Nigerian solar energy startup Arnergy has raised $18 million in Series B funding to accelerate its mission of providing affordable, clean, and reliable energy solutions in a country grappling with an increasingly unreliable grid and skyrocketing fuel prices.
The new funding — comprising a $15 million Series B extension and a $3 million B1 round from the previous year — comes at a time when demand for solar power in Nigeria is at an all-time high. Since the government removed fuel subsidies in May 2023, petrol prices have spiked by nearly 500%, making traditional generators prohibitively expensive for millions of homes and businesses.
Arnergy, founded in 2013 by Femi Adeyemo, has positioned itself as a key player in the transition to cleaner, more cost-effective energy. Initially marketed as a solution for uninterrupted power in a country where grid failures are common, the company’s solar offerings are now seen as a smarter financial decision.
“When we started, solar was about reliability,” Adeyemo said in a conversation with Techcrunch. “Now, we show customers how they can save money every month — whether they’re using petrol, diesel, or even the grid.”
The startup’s flagship product, Z Lite, is a lease-to-own system that allows customers to pay for solar installations over a 5–10 year period. This model has become increasingly attractive as electricity tariffs climb, especially following recent government reforms that tripled costs for customers with the most stable grid access.
“Imagine paying ₦200,000 ($125) a month for power. With Arnergy, that drops to ₦96,000 ($60),” said Adeyemo. “It’s not just about green energy anymore. It’s about saving money.”
Between 2023 and 2024, Arnergy tripled its lease customer base, and it expects that number to grow four to five times by the end of 2025. Although currency devaluation has flattened its dollar revenue, the company is pushing into B2B2C models and exploring expansion into Francophone Africa to grow foreign exchange earnings.
To date, Arnergy has deployed over 1,800 solar systems in 35 states across Nigeria, generating a total of 9 megawatts of solar power and 23 megawatt-hours of battery storage. The newly raised funds, led by CardinalStone Capital Advisers (CCA), will be used to scale installations to more than 12,000 by 2029.
The round also saw participation from Breakthrough Energy Ventures (which led Arnergy’s Series A), British International Investment, Norfund, EDFI MC, and All On.
In a bid to reach more customers, Arnergy is shifting to a partnership-led model, including retail distribution outside Lagos and collaborative deployments with business clients. It is also exploring local debt options to fund large-scale energy-as-a-service projects.
However, a recent policy proposal by Nigeria’s government to ban solar panel imports has raised concern. While the goal is to boost local manufacturing, Adeyemo warns that premature restrictions could cripple an industry still in its infancy.
“We’re advocates for local manufacturing,” he said. “But let’s build capacity before shutting the door on imports. Otherwise, we risk stalling progress and denying millions access to energy they now rely on.”
Arnergy’s latest raise underscores investor confidence in solar as a cornerstone of Nigeria’s energy future — one where affordability, reliability, and sustainability can finally coexist.
