Nigerian renewable energy startup Arnergy has raised $18 million in Series B funding to broaden its solar power footprint across the country. The round includes a $15 million injection following an earlier $3 million B1 tranche, signaling strong investor confidence in Arnergy’s business model. This funding comes at a pivotal time as demand for off-grid solar energy intensifies in Nigeria due to growing fuel costs and the country’s unreliable electricity grid.
High-Profile Backing Reflects Growing Cleantech Interest
The Series B round was led by CardinalStone Capital Advisers (CCA), with significant participation from Breakthrough Energy Ventures, a fund backed by Bill Gates. Additional support came from British International Investment, Norfund, EDFI MC, and Nigerian impact investor All On. The caliber of investors signals a growing appetite for climate-smart solutions in emerging markets and highlights Nigeria’s potential as a key solar market.
Fuel Subsidy Cuts Accelerate Solar Adoption
In 2023, Nigeria scrapped a longstanding fuel subsidy, triggering a sharp rise in petrol prices—up nearly 500%—and rendering fuel-powered generators increasingly unaffordable. This shift has dramatically altered the energy equation for both households and businesses, making solar energy a more attractive and economically viable option. Arnergy has quickly adapted, positioning its solar offerings as a direct cost-saving alternative rather than just a backup power source.
From Backup to Essential Energy Solution
Arnergy’s CEO and founder, Femi Adeyemo, noted that the company's value proposition has evolved in line with Nigeria's energy challenges. “We used to sell solar as a way to keep the lights on. Now we sell it as a way to save money,” he said, underlining the growing practicality of solar solutions for everyday use. The company’s solar systems are now widely seen as essential infrastructure for reliable, long-term energy access in Nigeria.
Investor Confidence in Arnergy’s Model
CardinalStone Capital Advisers, the lead investor, cited Arnergy’s operational track record and scalability as key factors in their decision to lead the round. The firm emphasized the startup’s ability to deliver decentralized energy solutions that address critical power gaps in the Nigerian market. With a mix of technology, affordability, and market need, Arnergy is well-positioned to deliver strong returns alongside social and environmental impact.
Unlocking New Opportunities in Clean Energy
The capital raise will enable Arnergy to expand its solar deployment capacity, scale its operations, and improve accessibility to clean energy for more Nigerians. The company plans to increase the reach of its solar systems to both urban and underserved rural areas, supporting Nigeria’s broader energy transition goals. With a focus on decentralized energy infrastructure, Arnergy aims to contribute significantly to reducing the country’s dependence on fossil fuels.
Arnergy’s latest funding round underscores a pivotal moment for cleantech innovation in Africa’s largest economy. As traditional energy systems struggle to meet demand, innovative startups like Arnergy are stepping in to offer reliable, sustainable alternatives. With strong investor backing and a clear market need, Arnergy is poised to lead Nigeria’s shift toward a cleaner, more resilient energy future.