shreya claimed that residential sun was once a ‘$50 billion alternative’ in response to her estimates. It was once an excessively daring declare again then given how global marketplace analysis and advisory firms like Customized Marketplace Insights estimated that all the Indian solar power marketplace was once price $38 billion in 2022.
“Having a look again, I almost certainly wildly underestimated the marketplace. With one crore properties probably going sun within the subsequent 3 years, this marketplace will almost certainly see $25 billion. In a decade, this is able to rather well be a $75 billion to $100 billion marketplace,” claims Shreya.
“It’s a novel time in historical past the place you’ll be able to create a client emblem in power. In a different way, power has at all times been the sport of huge companies and Executive-owned energy crops. Power is now non-public and personal, and we will be able to create a shopper emblem round it. Buyers took a large number of time to construct their figuring out of the probabilities on this marketplace,” she provides.
Find out how to move sun with SolarSquare?
So, how can a home-owner in India set up solar energy of their properties with SolarSquare? A adventure with them starts with registering an inquiry both on their website online or WhatsApp. As soon as consumers check in a question, SolarSquare units up a ‘unfastened sun session’.
“Our sun guide, a educated knowledgeable, will consult with your own home, survey your roof, perceive your electrical energy necessities, learn about your electrical energy expenses, and information you to the suitable sun resolution for your own home. They’ll additionally give an explanation for how solar energy works, what are the other generation alternatives to be had, and so forth. We seek the advice of the buyer with the suitable resolution for his or her house, resolution all their queries, and best then comes the query of promoting anything else to them,” claims Neeraj.
Additionally, many shoppers perceive some great benefits of going sun. No matter cash they put into putting in sun, they’ll recuperate their funding in 3 to 5 years relying at the electrical energy tariff after which experience 20 to 22 years of unfastened electrical energy. Alternatively, the preliminary funding of Rs 2 lakh to Rs 3 lakh to put in a rooftop sun device is incessantly tricky for many middle-class households in Indian towns.
“All the way through this session, we additionally take the shopper’s PAN card, test his mortgage EMI eligibility, and provide the EMI schemes we will be able to be offering to them. Other people can move sun 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 cost to us will get coated in the course of the subsidy given via the Union Executive,” claims Shreya.
To energy a 2 to 3-BHK house that doesn’t have air conditioners, a client will desire a 3-kW to 4-kW sun set up. If such properties have an air conditioner, they are going to require 5-kW to 6-kW.
“Probably the most often offered residential rooftop sun set up is 3-kW. A sun equipment for this power requirement is set Rs 2 lakh, of which the Executive covers Rs 78,000 as a subsidy (underneath the newest ‘PM-Surya Ghar: Muft Bijli Yojana’). The shopper finally ends up paying best about Rs 1.2 lakh,” she explains.
“In this 3-kW device, shoppers finally end up saving Rs 3,000 to Rs 3,500 a month in electrical energy expenses. In a yr, this quantities to roughly Rs 36,000 to Rs 40,000 a yr in electrical energy financial savings. In about 3 to 4 years, you’ll be able to recuperate your whole preliminary funding. Following this, this sun set up can come up with unfastened electrical energy for the following 20 to twenty-five years,” she provides.
“For the shopper on a five-year EMI, their web funding comes all the way down to 0 as a result of their down cost will get coated via the subsidy given via the Union Executive, and per month EMIs are coated thru per month electrical energy financial savings accomplished after going sun. In web phrases, the circle of relatives doesn’t also have to prepare any really extensive sums. We name this the 0 funding scheme of sun, which we train the shopper about right through a session,” says Neeraj.
As soon as the circle of relatives (shopper) comes to a decision to ebook their services and products, the startup attracts up an in depth technical design, looks after all their Executive allows, and applies for his or her subsidy. After the shopper has licensed the general design, they pay an advance which is roofed via the subsidy, after which, the corporate delivers their ready-to-install sun equipment.
“Our ready-to-install equipment comprises our trademark Wind Professional Mount increased constructions, which can be often referred to as module-mounted constructions. Measuring about six ft tall, those constructions are the spine of our installations retaining up the panels. Those constructions are very robust, include a 10-year guaranty, zero-rust ensure, and certification from IIT-Bombay that even right through a cyclone with wind speeds of as much as 170 kmph, not anything will occur to the rooftop sun construction,” she says.
“See, those sun installations are matter to exterior climate, increased, and on most sensible of a roof, and matter to excessive wind pace power. They need to be sturdy. We set up our sun equipment in simply six to seven hours. As soon as put in, the buyer calls for an inspection from their native energy discom. As soon as the web site is inspected, their ultimate financial institution main points are uploaded at the Executive portal and the subsidy comes into their checking account inside simply 30 days,” notes Nikhil.
The Union Executive just lately introduced the Nationwide Portal for Rooftop Sun at the again of which all of those Executive subsidies and programs are achieved.
“We handle these types of programs for the shopper. We handle Executive allows, subsidy programs, EMI programs, inspections, design, procurement, and so forth. We’re a full-stacked emblem that provides end-to-end answers for the Indian shopper,” says Shreya.
Following set up comes an important phase — after-sale carrier. India is a rustic the place roofs are matter to a large number of mud and a lot of exterior climate stipulations. Those components reason a large number of put on and tear on rooftop sun panels.
“We provide a five-year complete sun care plan wherein we handle the whole lot from panel deep cleansing to technical, mechanical, and electric repairs. As soon as put in, it’s your roof and solar power however our accountability. As a coverage, we promote a five-year complete sun care plan in order that shoppers can experience some great benefits of zero-electricity expenses yr after yr. Shoppers can renew their after-sale care plan with us after those 5 years,” notes Neeraj.
“Should you have a look at rooftop sun techniques as an funding, you’re seeing 20-25% IRR (interior fee of go back) if it provides you with the suitable efficiency. Upkeep is vital as a result of that’s the way you realise that 20-25% IRR. Each and every month or 3 months, a educated SolarSquare technician will come to your own home, do a whole technical test, electric repairs, and mechanical test, and do a deep cleansing of the sun panels to make sure any laborious mud or fowl droppings are got rid of. Following this test, you’ll see a spike in energy manufacturing,” claims Shreya.
Having a look to the long run
Some of the greatest demanding situations transferring ahead for firms like SolarSquare will likely be managing sun panels that stretch the tip in their lives. Those discarded panels are incessantly left strewn round or sooner or later get combined up with home forged waste and finally end up in landfills.
In step with a record via the Global Renewable Power Company, “huge quantities of annual (sun panel) waste are expected via the early 2030s” and may contact 78 million tonnes via 2050. Shreya, on the other hand, believes there are methods to increase the lives of those used panels.
“Should you handle your rooftop sun set up smartly, it could last as long as 30-35 years. So, as soon as a client retires their sun rooftop device, they are able to donate the panels to non-profits operating for a worthy reason. Those panels can run for every other 10 years as a result of they’ve been maintained so smartly. Those sun panels may have a second-hand existence too,” she notes.
However she does admit that ventures like SolarSquare must devise complete plans to recycle decommissioned panels. “Since we’re just a nine-year-old corporate, we don’t have any sun installations that experience reached the tip of existence. The query of disposal and recycling is vital. Fortunately, you have already got firms in america that may recycle 70% of the elements and fabrics used to make sun panels,” she says.
In India, in the meantime, a staff of researchers on the Centre for Sustainable Applied sciences (CST), led via Dr Monto Mani and running out of the Indian Institute of Science (IISc) in Bengaluru, is exploring whether or not outdated discarded sun panels may also be upcycled as a development subject matter. With this, they need to prolong the panels’ helpful existence via a couple of a long time.
Alternatively, with regards to their long run as a industry, issues glance excellent.
In December 2021, they raised Rs 30 crore of their Seed spherical. All the way through their Sequence A spherical in October 2022, they raised Rs 100 crore. “Decrease Carbon, some of the global’s greatest local weather tech finances, is our shareholder. It was once their first funding in India. We even have Elevation Capital, who’re traders in Swiggy and City Corporate, and different notable traders on board,” she says.
Additionally, in keeping with a November 2023 record via the Council on Power, Setting and Water (CEEW), greater than 25 crore families in India have the possible to deploy 637 GW of solar power capability on rooftops. In step with a Occasions of India record at the similar, “Additional, the CEEW record discovered that deploying simply one-third of this general sun technical doable may make stronger all the electrical energy call for of India’s residential sector (~310 TWh).”
For ventures like SolarSquare, the alternatives are huge and the long run seems to be promising.
(Edited via Pranita Bhat; Photographs courtesy SolarSquare)
Resources
Home-owner’s Information to Purchasing Rooftop Sun via SolarSquare
‘SolarSquare’s co-founders at the $50 billion alternative to carry solar energy to Indian properties’ via Harichandran Arakali; Printed on 14 June 2022 courtesy Forbes India
‘India Sun Power Marketplace 2023–2032’; Printed in Would possibly 2023 courtesy Customized Marketplace Insights
‘India has 637 GW of residential rooftop solar power doable: CEEW record’ via Hemali Chhapia; Printed on 17 november 2023 courtesy Occasions of India