The demand for solar energy in Nigeria with hungry power has increased over the past decade due to the deterioration of the reliability of the network and the growing fuel costs. This is an excited interest in the investor ArnergyMeeting with a clean technological startup. The company has just collected an extension of the B series in the amount of $ 15 million (in addition to the B1 round value $ 3 million last 12 months), which supplies the sum to the round to $ 18 million.
A rapid increase in demand for solar systems is in line with significant changes in politics, in particular Removal of fuel subsidies in Nigeria In May 2023 (government decision – a long debate – ended the practice of covering the gap between global and local fuel prices).
Since then, gasoline prices have increased by almost 500%, which makes energy generators, once perceived as a cheaper alternative to incredible energy of mesh and solar systems despite environmental threats, much dearer to start.
The Arnergy combination has modified with time. “When we started operating, we positioned Solar as a way to get uninterrupted energy, not necessarily to save money. It was not part of a commercial conversation”, founder and director general Femi Adeyemo Techcrunch said. “Now it is because we can clearly show customers how our systems save them every month, regardless of whether the use of gasoline, diesel and even grid.”
Adeyemo launched Arnergy in 2013 to provide solar systems with homes and firms in various sectors, such as hospitality, education, finance, agriculture and healthcare.
What began as a resistant game is now a savings strategy, changing the economy of adoption for pure technology supported by Bill Gates breakthrough energy projects (The company was running Arnergy’s $ 9 million A series in 2019).
Increasing the acceptance of the lease to property
This adoption is the most clear in the company’s rental product, which became the major goal after the first tranches of the Arnergy B series last 12 months.
While direct purchases accounted for 60% to 70% of revenues in 2023, they accounted for only 25% of sales last 12 months. On the other hand, the lease in which customers pay everlasting monthly fees inside five to 10 years before having the system, gained greater adhesion.
One of the reasons for this variation is price accessibility compared to electricity tariffs. Until recently, many people considered long -term leases as dearer than conducting diesel or gasoline generators. But with diesel prices rising after removal and network tariffs-especially after the recent government policy in April last 12 months which tripled the costs of electricity consumption for clients with the most stable power -The lease is becoming popular among customers, says Adeyemo.
“Imagine that you pay 200,000 (~ USD 125) for energy every month. Thanks to our product it drops to 96,000 ₦ (~ 60 USD). In five years it is obvious what you will save,” said the general director. He added that many existing customers are coming back to double their sun capability or, as a result, completely disable the network.
Arnergy Potro was the rental base in 2023–2024 and expects 4-5x to increase this 12 months. Revenues from Naira have increased accordingly and are well on its way until the end of the 12 months.
On the other hand, the dollar revenues remained flat due to currency devaluation, but Adeyemo said that the company is building FX revenues through B2B2C partnerships denominated in dollars and potential expansion in Francophone Africa.
Scaling among one other government policy
Until now, Arnergy has implemented over 1,800 systems in 35 Nigerian states, with a total value of 9 MWP and 23 MWH of the battery magazine.
Arnergy plans to use a recent funds run by the Nigerian company Private Equity Cardinalstone Capital Advisers (CCA) for the installation of over 12,000 systems until 2029. Breakthrough energy projects, as well as British international investments, Norfund, MC and everyone participated in the round.
But achieving this goal requires a strategic change. For almost a decade, Arnergy was selling. Now he adopts a model related to partnership with business clients and physical shops outside Lagos to reach more clients on the market in Nigeria.
Adeyemo says that Cleantech based in Lagos is talking about increasing the additional local debt from banks and DFI in order to support these projects, including Energy-AS-A-Service (EAAS) solutions for international.
However, when Arnergy is preparing for scaling, the proposed policy can threaten her rush.
Last month the Nigerian government Plans to prohibit the import of the solar panel have been announced To increase local production. This move attracted interested parties who claim that national ability is far from readiness.
Adeyemo agrees with the goal, but not an approach. He warned that the premature ban could stop the industry that was just disappearing.
According to CEO, Nigeria must create an environment with appropriate infrastructure, policy stability and access to capital so that local factories can increase over the next three to five years. Only then should the country start pondering about withdrawing imports.
“We are in favor of local production. But let’s build abilities before closing the door to import. Otherwise, we risk causing more damage than good, both for the industry and millions of Nigerians who are now relying on a sunny source of energy,” he noted.