• Tuesday, May 21, 2024
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Arnergy secures $3m for solar expansion in Nigeria

Nigeria solar homes seen as $2bn annual opportunity

Arnergy, a Nigerian startup specialising in distributed renewable energy products and solutions, has secured $3 million in additional funding. The bridge financing was provided by All On, an off-grid energy impact investment firm backed by Shell.

This new investment arrives five years after Arnergy, known for offering solar power systems to both homes and businesses, raised a $9 million Series A round in 2019. All On was a participant in this round as well, alongside other investors such as Bill Gates’ Breakthrough Energy Ventures, ElectriFI, and Norfund.

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Launched in 2013 by founders Femi Adeyemo and Kunle Odebunmi, Arnergy embarked on its journey to provide sustainable energy solutions, aiming to supply clean and dependable energy to both businesses and homes.

The company designs its energy systems specifically to address the challenges of intermittent power supply and grid unreliability, empowering clients across various sectors—including hospitality, education, finance, agriculture, and healthcare—to adopt and implement cost-effective and reliable distributed energy systems.

With the recent removal of fuel subsidies, escalating diesel prices, and rising stringent macroeconomic conditions, the imperative for energy cost savings has never been more critical for sustaining businesses and enhancing the quality of life for Nigerians.

Caroline Eboumbou, the chief executive officer of All On, who commended Arnergy’s unwavering dedication to clean energy solutions said, “We are proud of our partnership with Arnergy over the past years. Our investments into Arnergy have supported our goal to empower communities and create a cleaner future for Nigeria.

“Arnergy exemplifies the impact we strive to achieve at All On, innovative solutions and unwavering commitment to sustainability. This investment reaffirms our confidence in their ability to scale their operations and accelerate the adoption of clean energy in Nigeria and beyond.”

All On said it is committed to bringing innovative investment that will increase access to commercial energy products and services for the under-served and un-served off-grid energy market in Nigeria.

“The successful closure of this bridge round underscores Arnergy’s unwavering commitment to providing, one-stop-shop products and services to Nigerians through Mini-Grid Developers,” said Femi Adeyemo, Founder and CEO of Arnergy.

According to the Arnergy helmsman, the company is working to accelerate the launch of its channel partnerships, installer, and distributor network across Nigeria with quality products and services at market-driven price points.

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“With the support of our investors, particularly All On, we are well-positioned to capitalize on the increasing demand for solar systems and drive positive impact at scale,” he said.

Arnergy is gearing to raise its Series B round, targeted for closure in the first quarter of 2024. This next funding phase will enable the company to scale its operations further, deepen its impact, and catalyze the adoption of quality, affordable renewable energy products and solutions within and beyond Nigeria’s borders.

Arnergy has been offering sustainable renewable energy solutions since 2013 to address the pervasive energy reliability challenges across emerging markets.