In an interview with Renewable Watch, Nishant Sood, Managing Director, Candi Solar, talks about the company’s portfolio, business model, future targets, challenges in the commercial and industrial (C&I) rooftop solar market, and policy suggestions to solve these issues. Edited excerpts…
What is the current portfolio of Candi Solar? What range of solar solutions and services does it offer?
Candi Solar’s current operational capacity stands at 120 MW, with 90 MW in India and 30 MW in South Africa, reflecting our commitment to power businesses sustainably. We offer a wide range of solutions, including rooftop-mounted solar, open access, carport solar, battery energy storage systems (BESS), and flexible financing models such as on-balance sheet options (performance linked loans [PLL], solar loans) and off-balance-sheet options (PPAs). We recently introduced an innovative generation insurance model to address underperforming solar assets. This solution ensures performance insurance, that is, guaranteed performance generation, a pay-for-value structure, and hassle-free operations that align perfectly with our customers’ long-term energy goals.
Please share a case study on one of your BESS projects?
With battery storage becoming more affordable, businesses are increasingly exploring its potential for reliable and sustainable energy. At Candi Solar, we have been at the forefront of implementing impactful BESS solutions, drawing from our extensive experience in South Africa. Our recent project at Ngwenya Lodge, located near the Kruger National Park, South Africa, is a great example.
Ngwenya Lodge struggled with frequent power outages, some lasting days, which disrupted its ability to deliver the high-end luxury experience its guests expected. Financing was also challenging due to its unique share block structure, and it could not fully utilise available tax credits.
To address these issues, we implemented a 994 kWp ground-mounted solar power system paired with a 1,500 kVA/3,000 kWh battery storage solution. This hybrid system ensures reliable backup power for Ngwenya Lodge, with financing tailored to its needs and a customised performance-linked installment sale structure to streamline implementation. The solution enabled the lodge to maintain its high standards of service while staying environmentally conscious.
With proven expertise in delivering solutions like this, we are excited to help businesses in India unlock the growing potential of BESS and achieve their energy goals.
Our long-term vision is to build a 1 GW distributed solar portfolio within five years.”
What is your business model and how has it evolved over the years?
Candi Solar began as a solar developer, that is, an independent power producer (IPP) specialising in rooftop solar systems for SMEs. Over time, we have taken up larger open access projects, leveraging our expertise to cater to businesses with more significant energy needs.
From the outset, we have been an end-to-end energy provider, evolving our model to include innovative financing solutions such as PLL, generation insurance (GI), and solar loans. We are also uniquely positioned to cater to MSMEs, using our proprietary credit assessment tool to create customised, performance-driven financial solutions. This includes taking over underperforming systems, financing them and optimising their performance. What sets us apart is our flexibility to adapt solutions to specific client requirements and our use of automation, enabling us to manage distributed portfolios efficiently.
What are the key challenges faced by the company in the C&I solar market? Please share your suggestions to overcome these.
One of the primary challenges we face in the C&I solar market is the lengthy sales and construction cycle, which takes seven to nine months from initial contact to revenue generation. This is further complicated by frequent policy fluctuations, limited financing options for MSMEs, and the reluctance of traditional banks to fund non-A-rated customers or projects without extensive collateral. Regulatory inconsistencies, such as net metering restrictions, state-specific rules, and challenges in obtaining approvals, further reduce uptake.
Another significant barrier is the lack of standardised financing mechanisms for MSMEs. Many financing options are designed for larger companies, leaving smaller enterprises underserved. Additionally, changes in technology requirements and state-level charges, such as grid support fees and cross-subsidy surcharges, add to the financial burden on C&I solar customers, as do volatility in other regulations, such as customs duties, taxes and regulatory approvals.
To overcome these challenges, we focus on:
- Raising awareness about solar energy’s financial and sustainability benefits, helping businesses understand its long-term value;
- Offering innovative financing models tailored to the MSME segment, such as short-term leases, PLL and GI, which minimise upfront costs and mitigate performance risks;
- Streamlining project management processes through automation and improving workflows to reduce timelines and enhance efficiency;
- Advocating for policy uniformity and transparency, especially regarding net metering and open access regulations, to create a more conducive environment for solar energy adoption.
- By addressing these systemic challenges and continuing to innovate, we aim to empower businesses of all sizes to transition seamlessly to clean energy.
What are the company’s long-term goals for scaling up operations? Are there any plans for funding to support this growth?
Candi Solar’s long-term vision is to build a 1 GW distributed solar portfolio within five years, underscoring our commitment to scaling sustainable energy solutions. We are leveraging our expertise in rooftop solar, open access, and storage solutions to achieve this. To support this growth, we recently secured $18 million in debt financing and raised $38 million in equity through a Series C funding round, which will help finance an additional 200 MWp of solar power projects. These funds will also support strategic hiring initiatives to sustain rapid expansion.
“The policy environment surrounding the C&I solar segment in India can be described as “tough to navigate”, with frequent changes in regulations, net metering rules and technology requirements across states.”
As the world embraces decentralised power generation, we see ourselves emerging as the premier rooftop solar player in the C&I space across all our markets. Our innovative solar and battery solutions, coupled with pioneering financial products, will accelerate our purpose of powering a more sustainable planet, one business at a time.
What is your perspective on the policy environment surrounding the C&I segment in India? What more needs to be done to give a fillip to this segment?
The policy environment surrounding the C&I solar segment in India can be described as “tough to navigate”, with frequent changes in regulations, net metering rules and technology requirements across states. These inconsistencies hinder project adoption and create uncertainty for developers.
Achieving policy uniformity and consistency across states is critical to simplifying processes and encouraging broader participation. Enhanced transparency in regulatory frameworks will build trust and give developers confidence to invest in long-term projects. Additionally, state-level incentives for MSMEs and streamlining approvals for open access projects can significantly boost adoption.
India has immense potential to lead the global solar transition, but realising this vision will require a collaborative effort between policymakers and the solar industry to create a more streamlined and supportive environment for renewable energy growth.
