Rooftop solar solution provider MYSUN has joined hands with Tata Cleantech Capital Ltd (TCCL) to raise ₹150 million (~$2 million) in debt funding.

Tata Cleantech Capital is a joint venture between Tata Capital Limited and International Finance Corporation.

Recently, MYSUN had launched its solar asset vehicle MYSUN+ with an aim to develop solar projects under the distributed and open access models by infusing ₹6 billion (~$80.12 million) in the initial phase.

The term loan will be put to use to fund the existing projects of MYSUN+, while the credit line will be pumped into building the projects in the pipeline.

Commenting on MYSUN’s growth story, which has a presence in nine Indian states, including Rajasthan, Maharashtra, Uttar Pradesh, Gujarat, Madhya Pradesh, Andhra Pradesh, and the National Capital Region, Gagan Vermani, the Founder and CEO of MYSUN, said, “We have got a very promising traction in our newly launched asset vehicle MYSUN+, and this funding from TCCL will help us de-leverage our equity capital and develop a larger pipeline of projects.”

The company is looking to develop about 200 MW of projects over the next few quarters, which are currently at various stages of development.

Vermani added that despite the global pandemic, the firm has been witnessing a strong demand for clean and affordable solar power. The firm said it has expanded its business to cater to commercial and industrial customers, smaller businesses, and even residential consumers.

The firm is mulling foraying into electric vehicle charging and some newer product lines.

MYSUN+ has also partnered with some large corporates in India to assist in their solarization plans.

Meanwhile, TCCL had partnered with Green Climate Fund (GCF) to develop its rooftop solar portfolio through a $100 million credit line. This term loan and credit line raised by MYSUN is a part of this GCF facility.

GCF, the world’s largest dedicated fund for climate action, had approved more than $1 billion funding for new projects and programs to help mitigate climate change in developing countries back in 2018.

In January this year, U.K.’s development finance institution and impact investor CDC Group announced a $30 million facility to Tata Cleantech Capital through CDC’s directed green lending facility.

Commenting on the latest deal, Manish Chourasia, Managing Director of Tata Cleantech Capital, said, “TCCL has an active solar rooftop funding program, which aims to mainstream financing in this segment. We are already assisting multiple entities in the adoption of rooftop solar systems. Our partnership with MYSUN gives us the opportunity to further accelerate India’s energy transition. Rooftop solar represents only 11% of total solar installation in India, which is significantly lower than the targeted 40% share, and TCCL aims to bridge the gap to decarbonize energy consumption.”

In March 2020, MYSUN raised ₹320 million (~$4.2 million) from its existing investors as part of its pre-series A round.

According to Mercom’s recently published 1H and Q2 2021 Solar Funding and M&A Report, announced debt financing activity in 1H 2021 ($8.2 billion in 32 deals) was 125% higher compared to the first half of 2020, when $3.7 billion was raised in 17 deals. Spurred by low interest rates, a record $2 billion was raised through seven securitization deals in 1H 2021. Cumulatively, over $9 billion has been raised through securitization deals since 2013.