The latest investment was led by CardinalStone Capital Advisers, with support from Breakthrough Energy Ventures, British International Investment, Norfund, EDFI MC, and All On.

The funds will support Arnergy’s plan to install more than 12,000 solar energy systems by 2029.

Founded in 2013 by Femi Adeyemo, Arnergy is responding to a surge in demand for solar power across Nigeria.

The demand has been driven by ongoing issues with the national power grid and rising fuel prices, especially after the government removed petrol subsidies in May 2023.

With fuel costs for generators increasing by almost 500%, more Nigerians are turning to solar as a cheaper and more reliable option.

To make solar energy more accessible, Arnergy now offers lease-to-own solar systems under its Z Lite brand.

This shift has changed customer behavior — in 2022, most sales were outright purchases, but now, most users prefer the lease model.

These customers are saving money through fixed monthly payments that are lower than what they would spend on diesel or unreliable electricity supply from the grid.

So far, Arnergy has deployed more than 1,800 solar systems in 35 states across Nigeria.

These systems provide a combined capacity of 9 megawatts of solar power and 23 megawatt-hours of energy storage.

The company plans to grow further by working with retail partners and offering energy solutions to large companies.

It is also exploring expansion into Francophone West Africa and considering local debt financing to fund its plans.

Despite its growth, the company is concerned about a proposed government policy to ban the importation of solar panels.

While Arnergy supports local production, Adeyemo cautions that such a ban could hurt the sector if local manufacturers are not yet ready to meet demand.

“We support local manufacturing,” said Adeyemo. “But if imports are banned before we have enough capacity locally, it could damage an industry that many Nigerians now depend on.”