Mumbai-based rooftop solar company SolarSquare has raised $40 million in a Series B funding round.

Lightspeed led the round with participation from Lightrock. SolarSquare’s current investors, Elevation Capital, Lowercarbon, Rainmatter, and Gruhas Proptech, also participated in this funding round.

SolarSquare aims to use the newly raised funds to expand operations to over 50 cities from its current footprint of 20. The company also plans to invest in technology, talent, brand building, and developing an asset management tech stack for remote monitoring and diagnostics of residential solar systems.

Shreya Mishra, CEO of SolarSquare, said, “Only 1% of homes in India have adopted solar so far – we want to accelerate solar adoption by making it easy for families to switch to solar.”

SolarSquare has installed rooftop solar on over 20,000 homes and 200+ cooperative housing societies India. The company is present in cities including Bengaluru, Delhi, and Hyderabad, as well as states such as Gujarat, Madhya Pradesh, and Maharashtra.

Before this round, SolarSquare also raised $19.5 million across three rounds of funding from Meesho, NoBroker, UrbanLadder, Paytm, and GoFynd.

In February this year, the company acquired PV Diagnostics, a consultancy solutions provider in the solar industry, to enhance the quality and efficiency of its residential solar installations throughout India.

In 2022, SolarSquare raised ₹1 billion ($12.8 million) as part of its series A funding round led by Elevation Capital and U.S.-based climate-focused fund Lowercarbon Capital. Existing investors, including Good Capital, Rainmatter, Better Capital, and angels Vidit Atrey and Sanjeev Barnwal (Meesho), also participated in this funding round.

In an exclusive interview with Mercom India, Shreya Mishra, Co-Founder of SolarSquare, explained how the recent programs will help drive the installations in the country and what policy modifications in certain states could increase the adoption of rooftop solar. Read the interview here.