Nigerian Solar Startup Arnergy Raises $18M in Extended Series B

L-R: Dr. Bunmi Adekore (Partner Breakthrough Energy Venture), Bill Gates, and Femi Adeyemo (Arnergy CEO)

Arnergy, a Nigerian cleantech startup focused on distributed solar energy solutions, has raised an additional $15 million as an extension of its Series B round, adding to the $3 million it secured in an earlier tranche in 2023. This brings the total Series B funding to $18 million.

The latest investment round was led by CardinalStone Capital Advisers (CCA), a Nigerian private equity firm. Other participants include Breakthrough Energy Ventures — which led Arnergy’s $9 million Series A round in 2019 — alongside British International Investment (BII), Norfund, EDFI Management Company (EDFI MC), and All On, an off-grid energy impact investor backed by Shell.

The capital injection will be deployed to support Arnergy’s ambitions to install more than 12,000 additional solar energy systems by 2029, up from the 1,800 it has already deployed across 35 Nigerian states. These systems currently account for a combined 9 megawatts peak (MWp) of solar capacity and 23 megawatt-hours (MWh) of battery storage.

A significant portion of the new capital will also fund the scaling of Arnergy’s lease-to-own product, Z Lite, which has become central to its commercial model. The startup is shifting from a fully in-house sales strategy to a partnership-driven model — including collaborations with retail outlets and B2B2C channels — to increase accessibility outside Lagos. Additionally, the company is in discussions with local banks and Development Finance Institutions (DFIs) to raise debt that will finance energy-as-a-service (EaaS) solutions for large enterprises and multinational customers.

However, Arnergy’s scaling plans face a looming policy threat: the Nigerian government’s proposal to ban imported solar panels. While intended to promote local manufacturing, critics argue — and CEO Femi Adeyemo agrees — that the policy is premature given Nigeria’s inadequate local capacity. A rushed implementation could destabilize the sector and hinder progress on electrification.

Source: Launch Base Africa