India's SolarSquare is securing $60 million with a valuation of $500 million. The company has energized 50,000 households.

      TL;DR: SolarSquare is seeking to raise between $55 million and $60 million at a valuation of up to $500 million from B Capital and Lightspeed, with its annual recurring revenue surpassing $104 million.

      SolarSquare, an Indian startup focusing on rooftop solar, is in advanced negotiations to secure $55 million to $60 million at a valuation ranging from $450 million to $500 million, according to TechCrunch. B Capital and Lightspeed Venture Partners are expected to co-lead the Series C funding round. If successful, this deal would more than double SolarSquare’s valuation from 18 months ago.

      Lightspeed previously led the company’s $40 million Series B round, which had a post-money valuation of about $200 million in December 2024. This time, they are investing through their growth fund, which has supported companies like Razorpay and Zepto. Existing investor Elevation Capital is also anticipated to participate.

      The financing round has not yet concluded, and terms may still change. To date, SolarSquare has raised $61.1 million in equity. The funding round is expected to finalize next month.

      Based in Mumbai, SolarSquare was established in 2015. The company designs, installs, and maintains rooftop solar installations for residential homes, housing societies, and businesses. It has installed more than 150 megawatts of capacity across 29 cities in nine states, providing power to nearly 50,000 homes and about 400 housing societies. Enterprise clients include Swiggy, Zepto, and iD Fresh Food. The majority of the company’s business now comes from residential customers and housing societies after a shift away from lower-margin industrial projects.

      SolarSquare has surpassed an annualized revenue run rate of more than ₹10 billion (approximately $104 million) and aims to achieve 200 megawatts in its residential solar portfolio this year. This growth is fueled by India's fragmented rooftop solar market, predominantly served by small local installers.

      By 2025, India became the world’s third-largest solar power producer, ranking behind China and the U.S. Its cumulative installed solar capacity increased from around 3 GW in 2014 to over 150 GW in 2026. The government has set a goal of reaching 500 GW of renewable energy capacity by 2030, with solar expected to account for more than half of that.

      Government subsidies have significantly boosted residential adoption, particularly through the PM Surya Ghar Muft Bijli Yojana scheme, which offers subsidies covering up to 60% of rooftop solar installation costs for households, spurring demand in urban and semi-urban regions. SolarSquare aims to be the comprehensive platform capturing this demand at scale.

      The global solar landscape in 2026 presents a paradox. While India is rapidly expanding its rooftop solar installations, Elon Musk's xAI is powering data centers with $2.8 billion worth of gas turbines. Tesla's solar division generates $2.8 billion in quarterly revenues but is overlooked by Musk's AI venture. The growth of SolarSquare illustrates that terrestrial solar economics are viable at the consumer level, even as the AI industry leans toward alternatives.

      India's technology adoption is facing pressure from several factors. In the first quarter of 2026, the sub-$100 smartphone market plummeted by 59% year-on-year due to rising memory prices. The same nation that is quickly implementing rooftop solar is simultaneously losing access to affordable smartphones. SolarSquare plays a crucial role in building the infrastructure that supports India's digital economy; without affordable power, other components of the ecosystem cannot function.

      The competitive landscape features Tata Power, Waaree Energies, Luminous Power Technologies, and Exide Industries, all of which operate through dealer networks and partnerships with local installers. SolarSquare's edge lies in its vertical integration model, maintaining control over customer relations from initial design to installation and ongoing maintenance. While this model is more challenging to scale than a dealer network, it fosters better customer retention.

      SolarSquare chose not to comment, and B Capital, Lightspeed, and Elevation Capital did not respond to inquiries. If the funding round closes at the proposed terms, it will rank among the largest venture investments in India’s clean energy sector this year.