Pentagreen Capital and Candi Solar have signed a US$50 million financing partnership to support the development of approximately 400 MWp of solar power and battery energy storage projects across India. The partnership aims to expand access to renewable energy for small and medium-sized enterprises (SMEs), while supporting India’s clean energy transition and strengthening the country’s commercial and industrial (C&I) renewable energy market.
Pentagreen Capital, which manages the Green Investments Partnership (GIP) under Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative, will provide financing to support Candi Solar’s expanding project portfolio. The funding will cover rooftop solar, ground-mounted solar and open-access installations integrated with battery energy storage systems (BESS) across key business hubs in India.
The projects are expected to generate approximately 560 GWh of renewable electricity annually and support the decarbonization of 227 commercial and industrial customers. SMEs are expected to account for 78% of these customers. The installations are also projected to avoid around 397,000 tonnes of carbon dioxide emissions every year, contributing to India’s efforts to reduce industrial emissions and increase renewable energy consumption.
The financing partnership will also support Candi Solar’s growth plans, with the company targeting more than 1 GW of operational solar capacity over the next 24 months. This represents more than a doubling of its existing total capacity. The company said the partnership is an important milestone in its expansion strategy, alongside additional shareholder commitments and an equity funding round planned for early 2027.
Marat Zapparov, Chief Executive Officer of Pentagreen Capital, said India’s rising energy demand and the need to reduce oil imports have made the transition to clean energy both an economic and strategic priority. He highlighted the importance of providing flexible solar and storage solutions to SMEs, which often face challenges in accessing renewable energy financing. The partnership is expected to help businesses stabilize energy costs while improving India’s energy security.
Fabio Eucalipto, Co-founder and Director of Candi Solar, said smaller businesses should have access to reliable and affordable clean energy without making significant upfront capital investments or managing complex energy infrastructure. He noted that combining rooftop and ground-mounted open-access solar projects with flexible financing would allow the company to deliver customized renewable energy solutions at scale.
SMEs play a significant role in India’s economy, contributing approximately 31% of the country’s Gross Domestic Product and 35% of manufacturing output. However, access to renewable energy remains limited for many businesses in this segment. According to NITI Aayog’s Roadmap for Green Transition of MSMEs, Indian SMEs generate approximately 135 million tonnes of carbon dioxide equivalent emissions annually, largely due to fossil fuel-based energy consumption.
Under Candi Solar’s turnkey shared-value model, customers pay only for the clean electricity generated while the company manages engineering, procurement, construction and long-term operations. This approach allows businesses to adopt solar and storage solutions without upfront capital expenditure.
The partnership is expected to strengthen distributed renewable energy deployment in India by making solar power and battery storage more accessible to businesses, particularly SMEs, while supporting industrial decarbonization and long-term energy cost management.
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