Bill Gates-backed Arnergy to expand solar access in Nigeria with $18M as demand surges
Summary
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 $18 million.That surge in demand for solar systems follows significant policy shifts, most notably the removal of Nigerias decades-old fuel subsidy in May 2023 (the governments decision long debated ended its practice of covering the gap between global and local fuel prices).Since then, petrol prices have jumped nearly 500%, making power generators, once seen as the more affordable alternative to unreliable grid power and solar systems despite environmental hazards, far costlier to run.Arnergys pitch has changed with the times. 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. 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. Now, its adopting a partnership-driven model with business clients and physical retail outlets outside Lagos to reach more customers in Nigerias power-starved market.The Lagos-based cleantech is in talks to raise additional local debt from banks and DFIs to support these projects including energy-as-a-service (EaaS) solutions for multinationals, says Adeyemo.Yet as Arnergy prepares to scale, a proposed policy could threaten its momentum.Last month, Nigerias government announced plans to ban solar panel imports to boost local manufacturing. He warned that a premature ban could stall an industry thats only just getting off the ground.According to the CEO, Nigeria needs to create an environment with the right infrastructure, policy stability, and access to capital so that local factories can ramp up over the next three to five years.
Funding
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