Nigerian cleantech startup Arnergy has secured $3 million in fresh funding led by Shell-backed impact investor All On. This bridge round comes five years after the company's $9 million Series A round, which saw participation from prominent names like Bill Gates' Breakthrough Energy Ventures.
Founded in 2013, Arnergy offers customized energy systems to address unreliable grid access, serving businesses and households across diverse sectors. They've already installed over 7MW of solar PV systems and 20MW of lithium battery storage, impacting over 2,000 clients.
Despite progress, Nigeria's limited grid capacity leaves many without reliable electricity. Reliance on fossil fuel generators poses health and environmental concerns. Recent fuel subsidy removal and rising diesel prices further highlight the need for cost-saving energy alternatives.
Arnergy CEO Femi Adeyemo emphasizes their focus on capital efficiency and waiting for market triggers like fuel subsidy removal and grid parity. He notes that solar is now cost-competitive with grid power, driven by changes in pricing for petrol, diesel, and grid electricity.
Historically, Arnergy focused on outright sales. However, with significantly higher diesel prices, long-term leases are becoming more attractive. Adeyemo explains that the monthly expense of solar is now comparable to petrol or diesel, making leases more viable compared to the past.
Arnergy plans to leverage this trend, focusing on lease options and expanding service provision across all 36 Nigerian states through partnerships with min-grid developers. Additionally, they are preparing for a Series B funding round to further expand operations and accelerate renewable energy adoption within and beyond Nigeria.
All On CEO Caroline Eboumbou commends Arnergy's innovative solutions, commitment to sustainability, and social impact, highlighting their alignment with All On's goals. This investment reaffirms their confidence in Arnergy's ability to scale and accelerate clean energy adoption.
Play audio
No comments