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 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.