Nigerian solar energy provider Arnergy, backed by Bill Gates’ Breakthrough Energy Ventures, has raised $18 million in Series B funding to expand access to clean power across the country. The investment comes as demand for solar solutions surges amid rising fuel costs and unreliable grid electricity.
The Lagos-based company secured a $15 million extension to its Series B round, building on a $3 million raise last year. The fresh capital will fuel Arnergy’s ambitious plans to install over 12,000 solar systems by 2029, up from its current 1,800 deployments.
Arnergy’s growth aligns with major shifts in Nigeria’s energy landscape. The removal of fuel subsidies in 2023 sent petrol prices soaring nearly 500%, making solar an increasingly attractive option for homes and businesses.
“We can now clearly show customers how our systems save them money monthly compared to petrol, diesel, or even grid power,” said Femi Adeyemo, Arnergy’s founder and CEO.
The company has pivoted its strategy to focus on lease-to-own models, allowing customers to pay fixed monthly fees over 5-10 years. This approach has gained traction as electricity costs climb, with lease-to-own sales outpacing outright purchases.
Arnergy plans to use the funding to expand its reach through partnerships with businesses and retail outlets beyond Lagos. The round was led by Nigerian private equity firm CardinalStone Capital Advisers, with participation from previous backers including Bill Gates’ Breakthrough Energy Ventures.
While Arnergy eyes growth, a proposed government ban on solar panel imports could pose challenges. Adeyemo supports local manufacturing but warns against premature restrictions that could hinder the industry’s progress.
“Let’s build capacity before shutting the door on imports,” he cautioned. “Otherwise, we risk doing more harm than good.”
As Nigeria grapples with its energy future, Arnergy’s expansion highlights the increasing role of solar in powering Africa’s largest economy.
