SHV Energy, a Netherlands-based global distributor of liquefied petroleum gas (LPG) has acquired a majority stake in India-based distributed solar company SunSource Energy. The investment amount is undisclosed.

SunSource Energy, which initially focussed on design and engineering, procurement, and construction of solar projects, expanded to also invest in commercial and industrial (C&I) solar projects to sell energy to its customers since 2018. The company also develops and invests in open access solar projects. SunSource now has a presence across South-East Asia.

SunSource Energy’s co-founders Kushagra Nandan and Adarsh Das will continue to run the company and remain shareholders.

The acquisition is part of SHV Energy’s renewable solutions strategy and ensures SunSource’s solar portfolio expansion to over 550 MW by 2023.

With this transaction, private equity firm Neev Fund, promoted by India’s largest commercial lender State Bank of India and the U.K. government will exit from its three year investment in SunSource Energy.

In 2018, SunSource Energy had raised capital from Neev Fund to develop solar projects across various states of the country. The investment was used to develop solar projects in eight states with low levels of capital investment.

Meanwhile, SHV Energy enters India’s growing renewable energy market, with a focus on solutions for C&I customers and capitalizes on SunSource Energy’s experience in decentralized energy projects. SHV Energy already operates in India through its ‘SUPERGAS’ brand, a leading local LPG player founded in 1996.

“We are pleased to have reached this agreement and look forward to collaborating with our new SunSource Energy colleagues to address the evolving energy needs of commercial and industrial consumers. India is a key market for SHV Energy, and this investment underpins our long-term commitment to the region and advancement of renewable energy solutions,” said Bram Gräber, Chief Executive Officer, SHV Energy.

Adarsh Das, Co-Founder, and Chief Executive Officer, SunSource Energy, said, “We are delighted that SHV Energy has partnered with us. We are happy to have a like-minded strategic long-term investor on board who believes in our model of sustainable development and decentralized energy solutions. This investment will enable us to leverage SHV Energy’s global presence and expertise to emerge as a leading global distributed solar company.”

Kushagra Nandan, Co-Founder, and President, SunSource Energy, added, “SunSource Energy will be able to draw strength from SHV Energy’s deep global experience in energy markets, well-tested processes, and business practices. We look forward to contributing further towards India’s clean energy goals and offer more products that continue to solve energy transition challenges faced by commercial and industrial customers.”

According to Mercom India Solar Tracker, SunSource Energy has 40 MW projects in operation and 36 MW are under development as of March 2021.

Global VC funding for the solar sector in Q1 2021 came to $1 billion in 14 deals, a 33% increase compared to $773 million raised in 12 deals in Q4 2020, according to Mercom Capital Group’s Q1 2021 Solar Funding and M&A Report.