Off-grid energy investor All On signs $1m deal with Salpha Energy
All On, a Shell-funded impact investment firm has announced on Friday, a $1 million investment in Salpha Energy Nigeria to scale the company’s solar home systems distribution business, which is focused on bottom-of-the-pyramid customers in rural and remote areas, peri-urban areas, including the Niger Delta.
The investment will be used to increase Salpha’s inventory and product range, Expand sales channels and customer service infrastructure and test more flexible Pricing models to sustainably manage rural customers in states across Nigeria including in Niger Delta.
Goziem Okubor, senior investment associate, All-on energy, said the investment will provide Salpha Energy with the inventory needed to supply its expanding network of distributors and also give the company a competitive advantage in growing market demand for a solar home system.
“We are thrilled about this investment which is the continuation of a journey and would provide Salpha inventory needed to supply its expanding network of distributors and a platform to cement its competitive advantage and respond to growing market demand for Solar Home Systems,” said Okubor.
The deal comes on top of a $50,000 investment Salpha received as one of the winners of the USADF/All On Off-Grid Energy Challenge in 2020.
The funds were used to test Pay-As-You-Go contracts for Niger Delta customers.
This development will enhance a highly scalable opportunity by speedily deploying power assets to households in Nigeria and facilitate the adoption of a sustainable power service payment culture within the Niger Delta and beyond.
All On works with partners to increase access to commercial energy products and services for unserved and underserved off-grid energy markets in Nigeria.
With a particular emphasis on the Niger Delta, All On makes investments in off-grid energy solutions such as solar, wind, hydro, biomass, and gas technologies used by access-to-energy companies, both foreign and domestic, that supplement available grid power across Nigeria and contribute to closing the country’s significant energy gap.
The company has an active distributor network of over 350 individuals, cooperatives, and traders nationwide with key partnerships with payment collection enablers such as InfiBranches, Paga, and Interswitch.
Similarly, Sandra Chukwudozie, CEO and founder of Salpha Energy Limited, said the investment will help deliver on the company’s strategy to provide products for their customers.
“We are very excited about this support from All On which is an indication of their growing confidence in our vision. This additional support will allow us to deliver on our strategy to provide products for customers across the range of their developing energy needs,” said Chukwudozie.
Salpha Energy provides clean, affordable solar home energy systems that prioritizes reaching end-users at the bottom of the pyramid. Solar energy, according to the company, will help to create a cleaner and more sustainable future for everyone through innovative, quality-conscious, long-lasting products.