Sustainable infrastructure debt manager Pentagreen Capital and Swiss-headquartered clean energy firm Candi Solar have signed a US$50 million financing partnership to deploy 400 MWp of solar and battery energy storage system (BESS) capacity across India.
The capital deployment will finance rooftop, ground-mounted, and open-access solar assets integrated with energy storage for commercial and industrial (C&I) clients, with a focus on small and medium-sized enterprises (SMEs). The transaction supports Candi Solar’s corporate growth strategy to double its operational capacity to over 1 GW within the next 24 months.
Pentagreen Capital executed the debt strategy under the Green Investments Partnership (GIP), a blended finance platform operating within Singapore’s broader Financing Asia’s Transition Partnership (FAST-P) initiative. Pentagreen is backed by founding partners HSBC and Temasek, alongside global development institutions including the International Finance Corporation (IFC), FMO, and British International Investment.
Key operational, environmental, and financial details of the transaction include:
- Capacity and generation: Funds approximately 400 MWp of solar and BESS assets expected to generate 560 GWh of clean power annually.
- Target offtakers: Decarbonises power consumption across 227 C&I customers, of which 78 per cent belong to India’s SME segment.
- Emissions mitigation: Estimated to eliminate approximately 397,000 tonnes of CO₂ emissions each year.
- Business model: Utilises Candi’s capital-light, turnkey model—incorporating Power Purchase Agreements (PPAs) and Performance-Linked Models (PLLs)—allowing SMEs to adopt clean generation with no upfront capital expenditure.
- Market alignment: Aligns with India’s national goal of reaching 500 GW of non-fossil fuel capacity by 2030 and addresses the SME sector, which generates roughly 135 MtCO₂e in annual emissions.
Marat Zapparov, Chief Executive Officer of Pentagreen Capital, stated that expanding access to clean energy debt is both an economic and strategic priority for India as it reduces fossil fuel imports. Zapparov added that the partnership unlocks targeted capital for an underserved SME market, enabling smaller businesses to stabilise operational power costs.
Fabio Eucalipto, Co-founder and Director of Candi Solar, noted that extending the energy transition to middle-market businesses requires balance-sheet-light financing alongside end-to-end operational execution. Eucalipto confirmed that the $50 million facility, combined with an equity round scheduled for early next year, provides the foundation to scale Candi’s operational footprint beyond 1 GW.
