Billionaire Bill Gates-backed Company to Expand Solar Access in Nigeria With $18m Amid Ban by FG
- A Bill Gates-backed Nigerian solar startup, Anergy, is moving to invest about $18 million to provide solar access in Nigeria
- The company recently secured $15 million in funding in addition to the $3 million it raised earlier to make clean energy affordable in Nigeria
- The company disclosed that its lease-to-own system allows customers to use its systems for a five or 10-year period while paying in instalments
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Following the surge in demand for solar energy in Nigeria, Anergy, a clean tech startup, is rushing to meet that need.
The company just raised about $15 million in Series B funding in addition to the $3 million it raised last year.
Source: Getty Images
Anergy moves to provide solar access with $18m
Anergy is pouring funds to provide clean power in Nigeria as the demand for solar-powered energy grows after the government removed the fuel subsidies.
Since the subsidy removal, petrol prices have soared 500%, making power generators unattractive due to high fuelling prices.
Anergy, a Nigerian startup, is racing to take up a large chunk of the clean energy market by providing alternatives to unreliable power via solar systems.
According to Anergy’s CEO, Femi Adeyemo, the company began by positioning solar as an alternative to obtain uninterrupted power, not to save money.
He said the company now strives to show customers how its systems can save money, whether by using petrol, diesel, or even the grid.
Adeyemo started Anergy in 2013 to provide solar systems to homes and businesses in areas such as hospitality, education, finance, agriculture, and healthcare.
The company has now attracted funding from Bill Gates, Microsoft founder through Breakthrough Energy Ventures, leading Anergy to a $9 million Series A in 2019.
Anergy introduces lease-to-own
TechCrunch reports that the adoption is the clearest of the company’s lease-to-own product, Z Lite, which is a core focus following its first Series funding in 2024.
According to reports, while outright purchases comprise 60% to 60% of revenue in 2023, they accounted for about 25% of sales last year.
However, lease-to-own, where customers pay fixed fees over five to 10 years before owning the system has become more attractive.
Adeyemo believes that one of the reasons for the change is affordability relative to electricity tariffs.
Many people have seen long-term leases as more expensive than running diesel or petrol generators.
However, with rising fuel prices and increased electricity tariffs, which tripled costs, lease-to-own solar is more popular among customers.
Anergy quadruples revenue amid challenges
Reports say Anergy tripled its lease customer base between 2023 and 2024 and expects four to five-fold growth this year.
Also, Naira revenue has surged and is on track to quadruple sales by the end of 2025.
Dollar revenue, however, has remained tepid due to currency devaluation.
Adeyomo said the firm is building FX revenue via dollar-denominated B2B2C partnerships and potential expansion into other African countries.
Anergy, however, is facing a new government policy, which has banned the import of solar panels into the country.
Source: Getty Images
It is unclear how the firm intends to combat the new challenge and continue to provide cleaner and affordable power to its customers.
NERC fines electricity distribution company for overbilling
Legit.ng earlier reported that Abuja Electricity Distribution Company (AEDC) has been fined ₦1.69 billion by the Nigerian Electricity Regulatory Commission for overcharging customers.
As per NERC's statement, the fine is due to AEDC's disregard for the commission's previous order restricting projected billing for power users.
The fine was specified in the official "Order NERC/2024/114" that the commission issued.
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Source: Legit.ng
