Investment Overview
Nithin Kamath, the co-founder of Zerodha, has announced an investment in SundayGrids, a startup innovating the accessibility of solar energy in India. This move is particularly aimed at urban households lacking adequate rooftop space for solar installations.
The Challenge and Solution
Despite government subsidies, only about 10% of urban households in India have adopted rooftop solar panels, largely due to space constraints in apartments and rented homes. SundayGrids addresses this issue by establishing solar power plants in various locations, allowing individuals to purchase a share of the capacity. This method enables users to earn credits to reduce their electricity bills, even if the plant is not located nearby.
Government Support and Market Potential
Kamath highlighted the growing governmental support for third-party solar models, suggesting a significant potential for scaling this model across India. Such regulatory advancements are likely to bolster the adoption of solar energy, making it more accessible to a broader population.
Operational Model
SundayGrids operates by pooling capital from multiple residential users to finance solar farms on commercial or industrial rooftops. The commercial entities utilize the solar power while the generated revenue credits back to the residential investors, offsetting their electricity costs and potentially earning them additional income.
Future Prospects
With the initiative now live across India, SundayGrids is set to revolutionize how solar energy is consumed and invested in, offering a sustainable solution that extends beyond traditional homeownership. This model not only supports environmental sustainability but also promotes financial benefits for investors.
Source: bloombergquint.com
