Arnergy Secures $18M to Expand Solar Access in Nigeria Amid Energy Crisis
Surging Demand for Solar Solutions in Nigeria
Nigeria’s worsening grid reliability and skyrocketing fuel costs have driven unprecedented demand for solar energy over the past decade. This surge has positioned clean tech startup Arnergy as a key player in Nigeria’s energy transition, attracting significant investor interest.
The company recently closed an \(18 million Series B round, comprising a \)15 million extension following a $3 million B1 round in 2024.
Fuel Subsidy Removal Accelerates Solar Adoption
The energy landscape shifted dramatically when Nigeria eliminated its decades-old fuel subsidy in May 2023. The policy change triggered:
- 500% increase in petrol prices
- Higher operating costs for traditional generators
- Renewed focus on solar as a cost-effective alternative
“Initially, we marketed solar as uninterrupted power,” explained CEO Femi Adeyemo. “Now we demonstrate clear monthly savings versus petrol, diesel, or grid power.”
Lease-to-Own Model Drives Growth
Arnergy’s Z Lite lease-to-own program has become central to its strategy, with notable trends:
- Lease sales grew from 30-40% to 75% of revenue
- Customers save ~50% versus traditional power costs
- Customer base tripled from 2023-2024 with 4-5x growth projected
“Paying ₦96,000 ($60) monthly versus ₦200,000 ($125) makes solar an obvious choice,” Adeyemo noted, adding that many customers are expanding their solar capacity or going completely off-grid.
Expansion Plans and Challenges
With backing from Bill Gates’s Breakthrough Energy Ventures and other investors, Arnergy has:
- Deployed 1,800+ systems across 35 states
- Installed 9MWp solar capacity with 23MWh battery storage
- Plans to install 12,000+ systems by 2029
The company is transitioning from direct sales to partnership-driven distribution while exploring:
- Energy-as-a-Service solutions for multinationals
- Expansion into Francophone Africa
- Local debt financing for projects
Policy Concerns Loom
A proposed ban on solar panel imports raises concerns. While supporting local manufacturing goals, Adeyemo cautions:
“We need 3-5 years to build domestic capacity before restricting imports. Premature action could harm both the industry and energy access.”
Arnergy’s growth reflects Nigeria’s urgent need for reliable, affordable power solutions as the country navigates its energy transition.
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