And the company is not just talking anymore—it’s raising millions to back it up.

The Lagos-based solar startup just secured an additional $15 million in funding, bringing its Series B round to a total of $18 million. It’s a big move, but it’s in line with the times. Fuel subsidies are gone. Petrol is now luxury. And businesses that once saw solar as a nice-to-have are now treating it like a lifeline.

Arnergy’s CEO, Femi Adeyemo, said. “When we started the business, we used to position solar as a way to get uninterrupted power, not necessarily to save money. It wasn’t part of a commercial conversation. Now it is, because we can clearly show customers how our systems save them monthly whether using petrol, diesel, or even the grid.”

That’s the reality now. Cost is king. The company’s lease-to-own model, known as Z Lite, is suddenly the most attractive option for SMEs bleeding cash on energy. A customer paying ₦200,000 monthly on diesel can now spend less than half on solar. It’s not idealism—it’s survival.

In just one year, Arnergy tripled its lease customers. And according to Adeyemo, the company is aiming for 4 to 5 times growth again this year. Its revenue in naira is also climbing fast, although forex issues have kept the dollar figures stagnant. That hasn’t stopped the company from expanding B2B partnerships and eyeing markets in Francophone Africa.

So far, Arnergy rolled out over 1,800 solar systems in 35 states, powering schools, hospitals, banks, and homes. With this new funding—led by CardinalStone Capital Advisers and backed by heavyweights like Breakthrough Energy Ventures, Norfund, EDFI MC, All On, and British International Investment—they want to reach over 12,000 installations by 2029.

But there are policy issues, with the Nigerian government recently floating a plan to ban solar panel imports. The goal? Boost local production. The problem? Local manufacturers aren’t ready. Not even close. And Adeyemo is calling it out.

“We’re advocates for local manufacturing. But let’s build capacity before shutting the door on imports. Otherwise, we risk doing more harm than good, both to the industry and to the millions of Nigerians who now rely on solar as their primary energy source.”

He’s not wrong. Nigeria still lacks the infrastructure, capital flow, and policy stability needed to mass-produce solar components locally. Slamming the brakes on imports could paralyse progress right when the industry is picking up steam.

Arnergy knows what it’s up against. Scaling clean energy in a country where policy shifts like sand in the wind isn’t easy. But their model—rooted in resilience and hard math—is working. No fluff. No greenwashing. Just numbers that make sense in a country desperate for alternatives.

And make no mistake, the company is more than a cleantech startup. Arnergy wants to rewrite how Nigeria powers its environs—quietly, cleanly, and without petrol fumes choking the air.

The post Arnergy Raises $18M to Help Nigerians Dump Generators as Fuel Prices Skyrocket appeared first on Tech | Business | Economy.

Renewable energy startups in Africa have cumulatively raised $836.1 million to date and in recent years, the financial sector has shifted towards green investments.

Clean energy spending now surpasses fossil fuel investments at a ratio of 2:1. In 2024, global energy investment is projected to exceed $3 trillion for the first time, with $2 trillion allocated to clean energy technologies and infrastructure. This is a commendable increase from the $1.8 trillion invested in 2023, showing a 17% year-over-year growth. 

In 2023, global investment in renewable energy reached approximately $619 billion, an 8% increase from the previous year. For every dollar spent on fossil fuels, $1.7 was allocated to clean energy, showing a strong global move towards sustainability.

Projections by Bloomberg disclose that Environmental, Social, and Governance (ESG) assets are steadily growing to surpass $53 trillion by 2025, representing more than a third of the anticipated $140.5 trillion in total assets under management.

The green bond market is also well-prepared for strong growth, potentially reaching $2 trillion by 2025, with a compound annual growth rate of 25%.

Added to this, power sector investment in solar photovoltaic (PV) technology is expected to exceed $500 billion in 2024, surpassing all other generation sources combined. This momentum points to a great period in sustainable finance, driven by technological advancements, supportive government policies, and increased environmental awareness.

Green Startups in Nigeria

Nigeria is quickly becoming a top choice in the global green investment sector. Since 2019, Nigerian climate-tech startups have raised over $3.4 billion, with investors having a growing focus on sustainable development.

One good example is Earthbond, a Lagos-based startup founded in 2023 by Chidalu Onyenso. The company addresses Nigeria’s $14 billion off-grid generator market by facilitating access to solar energy through group financing and carbon accounting. 

In October 2024, Earthbond secured $200,000 in pre-seed funding from Madica Ventures, bolstering Nigeria’s green economy.

Other startups include Daystar Power, which has raised $88.5 million to expand its clean energy products and services, Rensource Energy has raised $28.6 million to expand its Power-as-a-Service (PaaS) offerings across Nigeria and West Africa, Arnergy secured $12 million to continue providing reliable solar power solutions for businesses in emerging markets and Beacon Power Services obtained $2.8 million to enhance its energy management software and analytics for utilities.

Again, Ashipa Electric raised $120,000 to develop reliable microgrids in Africa and the Caribbean Islands, Imperium Energy received seed funding of N20 million from the Development Bank of Nigeria (DBN) for its innovative low-cost clean power solutions and SunCulture provides solar-powered water pumps for irrigation, enabling smallholder farmers to access reliable and sustainable energy solutions. In 2024, SunCulture raised $27.5 million to expand its operations.

Challenges and Opportunities

Challenges

Quite alright, we have a commendable view of the green sector, but some challenges could cause limitations:

1. Funding Gaps: Africa requires approximately $277 billion annually to meet its climate goals for 2030.
2. Geopolitical Conflicts: International conflicts and trade disputes disrupt renewable energy supply chains.
3. Regulatory Instability: Inconsistent policies across regions create limitations for investors.
4. Unpredictable Market: Fluctuations in energy prices and financial markets impact the attractiveness of green investments.

Opportunities

On the contrary, the growth of green investments brings lots of opportunities:

1. Innovations in Clean Technology: Innovations in energy storage and efficiency are reducing costs and increasing adoption rates.
2. Supportive Policies: Governments worldwide are implementing fiscal incentives and environmental regulations to promote green investments.
3. Private Capital Flow: Increased private sector involvement is narrowing funding gaps for climate-tech startups.

Economic Impact of Green Investments in Nigeria

Green investments are influencing Nigeria’s economy in the following ways:

1. Economic Growth: The green economy presents an estimated $250 billion in investment opportunities in Nigeria, driving GDP growth.
2. Job Creation: Renewable energy projects can create numerous employment opportunities, from technical roles to research and development positions.
3. Energy Security: Projects like solar farms and microgrids improve electricity access, reducing reliance on diesel generators. For instance, a $750 million World Bank program aims to enhance electricity access for 17.5 million Nigerians.

Again, the Nigerian Green Bond Market Development Programme, launched in 2018, has helped in promoting climate-resilient financial instruments. This initiative laid the foundation for Nigeria’s maiden sovereign green bond in 2017, valued at $26 million.

The Global Context: Investors and Policies

Investors managing over $29 trillion in assets have called for stronger climate policies, emphasizing the necessity of fiscal incentives to support the clean energy transition. 

Nonetheless, there were issues such as a 20% drop in climate tech funding in the first half of 2024, but targets set at the COP28 summit aim to triple renewable capacity and double efficiency by 2030.

Will Green Investments Dominate?

So, the course of green investments appears to be a good one. Global economic growth is projected to increase by 3.3% by 2025 (OECD). Sustainable finance, driven by ESG-linked products and green bonds, is expected to dominate the financial sector.

In Nigeria, the collaboration of government support and private sector innovation will ensure startups in the industry scale beyond the immediate environment.

Green investments are steadily growing and this is bolstered by technological progress, policy support, and environmental consciousness, bringing a unique opportunity for Nigeria to thrive in sustainable development. 

Strategic investments and strong policies will be essential in realising this vision, making green investments a high contributor to economic growth.

The post Will Green Investments Dominate 2025? appeared first on Tech | Business | Economy.

Three companies in the programme’s portfolio—Arnergy, Koolboks, and BURN Manufacturing—have collectively secured $17m million in Foreign Direct Investment (FDI), boosting Nigeria’s efforts to expand access to renewable energy solutions.

These investments will provide energy for more Nigerians, reduce carbon emissions, lead to the creation of 1100 jobs, and support thousands of livelihoods.

The three companies are sustainability trailblazers:

• BURN Manufacturing, at the forefront of clean cookstove innovation, has secured $12 million in carbon investment from Key Carbon Ltd. Their new local assembly facility in Northern Nigeria will bolster distribution efforts of electric cookstoves and biomass stoves across East and Central Africa.
• Arnergy is a leading renewable energy company in Nigeria that specializes in designing and manufacturing technology-enabled solar micro-grid and rooftop solutions. With a recent $3 million bridge financing from a Shell-backed impact investment company, the company has already raised $7.5 million in their Series B fundraise.

• Koolboks is revolutionizing access to refrigeration services, particularly for underserved communities and women entrepreneurs through their solar-powered cooling systems. Their pay-as-you-go technology and accessible business model has attracted a 5-million-euro subsidy from Beyond the Grid Fund for Africa (BGFA), for launch and expansion in Uganda.

Commenting on the development, Jonny Baxter, the British Deputy High Commissioner in Lagos, said:

“The UK Government supports the ambition of the Federal Government’s Renewed Hope agenda: to boost private-sector led economic growth in Nigeria. We’re funding the Manufacturing Africa programme to provide free advisory services to companies raising finance to expand their capabilities and create new jobs in Nigeria. It’s great to see these companies realise their goals with UK support.”

Lolade Alonge, Business Communications Manager at Koolboks stated,

“Manufacturing Africa’s financial advisory support when raising our ‘Series A’ came in very handy and has helped us secure funds that will assist with our expansion plans.”

The advisory services that #ManufacturingAfrica provided to these firms included financial analysis, modeling, commercial diligence analysis and strategic business planning.

To date, Manufacturing Africa has supported 31 Nigerian companies in their journey to raise investment, in sectors including agri-processing, industrial parks, pharmaceuticals, vehicle manufacturing, e-mobility, and renewable energy.

The programme has helped to attract $85 million into Nigeria’s manufacturing sector since 2020.

The post UK Boosts Nigeria’s FDI with $17million Investment in Three Coys appeared first on Tech | Business | Economy.

The fund will help Arnergy in capitalizing on the surging demand for solar energy in Nigeria, caused by rising fuel costs and an unreliable grid.

Founded in 2013, Arnergy has carved a niche as an innovator in the distributed energy sector, serving businesses and communities across diverse industries like telecom, healthcare, and agriculture. 

Since inception, the startup asserts 10x revenue growth in the past five years, with over 7MW of solar PV systems deployed and over 5,000 tonnes of greenhouse gas emissions mitigated.

The recent removal of fuel subsidies in Nigeria sent diesel prices skyrocketing, highlighting the urgent need for cost-effective energy alternatives. Arnergy’s bridge round funding empowers them to address this challenge through a multi-pronged approach.

Offering long-term leases and energy-as-a-service agreements, Arnergy can make solar energy more attractive to businesses, shielding them from the volatility of fuel prices. This financial flexibility allows companies to transition smoothly to clean, reliable energy.

The company partners with mini-grid developers to expand its reach to offer comprehensive solar and battery products and services to a wider audience. This one-stop-shop approach simplifies the process for individuals and communities seeking to embrace renewable energy.

In establishing partnerships with installers and distributors, Arnergy aims to create a strong network that can offer high-quality, affordable solutions across the vast expanse of Nigeria. This ensures wider accessibility and empowers more people to benefit from clean energy.

Femi Adeyemo, Arnergy’s CEO, stated: “With this funding, we can offer affordable solar solutions, empower communities, and create a cleaner future for Nigeria.” This is inline with All On’s vision, whose CEO, Caroline Eboumbou, commended Arnergy’s focus on clean energy solutions and its alignment with All On’s goals. 

Arnergy is preparing for its Series B funding round in Q1 2024, aiming to further expand its operations and deepen its impact.

With plans for sustainability and innovation, Arnergy wants to become Nigeria’s number one renewable energy company, offering hope for a brighter, cleaner future.

The post Arnergy Raises $3 Million Funding to Boost Renewable Energy in Nigeria appeared first on Tech | Business | Economy.