- d.light has secured $7.4 million from Chapel Hill Denham for off-grid solar projects.
- The fund is targeted at low-income households.
Solar products company d.light has successfully secured a groundbreaking financing facility of $7.4 million from Chapel Hill Denham’s Nigeria Infrastructure Debt Fund (NIDF). This significant investment is poised to supercharge the expansion of d.light’s Pay-Go offering on off-grid solar projects, further closing energy access gaps across the country.
The financing arrangement, crafted and sponsored by African Frontier Capital, leverages future customer payments to serve as a guarantee for the loan. This innovative structure not only provides financial support but also establishes a flexible and scalable solution to propel the reach of off-grid solar access.
Nick Imudia, the CEO of d.light, has expressed enthusiasm about the partnership, stating, “This collaboration creates opportunities for low-income families in Nigeria to access our life-changing solar products affordably and sustainably. We are thrilled to have Chapel Hill Denham as a partner who shares our commitment to both commercial success and positive social impact.”
Bolaji Balogun, Chief Executive Officer of Chapel Hill Denham, also commented on the transaction. He said: “This transaction signifies a pivotal stride in sustainable infrastructure investment in Nigeria, setting a transformative precedent for the renewable energy sector. By pioneering local currency securitization for the financing of solar home systems and essential solar-powered household utilities in Nigeria, Chapel Hill Denham is catalyzing innovation in the renewable energy sector, advancing sustainable development, empowering communities, and reshaping Nigeria’s infrastructure landscape for a brighter, more sustainable future for all.”
Note that according to the World Bank’s 2022 Off-grid Solar Market Trends Report, 586 million people in the sub-Saharan African region are not connected to the grid – with the largest number being in West Africa, where 213 million are without a link. Meanwhile, 182 million people around the continent have unreliable grid access.