- Arnergy raises $18 million as fuel costs soar and demand for solar rises across Nigeria.
- The lease-to-own solar model gains traction, offering affordable, long-term alternatives to diesel generators.
- Removal of petrol subsidy in 2023 triggers shift toward solar as Nigerians seek cheaper, more reliable power sources.
Nigerian solar company Arnergy has raised $18 million in Series B funding. This year, the company attracted an additional $3 million after investors increased their interest in solar energy due to fuel price hikes and a worsening grid power supply.
Nigeria’s energy landscape shifted dramatically after the government removed its petrol subsidy in May 2023. This decision caused fuel prices to rise by nearly 500%. As a result, many Nigerians now find diesel and petrol generators too expensive to operate.
Energy responded quickly to this shift. The company now focuses on helping customers cut energy costs while maintaining reliable power.
“When we started, we pitched solar for uninterrupted power,” said Arnergy’s leadership. “Now, clients want savings. Our systems deliver both.”
Businesses and households that once relied on fuel-based generators now seek cheaper and more sustainable alternatives. Solar systems have stepped in to fill this demand.
Advanced Energy Ventures, a fund supported by Bill Gates, led Arnergy’s $9 million Series A round in 2019. The fund continues to support Arnergy’s vision and strategy.
Arnergy’s lease-to-own product, Z Lite, has become a core business model. The company has seen growing demand since launching Z Lite after the first Series B tranche in 2023. The plan allows customers to pay fixed monthly fees over five to ten years before owning the system.
Many customers now prefer the Z Lite model. Outright purchases comprised only 25% of Arnergy’s revenue last year, compared to 60% to 70% in 2023. This trend shows a clear shift toward flexible payment options.
Before the subsidy was removed, many Nigerians believed long-term solar leases cost more than running generators. That belief has changed. Rising fuel costs now make solar leases a better deal.
Bloomberg reported that affordability now drives energy choices for many Nigerians. Small businesses, in particular, look for ways to cut operating expenses. Solar systems offer predictable and lower monthly costs.
Arnergy has shifted its message to match these concerns. The company now highlights its technology’s cost-saving benefits alongside its environmental impact. For most customers, solar offers practical savings—not just clean energy.
Nigeria’s energy sector continues to evolve rapidly. Rising fuel prices, unreliable grid supply, and policy changes are driving more people toward solar power.
Arnergy plans to use its new funding to expand access to solar in underserved communities. The company also aims to grow its lease-to-own offering and reach more users nationwide.
Arnergy is helping Nigerians move away from polluting, expensive fuel generators by offering reliable and affordable clean energy. The company’s growth reflects a broader trend: more Nigerians now see solar as a wise financial choice, not just a green one.