The demand for solar energy in hungry nigerine by electricity has increased in the last decade thanks to the deterioration of network reliability and increased fuel costs. This is attracted to the investor’s interest for Arnergy, a clean starting meeting that is needed. The company just raised an additional $ 15 million in Serie B (led by a $ 3 million B1 round last year), bringing its total round to $ 18 million.
This increase in the demand for solar systems follows significant policy shifts, especially the abolition of Nigeria’s decade fuel subsidy in May 2023 (Government Decision-Defined-completed its practice to cover the gap between global and local fuel prices).
Since then, gasoline prices have danced nearly 500%, making energy generators, once seen as the most affordable alternative to unreliable network power and solar systems despite environmental risks, much more expensive to execute.
Arnergy’s field has changed over time. “When we started the business, we positioned the sun as a way to get uninterrupted power, not necessarily to save money. He was not part of a trading conversation,” the founder and CEO Adeyemo told Techcrunch. “Now it is, because we can clearly show customers how our systems save them every month if the use of gasoline, oil, or even the network.”
Adeyemo launched Arnergy in 2013 to provide solar systems for houses and businesses in sectors such as hospitality, education, finance, agriculture and health care.
What began as a sustainability game is now a cost savings strategy by changing the adoption economy for cleaning supported by Bill Gates’ Breakthrough Energy Ventures (Firm LED Arnergy’s 9 million Series A.)
Increased rental approval
This adoption is clearer in the company’s rental product, Z Litewhich became a fundamental focus after Arnergy’s first series B tranche last year.
While direct purchases comprised 60% to 70% of revenue in 2023, they accounted for only 25% of sales last year. On the other hand, the ownership rent, where clients pay fixed monthly fees over 5 to 10 years before they own the system, has earned more withdrawals.
One reason for this change is affordability when compared to electricity tariffs. Until recently, many people watched long -term rents more expensive than running oil or gas generators. But with oil prices that increase after subsidy and network tariffs that climb-especially after a new government policy last April that tripled the costs of electricity consumption for customers with the most sustainable to–to-owner sun is becoming popular among clients, says Adeyemo.
“Imagine paying 200,000 ₦ ($ 125) every month for energy. With our product, which falls to 96,000 ₦ ($ 60). Over five years, it is thoughtless what you will save,” CEO said. He added that many existing clients are returning to double their solar capacity or change completely out of the network as a result.
Arnergy tripled the base of its rental customers between 2023 and 2024 and expects to grow it 4-5X this year. Naira’s income is adjacent to the circumstances and are on the right track to quadruple by the end of the year.
Revenue from the dollar, on the other hand, has remained flat due to currency depreciation, but Adeyemo said the company is building income from FX through B2B2C partnerships labeled in the dollar and possible expansion in Francophone Africa.
Scaling between another government policy
So far, Arnergy has placed over 1,800 systems in 35 Nigerian states, reaching solar 9MWP and 23MWh battery storage.
Arnergy plans to use its new funds made the Nigerian Private Capital Capital Capital Advizisers (CCA) firm install more than 12,000 systems by 2029. Breakthrough Energy Ventures as well as British International Investments, EDFI MC, and all participated in rounds.
But hitting this target requires a strategic shift. For almost a decade, Arnergy treated sales at home. Now, it is adopting a partnership -driven model with business customers and physical retail stores outside Lagos to reach more customers in the hungry market in Nigeria.
Lagos-based Cleantech is in talks to increase local banks’ and DFI additional debt to support these projects, including energy-like (EAA) solutions for multinationals, says Adeyemo.
However, while Arnergy prepares to escalate, a proposed policy can threaten its momentum.
Last month, the Nigeria government announced plans to ban solar panel imports to increase local production. The measure has withdrawn reactions from stakeholders that argue that the internal capacity is far from ready.
Adeyemo agrees with the goal, but not access. He warned that a premature ban could be stuck to an industry that is only leaving the ground.
According to CEO, Nigeria should create an environment with the right infrastructure, policy stability and access to capital so that local factories can grow over the next 3 to 5 years. Only after that, the country should begin to think about the stages of imports.
“We are advocates for local production. But let’s build capacity before closing the door to imports. Otherwise, we risk doing more harm than good, both to the industry and for the millions of Nigerians now relying on the solar as their main energy source,” he noted.
