Freyr Energy expands rooftop solar reach across Indian homes

HYDERABAD, Freyr Energy is making a push into India's residential rooftop solar market. The Hyderabad-based company says it has installed systems on more than 15,000 homes across the country so far.

The firm focuses on small-scale solar for individual houses and apartment buildings. Its typical residential installation ranges from 1 kilowatt to 10 kilowatts. Customers can pay upfront or choose a financing plan.

India's rooftop solar sector has lagged behind utility-scale solar for years. High upfront costs and complex paperwork slowed adoption. But things are changing. The government wants 40 gigawatts of rooftop solar capacity by 2022. The deadline has passed, but the target remains. As of March 2025, India had installed about 11 GW of rooftop solar.

Freyr Energy sees an opening. The company offers a digital platform that handles site surveys, design, installation, and maintenance. Customers can track their system's performance through a mobile app.

"We want to make solar as simple as buying a fan," said a company spokesperson. "The process should be transparent and hassle-free."

State-level policies are also shifting. Several states now offer net metering, allowing households to sell excess power back to the grid. Delhi, Gujarat, and Maharashtra have been among the most active. Freyr Energy operates in 12 states, with plans to enter more.

Costs have dropped sharply. A 3 kW rooftop system now costs roughly ₹1.5 lakh to ₹2 lakh, down from ₹3 lakh five years ago. Panel prices have fallen by more than 70% over the past decade. That makes the payback period shorter, typically 3 to 5 years for most homes.

But challenges remain. Some state discoms resist net metering, citing revenue loss. Apartment dwellers often face difficulties getting common-area approvals. And many homeowners still lack awareness about subsidies and financing options.

Freyr Energy is trying to address those gaps. It partners with banks and non-banking financial companies to offer loans at 6-8% interest. The company also runs awareness campaigns in local languages.

Competition is heating up. Tata Power Solar, Luminous, and Amplus Solar are all chasing the same customers. But Freyr Energy says its digital-first approach gives it an edge. The platform uses AI to design systems and generate quotes in minutes.

The company was founded in 2014 by Radhika Choudary and Saurabh Marda. It started as a small consulting firm and shifted to residential installations in 2017. Today, it employs about 300 people.

Freyr Energy has raised funding from investors including the Shell Foundation and the U.S. Agency for International Development. It plans to use that capital to expand into Tier 2 and Tier 3 cities.

"The next wave of solar adoption will come from smaller towns," the spokesperson said. "That's where the growth is."

India's total rooftop solar potential is estimated at 124 GW. The government wants 40 GW by 2030. Freyr Energy aims to capture 5% of that market within five years.

For now, the company is focused on building trust. It offers a 25-year performance warranty on panels and a 5-year warranty on inverters. It also provides free annual maintenance for the first two years.

Customer satisfaction is key. One user in Hyderabad, who installed a 5 kW system in 2023, said his monthly electricity bill dropped from ₹4,500 to ₹800. "It was worth it," he said. "The savings are real."