Bill Gates-Backed Arnergy to Expand Solar Access in Nigeria with $18M as Demand Surges
Lagos, Nigeria – April 14, 2025
Arnergy, a Nigerian cleantech startup revolutionizing solar energy access, has secured $18 million in fresh funding to scale its operations amid soaring demand for reliable power in Nigeria. The investment, a Series B extension led by CardinalStone Capital Advisers and backed by Bill Gates’ Breakthrough Energy Ventures, British International Investment, Norfund, EDFI MC, and All On, brings Arnergy’s total Series B round to $18 million, following a $3 million bridge in 2024. With Nigeria’s grid faltering and fuel costs skyrocketing, Arnergy’s solar systems are lighting up homes and businesses, but a looming policy threat could dim its momentum.
Founded in 2013 by Femi Adeyemo and Kunle Odebunmi, Arnergy has already deployed over 1,800 solar systems across 35 Nigerian states, delivering 9 MWp of solar capacity and 23 MWh of battery storage. The new funds will fuel an ambitious goal: installing 12,000 systems by 2029, targeting sectors like hospitality, education, and healthcare. “We’re shifting to partnerships—retail outlets, business clients—to reach deeper into Nigeria’s power-starved market,” Adeyemo told TechCrunch. Their lease-to-own model, Z Lite, now drives 75% of sales, letting customers pay monthly over 5–10 years, a shift from 2023’s 60–70% outright purchases. This affordability edge is key as petrol prices, up 500% since the 2023 fuel subsidy removal, make generators costlier than solar.
The demand surge is undeniable. Nigeria’s grid supplies just 4,000 MW for 220 million people—less than a tenth of what’s needed—leaving 84% of urban households reliant on polluting generators. Arnergy’s IoT-enabled systems, with real-time monitoring via its Solarbase software, offer a cleaner, cheaper alternative. “Solar’s not just resilience now; it’s a cost-saver,” Adeyemo said, noting that lithium battery costs have dropped to $250 per kWh from $400 in 2023. Bill Gates, who visited Arnergy’s Lagos facility in 2023, called it a “huge energy transition opportunity,” praising its displacement of diesel generators.
But a storm looms. Last month, Nigeria’s government proposed banning solar panel imports to boost local manufacturing—a move Adeyemo warns could cripple the industry. “Domestic capacity isn’t ready,” he said, urging a 3–5-year buildup of infrastructure and capital first. Stakeholders echo his concern, per TechCrunch, arguing a premature ban risks choking solar adoption for millions. On X, users debate the policy: “Local jobs sound great, but don’t kill solar now,” one wrote, while another backed the ban, saying, “Nigeria must build its own.”
Despite the hurdle, Arnergy’s backers are bullish. “Arnergy exemplifies sustainability and impact,” said All On’s Caroline Eboumbou. With Breakthrough Energy’s heft—Gates’ fund counts Jeff Bezos and Jack Ma among its billionaire investors—the startup’s poised to reshape Nigeria’s energy landscape. As Adeyemo eyes debt financing to fuel energy-as-a-service projects, Arnergy’s mission is clear: bring light to a nation in the dark, one panel at a time.