Arnergy, which provides solar power systems to homes and businesses in Nigeria, raises $3M
Summary
Alongside the $4 million debt financing obtained over the past few years from both local lenders, such as Nigerias Bank of Industry, and foreign ones, the companys investments have led to the deployment of over 7MW of solar PV systems and the installation of over 20MW of lithium battery energy storage solutions (BESS).Despite the strides made, significant challenges persist in the sector. The recent removal of fuel subsidies, escalating diesel prices, and challenging macroeconomic conditions underscore the urgent need for energy cost savings among retail and business customers. So the combination of all of those more or less gave us signals based on triggers we set when we last raised money.Adeyemo emphasizes that the Nigerian market has reached a stage where solar electricity is becoming cost-competitive compared to grid power. Additionally, its noteworthy that even in regions like Europe, the U.S., or Australia, where the grid reliability is high, theres a growing trend toward solar energy adoption despite the removal of rebates in certain instances.To that end, the 10-year-old clean tech company, which has witnessed a 10x revenue growth over the last 5 years, plans to maintain its service provision across all 36 states where it operates in Nigeria through min-grid developers. The upcoming funding round aims to facilitate further expansion of its operations and accelerate the adoption of its renewable energy products and solutions within and outside Nigeria.We are proud of our partnership with Arnergy over the past years.