Arnergy, a pioneering Nigerian clean energy firm specializing in renewable energy solutions, has successfully secured $3 million in bridge financing. The investment round was led by All On, an off-grid energy impact investment company supported by Shell, marking a significant step forward since Arnergy's $9 million Series A funding in 2019, which saw contributions from All On, Breakthrough Energy Ventures, ElectriFI, and Norfund among others.

Since its inception in 2013 by Femi Adeyemo and Kunle Odebunmi, Arnergy has committed to offering sustainable energy solutions, particularly solar power systems tailored for homes and businesses, to combat grid unreliability and intermittent power issues. The company has since installed over 2MW of electricity capacity for a diverse clientele spanning the hospitality, education, finance, agriculture, and healthcare sectors. With an additional $4 million in debt financing from both local and international lenders, Arnergy has expanded its solar PV systems deployment to over 7MW and installed more than 20MW of lithium battery energy storage solutions.

Nigeria's electricity grid, with a capacity of 12 GW but only a fraction accessible to consumers, presents a considerable challenge, driving the population towards self-generated power from fossil fuels, which are harmful to both health and the environment. The removal of fuel subsidies, rising diesel prices, and macroeconomic difficulties have made energy cost savings crucial for both retail and business customers, creating a demand gap that Arnergy aims to fill.

CEO Femi Adeyemo highlighted the strategic timing of the new funding, aimed at leveraging the fuel subsidy removal and achieving grid parity to re-enter the market. Arnergy's focus has shifted towards making solar electricity more cost-effective than conventional grid power, with the global reduction in solar panel and lithium battery prices despite exchange rate challenges.

READ ALSO - Roam Secures $24 Million Funding to Expand Electric Vehicle Manufacturing in Kenya

Arnergy is now focusing on scaling operations and transitioning to a lease-based sales model, which has become more economically viable than outright purchases due to the drastic increase in diesel prices. The company plans to use the new funds to expand its operations and continue providing services across Nigeria's 36 states through mini-grid developers, while also preparing for a Series B funding round aimed at further growth and expansion.

Caroline Eboumbou, CEO of All On, expressed pride in the partnership with Arnergy, highlighting the company's innovative solutions and commitment to creating a cleaner, more sustainable future for Nigeria. This investment signifies a vote of confidence in Arnergy's ability to scale its operations and accelerate the adoption of clean energy solutions in Nigeria and beyond.