The demand for solar energy has increased in the advanced Nigeria in the past decade thanks to the increased reliability of the network and the high fuel costs. This attracts the interest of the investor ARNERGYThe starting starting technology that needs. The company just ranked $ 15 million (moreover 3 million dollars B1 round Last year), where the total of the tour reached 18 million dollars.
This is followed by increased demand for solar energy systems, major transformations in politics Remove fuel subsidies for decades from Nigeria In May 2023 (government resolution – it has long discussed its practice of covering the gap between global and local fuel prices).
Since then, gasoline prices have jumped approximately 500 %, making energy generators, which are once seen as a more affordable alternative to unreliable network power and solar systems despite environmental risks, much more expensive for operation.
The Arnergy stadium has changed with the times. “When we started work, we used to put solar energy as a way to get power without interruption, not necessarily to save money. It was not part of a commercial conversation,” the founder and CEO Vimi Edmo He said Techcrunch. “Now, because we can clearly explain customer how our systems save them monthly, whether they are the use of gasoline, diesel, or even the network.”
Adeyemo Arnergy was launched in 2013 to provide solar energy systems for homes and companies across sectors such as hospitality, education, finance, agriculture and health care.
What started as a flexibility theater is now a strategy to provide costs to change the adoption economies of clean technology supported by Bill Gates Breakthrough Energy Ventures (The company led Arnergy series of $ 9 million In 2019.)
Rental contract to increase adoption
This adoption made clear in the company’s producer to the cold, Z LiteWhich has become a key focus The first arnergy slide b last year.
While explicit purchases consisted from 60 % to 70 % of revenues in 2023, it was only 25 % of sales last year. On the other hand, it gained the rent to join, as customers pay a fixed monthly fee for more than 5 to 10 years before the system has a more traction.
One of the reasons for this change is the ability to afford costs compared to the electricity tariff. Until recently, many people have seen long -term rental contracts more expensive than operating diesel or gasoline generators. But with the high rates of diesel in the post-removal stage and climbing the network tariff-especially after a new government policy last April Electricity consumption costs have multiplied three times for customers who have the most stable energyAdeyemo says, solar energy that dates back to gratitude has become common among customers.
The CEO said: “Imagine paying 200,000 ₦ (about 125 dollars) every month for power. With our products, it decreases to 96,000 ₦ (about 60 dollars). For a period of five years, it is something you will not save.” He added that many current customers are due to double their solar capacity or to replace the entire network as a result.
Arnergy doubles the base of the rental customer between 2023 and 2024 and is expected to grow 4-5X this year. Al -Nira’s revenues increased accordingly, and it was on the right path to the Quartet by the end of the year.
On the other hand, the dollar revenues remained flat due to the reduction in the value of the currency, but Adimo said that the company is building revenues through the b2B2C partnerships in the dollar and the potential expansion in French Africa.
Expansion amid another government policy
To date, Arnergy has published more than 1,800 systems in 35 Nigerian states, totaling 9 megawatts of solar energy and 23 megawatts of battery storage.
Arnergy plans to use its new financing led by CardinAstone Capital Advisers (CCA) from the Nigerian private stock company to install more than 12,000 systems by 2029.
But hitting this goal requires a strategic shift. Almost a decade ago, Arnergy has dealt with sales at home. Now, it is adopted by a model moved by partnership with businessmen and material retail outlets outside Lagos to reach more customers in the advanced market in Nigeria.
Adeyemo says that Lagos -based Cleantech is in conversations to collect additional local debt from banks and DFIS to support these projects including energy solutions as an EAAS service for multinational companies.
However, with Arnergy’s willingness to size, the proposed policy can threaten its momentum.
Last month, the government of Nigeria Solar panel import plans have announced To enhance local manufacturing. The move extracted a violent reaction from the stakeholders who argue that the local ability is not ready.
Adeyemo agrees to the goal, but not the approach. And he warned that the early ban can stop an industry that only launches from the ground.
According to the CEO, Nigeria needs to create an environment with appropriate infrastructure, policy stability, and reach capital so that local factories can increase over the next 3 to 5 years. Just after that if the country begins to think about gradually getting rid of imports.
“We are calling for local manufacturing. But let’s build the ability before the door is closed on imports. Otherwise, we risk harming more benefit, both for industry and millions of Nigerians who are now dependent on solar energy as a primary energy source.”
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