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SolarTown Energy raised early-stage funding from GREX

Chennai-headquartered SolarTown Energy Solutions Pvt Ltd, which is into sale, lease and installation of solar rooftop systems for residential, commercial and industrial customers, has raised early-stage funding from GREX and is also on pace to close its Series A round, according to a press release from the company.

Without disclosing the quantum of funds raised, the company said it would help accelerate expansion plans, driven by a successful zero down-payment solar lease model for residential and small commercial customers in India.

The transaction comes at a time when the Indian solar industry appears peeved at the difficulty in finding investors for MW-scale projects.

“This deal of a solar rooftop developer raising early-stage funds is giving hope to the industry that companies with innovative solutions can still attract investor attention,” said a solar industry analyst.

“SolarTown’s leasing model is unique because it has made solar solutions affordable to a large section of the population. As a result, the addressable market in front of us is massive,” said SolarTown CEO Vikram Dileepan.

It is gathered that the major constraint for people in installing rooftop solar is the substantial upfront cost.

SolarTown is addressing this barrier by providing rooftop solar solutions for up to 20-year fixed monthly lease option at a guaranteed cost that is lower than the rates of power distribution utilities.

This model is reported to be one of the first for rooftop installations smaller than 100 kW, shielding small residential and commercial customers against rising electricity prices, said a company statement.

“Since the price of electricity is cost-prohibitive and continues to increase, the demand for rooftop solar has never been greater than it is today,” said Dileepan.

GREX is an integrated exchange-like platform for unlisted companies, bringing together private eligible investors and high-growth unlisted companies for information exchange and securities transactions.


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