Electricity

How a Nigerian solar company plans to power 35,000 SMEs across the country

With a new round of funding, Arnergy is shifting the narrative and providing energy for productive use.

Small and medium-scale enterprises (SMEs)are the backbone of the Nigerian economy. According to industry reports, SMEs across Nigeria contribute over 48% of the nation’s GDP, account for at least 96% of businesses and are responsible for no less than 84% of employment in Africa’s most populous nation.

Data available from the Nigerian Ministry of Trade and Investment puts the number of SMEs across the country at about 37 million. Of that number, at least 9 million falls short of their daily production capacity and economic outcomes to the intermittent and unreliable power supply.

As the Nigerian economy bleeds approximately N10 trillion Naira yearly as a result of irregular power supply, the costs to SMEs that have to operate in the entrepreneurial and business vibrant country Nigeria sits at over $600M USD in annual sales.

Current Infrastructure

Power generation and transmission infrastructures are largely comatose and power supply to citizens of the largest economy in Africa is a luxury. The combined generating output of the four power plants in Nigeria is a meager 4,000MW for 37 million SMEs and 200 million inhabitants. Nigerian businesses suffer an average of 239 hours of monthly power outages in the course of doing business in the regions highest trading nation. A good number of these businesses are large employers of labor, and the incessant power cuts and unreliable grid supply inadvertently lead to deeply negative outcomes in general productivity and labor productivity for the country.

Unsteady electricity supplies are a serious constraint on SME development and expansion. Electricity access and costs are significant problems across the Nigerian economic landscape and power outages and voltage fluctuation contribute to the energy constraints faced by SMEs.The low frequency and long duration of interruptions to electricity supplies are key factors that affect productivity level of SMEs in the country. — MSN Africa

Replacing the Generators for 35,000 SMEs

A large number of businesses and homes in Nigeria use a generator as a coping mechanism for the pains of intermittent electricity. For millions of businesses, generators have become the preferred mitigation option to maintain regular business operations in spite of the steep operating expenses and huge negative effects on the environment.

 

Arnergy’s Solutions for Nigerian Businesses

Arnergy provides energy reliability to small and medium-scale enterprises and economic clusters in Nigeria with flexible acquisition models. We focus on empowering businesses across the country through the design, sale, and installations of affordable and reliable, distributed energy systems.

SMEs in Nigeria — and by extension, emerging economies — form the core of our target markets and our key verticals include general businesses, healthcare, hospitality, education, financial services, and the agri-business sectors. Our unique selling point is a carefully developed, modular business model that encapsulates the variations in the needs and financial capacities of SMEs in Nigeria. The Arnergy business model offers SMEs the opportunity to acquire solar energy products and technologies based on their respective purchasing power and energy needs.

Our Business Models

Arnergy has a three-pronged payment model that caters to the varied needs of SMEs in Nigeria. For SMEs looking for a one-off purchase of their systems, the Outright Sale (OS) option is a preferred model. We cater to our price-sensitive clients through our Lease to Own (LO) model, a customer finance model where customers can own their solar energy assets after making timely installment payments over 36 months. For many SMEs in the country, our most popular model is our flagship Energy-as-a-Service (ES) financial model.

Energy-as-a-Service for Nigerian SMEs

Arnergy’s Energy-as-a-Service is a subscription-based energy service model that allows qualified businesses to pay a fixed monthly fee over a 10- year renewable service contract. For the duration of the subscription agreement, Arnergy is responsible for maintaining and managing the solar power systems at no cost to the client, thus providing reliable, sustainable and affordable energy solutions that give our clients peace of mind and allow them to operate their businesses productively.

To date, Arnergy has helped over 2,000 clients operate their residences and businesses with reliable power. Our modular service models have powered hospitals, pharmacies, banks, hotels, academic institutions, and residences for clients that have chosen the path towards reliable and uninterrupted power supply.

Through our recently concluded Series A round of financing, we are on track to deploy over 100MW installed PV Capacity and power more than 35,000 SMEs across our target impact sectors in Nigeria. For more information on our models and pricing options, feel free to contact us here.

About Arnergy

Arnergy Solar Limited is a distributed utility that offers fully customized solar solutions across emerging markets. Our vision is to provide sustainable solutions to energy reliability issues across emerging markets. Arnergy’s work is guided by a set of core values that include, passion, environmentalism, reliability, dependability, innovation, efficiency and motivation.

Visit our website for more information — www.arnergy.com and follow us on Twitter — @arnergy to stay informed on all our activities.

 

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