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Chennai-headquartered SolarTown Energy Solutions Pvt Ltd, which is specialising in the sale, lease and installation of solar rooftop systems for residential, commercial and industrial customers, has claimed to have raised early stage funding from GREX and is also on pace to close its Series A round.
The undisclosed funding is expected to support company’s growth and accelerate its expansion plans, driven by successful zero-down solar lease model for residential and small commercial customers in India.
The transaction comes at a time when the Indian solar industry appears to be making much noise about the difficulty in finding investors for the 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 no money down leasing model is unique because it has made solar solutions affordable for a large swath of India’s population. As a result, the addressable market in front of us is massive,” said CEO of SolarTown Vikram Dileepan.
It is gathered that the major constraint for people in installing rooftop solar is the substantial upfront cost. But, SolarTown Energy Solutions is addressing this barrier by providing rooftop solar solutions for upto a 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 that offers a zero-down lease option 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 has provided us an excellent platform to raise early-stage funds as we continue working to close our Series A funding round,” he added.
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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