Shell buys 20% stake in Indian solar firm Orb Energy
Shell‘s business unit, Shell New Energies, closed a series C round for a 20% stake in Indian solar firm Orb Energy on October 4, 2019.
Orb Energy, located in Bengaluru in South India, supplies small and medium sized businesses with financing to invest in solar energy projects.
Launched in 2006, Orb Energy has sold over 160,000 rooftop solar energy systems in India, with an entire capacity of approximately 75MW. Nearly all 75 megawatts it’s installed thus far is C&I. Orb Energy CEO Damian Miller, projects they will receive another 40 to 50 megawatts of orders this year.
“A C&I [solar] customer in India can expect a payback period of three to four years, totally unsubsidized. That’s because prices are very low and solar insolation is very high. Solar is now the cheapest form of power for any C&I customer in India. If they have a rooftop, they should put solar on it.â€
Orb Energy CEO Damian Miller
Orb has been backed by Zouk Capital, Renewables Capital, and high net worth angel investors since its founding in 2006. Over the years, Orb has closed a Series B round for $1.14M and raised an additional $15M in debt from Dutch development bank FMO and others.
Orb’s loan product with support from Shell’s investment will drive additional financing to SMEs in India allowing greater access to “clean, lower-cost electricity.”
Shell approached Orb in the deal and secured a seat on the board. The valuation has not been disclosed, but Shell is now the largest investor in the corporation.
