Femi Adeyemo and Kunle Odebunmi established the startup in 2013, specializing in distributed renewable energy products and services for both businesses and households. Nigeria serves as its primary market, with intentions to maintain services across the nation’s 36 states through collaborations with mini-grid developers.
Arnergy prides itself on having installed over 2 MW of electricity for more than 2,000 customers. In 2019, it successfully secured $4 million in debt financing from both local and foreign lenders, including Nigeria’s Bank of Industry. The year 2021 witnessed Arnergy’s inclusion in Bill Gates’s Breakthrough Energy Ventures Top 5 Cleantech list. During an interview, CEO Adeyemo emphasized that Arnergy’s pursuits extended beyond mere fundraising; the company awaited specific triggers, such as the elimination of fuel subsidies, nearing grid parity based on grid prices, and diesel costs. Notably, the startup’s last fundraising endeavor occurred in 2019, with a steadfast commitment to capital efficiency.
Adeyemo also acknowledged the surge in demand for solar systems since 2019, a period when many Nigerians initially deemed them economically impractical. Additionally, he remarked on the global decline in solar panel and lithium battery prices, though noting that they would have been significantly lower in Nigeria without the impact of exchange rate fluctuations. Recent times have seen heightened fluctuations in foreign exchange rates in the country, with the Naira exceeding ₦1500 per $1.
Arnergy, known for its 75% outright sales model rather than leases since inception, currently expresses bullishness towards leases.
Nigeria’s unstable grid situation has spurred interest in alternatives, notably evidenced by a power output decline to 93.5% in late 2023, resulting in a blackout. The off-grid option gains prominence, with Nigeria recording the highest solar sales in Q2 2022, constituting 78% of all sales in West Africa. Notably, Nigeria’s solar product sales soared by 450% between 2017 and 2022.
Source: Techpoint