INSUBCONTINENT EXCLUSIVE:
Demand for solar energy in power-starved Nigeria has soared in the last decade thanks to worsening grid reliability and rising fuel costs
The company just raised a $15 million Series B extension (on top of a $3 million B1 round last year), bringing its total for the round to
prices).Since then, petrol prices have jumped nearly 500%, making power generators, once seen as the more affordable alternative to
launched Arnergy in 2013 to provide solar systems to homes and businesses across sectors like hospitality, education, finance, agriculture,
and healthcare.What began as a resilience play is now a cost-savings strategy changing the economics of adoption for the clean tech backed
last year.While outright purchases comprised 60% to 70% of revenue in 2023, they accounted for just 25% of sales last year
On the other hand, lease-to-own, where customers pay fixed monthly fees over five to 10 years before owning the system, has gained more
traction.One reason for this change is affordability when compared to electricity tariffs
Until recently, many people viewed long-term leases as costlier than running diesel or petrol generators
With our product, that drops to ?96,000 (~$60)
He added that many existing customers are returning to double their solar capacity or switch completely off-grid as a result.Arnergy tripled
its lease customer base between 2023 and 2024 and expects to grow it 4-5x this year
Naira revenues have climbed accordingly and are on track to quadruple by the end of the year.Dollar revenues, on the other hand, have
remained flat due to currency devaluation, but Adeyemo said the company is building FX revenue through dollar-denominated B2B2C partnerships
and potential expansion into Francophone Africa.Scaling amidst yet another government policySo far, Arnergy has deployed over 1,800 systems
across 35 Nigerian states, totaling 9MWp of solar and 23MWh of battery storage.Arnergy plans to use its new funding led by Nigerian private
equity firm CardinalStone Capital Advisers (CCA) to install more than 12,000 systems by 2029
Breakthrough Energy Ventures as well as British International Investment, Norfund, EDFI MC, and All On participated in the round.But hitting
that target requires a strategic shift
For nearly a decade, Arnergy handled sales in-house
projects including energy-as-a-service (EaaS) solutions for multinationals, says Adeyemo
solar panel imports to boost local manufacturing
The move has drawn backlash from stakeholders who argue that domestic capacity is far from ready.Adeyemo agrees with the goal, but not the
an environment with the right infrastructure, policy stability, and access to capital so that local factories can ramp up over the next
Otherwise, we risk doing more harm than good, both to the industry and to the millions of Nigerians who now rely on solar as their primary
