Hyderabad-based rooftop solar solutions company Freyr Energy has secured an equity investment of $7 million which it said will be used to increase the adoption of solar energy among retail customers in India.

The funding round was led by EDFI ElectriFI, a European Union-funded impact investment facility managed by EDFI Management Company, which contributed $3 million to the investment.

Several other investors participated in this round, including Schneider Electric Energy Asia Fund, Lotus Capital, Maybright, and VT Capital.

Back in 2021, Freyr announced an equity investment of ₹180 million (~$2.3 million) from Total Carbon Neutrality Ventures, Schneider Electric Energy Access Asia, and Capital 4 Development Partners.

Rodrigo Madrazo, the CEO of EDFI Management Company, said, “The solar market for the retail sector in India is highly fragmented and disorganized. In this context, we do see an opportunity to team-up with Freyr Energy in bringing solar solutions combined with technology and consumer financing to allow retail customers to transition seamlessly to solar power and reduce their electricity bills.”

Abhishek Agarwal, Founder & Managing Partner, said, “India’s retail sector accounts for more than 50% of its total electricity consumption. Rooftop solar makes up less than 2% of this energy mix today. Solar power, which is 60% less expensive than grid power, presents a substantial market opportunity. Freyr Energy is very well positioned to become a market leader and create significant economic and environmental impact.”

In the second quarter of the calendar year 2023, India added 387 MW of rooftop solar capacity, accounting for almost 23% of total solar installations, according to Mercom India’s Q2 Rooftop Solar Market Report. India’s cumulative rooftop solar capacity reached 9.6 GW at the end of the quarter.