Power Shift: How Arnergy Is Leading Nigeria’s Solar Revolution Amid Fuel Price Surge and Policy Shifts

As Nigeria grapples with rising fuel costs and unreliable grid power, the demand for solar energy has surged dramatically—and cleantech startup Arnergy is riding that wave with remarkable momentum. The Lagos-based company recently secured an $18 million Series B round, including a $15 million extension led by Nigerian private equity firm CardinalStone Capital Advisers, fueling its mission to provide affordable, reliable solar power across the country.

The shift comes on the heels of Nigeria’s fuel subsidy removal in May 2023, a long-debated policy that caused petrol prices to skyrocket by nearly 500%. With traditional diesel and petrol generators now prohibitively expensive, solar has transformed from a luxury to a necessity for homes and businesses.

“When we started the business, we positioned solar for uninterrupted power—not as a cost-saving solution,” said Arnergy founder and CEO Femi Adeyemo. “Now it clearly is.”

Arnergy’s lease-to-own product, Z Lite, has seen massive adoption as customers look for cheaper long-term alternatives. While outright purchases dominated revenue in 2022, lease-to-own deals surged in 2023, now accounting for 75% of sales. Customers are saving up to 50% monthly on electricity, prompting many to upgrade their systems or go fully off-grid.

Backed by Breakthrough Energy Ventures—Bill Gates’s energy innovation fund—Arnergy has deployed over 1,800 systems across 35 Nigerian states, totaling 9MWp of solar capacity and 23MWh of battery storage. The company now aims to install 12,000 additional systems by 2029.

But scaling this vision could be complicated by a new government proposal to ban solar panel imports—a move intended to promote local manufacturing. Adeyemo supports domestic production but warns that a premature ban could harm the industry and millions of Nigerians who rely on solar energy.

“Let’s build the infrastructure first before closing the door on imports,” he urged. “Otherwise, we risk stalling progress at a critical moment.”

As Arnergy eyes expansion into Francophone Africa and more partnerships with multinationals, its success could become a blueprint for clean energy transformation—not just in Nigeria, but across the continent.