Africa’s solar energy ecosystem is being energized by a wave of start-ups. These innovative companies are driving the adoption of solar power across the continent, transforming the way people access and use electricity.

The emergence of these start-ups is crucial in a continent where millions of people still lack access to reliable electricity. Traditional power grids are often unreliable and expensive to expand, making solar energy an attractive alternative. Start-ups are capitalizing on this opportunity by offering affordable and sustainable solar energy solutions.

One example is M-KOPA, a Kenyan start-up that provides pay-as-you-go solar power to rural communities. They offer affordable solar home systems that include a solar panel, battery storage, and LED lights. Customers can pay for the systems in small installments using mobile money, making it accessible to those without traditional banking services.

Another start-up making waves is Off Grid Electric, now known as ZOLA Electric. Based in Tanzania, they provide solar energy solutions to both rural and urban communities. Their products range from small solar lanterns to larger solar home systems that power multiple appliances. They also offer financing options to make their products affordable for customers.

Other start-ups are focusing on solar energy for businesses and industries. One such company is SunFunder, a solar finance company based in Tanzania. They provide financing solutions for solar projects, making it easier for businesses to invest in solar energy.

These start-ups are not only addressing the energy needs of Africans but also creating job opportunities and driving economic growth. According to a report by Power for All, decentralized renewable energy companies have already created over 500,000 jobs in Africa.

However, there are still challenges to overcome. Lack of access to finance, policy barriers, and limited infrastructure pose significant obstacles to the growth of the solar energy ecosystem. Governments and investors need to provide support and create an enabling environment for these start-ups to thrive.

In conclusion, start-ups are playing a critical role in powering up Africa’s solar energy ecosystem. Their innovative solutions are making solar power accessible and affordable, improving the lives of millions of people. With the right support, these start-ups have the potential to revolutionize Africa’s energy landscape and drive sustainable development.

Article Rewrite:

Africa’s Solar Energy Start-Ups Illuminate the Continent’s Potential

By Finbarr Toesland

This report was published in Africa Renewal.

LONDON | 27 January 2024 (IDN) — Known as the “Sun continent,” Africa boasts the most hours of bright sunlight compared to any other continent. However, despite having 60 percent of the world’s solar resources, Africa only possesses one percent of solar generation capacity, according to the International Energy Agency (IEA).

The energy production and infrastructure challenges in many African countries result in frequent blackouts, brownouts, and poor electricity supply. The situation worsened with the COVID-19 pandemic and the surge in commodity prices after the invasion of Ukraine, making it even more difficult for poorer Africans to afford energy.

In response, start-ups are emerging as key players in providing access to advanced solar energy solutions for the majority of Africans. By harnessing the power of the sun and transitioning to clean energy, Africa can expect significant economic and social development across the continent.

Solar Energy Brightens Other Industries

SunCulture, based in Nairobi, has raised over $40 million to equip rural farmers with solar-powered irrigation systems. Instead of relying on rainfall or diesel/petrol pumps, farmers can now utilize affordable solar-powered systems that use renewable energy and require minimal maintenance. By installing a solar panel on a farmer’s house and connecting it to a battery-powered water pump, the irrigation system can cover up to three acres.

Mikayla Czajkowski, chief of staff at SunCulture, highlighted the attractiveness of solar energy due to its positive environmental impact, job creation potential, and economic development opportunities. Utilizing solar energy can greatly benefit African nations, especially in remote and underserved regions with limited energy access. It also contributes to reducing the continent’s carbon footprint and combating climate change on a global scale.

An impact survey conducted by measurement company 60 Decibels found that SunCulture’s customers experienced significant improvements. 89 percent of smallholder farmers reported an enhancement in their quality of life, 90 percent increased their production, and 87 percent improved their earnings.

Ambitious Start-Ups

Africa is home to various solar energy start-ups, each with its unique offerings. GridX Africa provides off-grid solar power to farms, safari lodges, and construction projects in Kenya, Mozambique, and Tanzania. Bboxx offers pay-as-you-go solar solutions, while KarmSolar focuses on solar power development and electricity distribution in Egypt.

While these start-ups have commendable ambitions, achieving high levels of growth is challenging. Emily McAteer, founder and CEO of Odyssey Energy Solutions, faced numerous bottlenecks during her decade-long experience financing and building distributed solar projects in Africa and India. To address these challenges, Odyssey provides technology and finance solutions for distributed renewable energy businesses. Streamlining the procurement process and offering tools for solar developers to pitch portfolios to financiers helps these firms access capital more effectively.

Global Initiatives Need Catalytic Capital

According to the Africa Energy Outlook 2022 by IEA, over 500 million people in Africa lack access to electricity. Governments and NGOs have launched various initiatives to boost the solar energy sector in African countries, but their success has been mixed. Addressing a challenge of this magnitude requires a global response.

The US-Africa Clean Energy Finance (US-ACEF) initiative, launched in 2012, aimed to offset early-stage development costs of clean energy projects to attract investment. McAteer believes that the US-ACEF model proved effective, but innovators now require higher levels of catalytic capital to scale up and meet the UN Sustainable Development Goal 7 of ensuring access to clean and affordable energy.

Innovation Underway Across Africa

US-ACEF has already supported 32 projects in countries like Ethiopia, Kenya, Morocco, Namibia, Nigeria, Rwanda, Senegal, South Africa, Tanzania, and Uganda. Nijhad Jamal, managing partner of Equator, a venture capital firm focusing on climate technology in sub-Saharan Africa, agrees that Africa’s solar energy sector has greatly benefited from US-ACEF. He emphasizes the lasting impact of sustainability-focused projects on the solar energy sector, such as the Health Electrification Alliance, which aims to electrify over 10,000 health facilities in Africa.

Africa’s solar energy start-ups hold immense potential to drive economic growth, improve livelihoods, and combat climate change. Continued investment from both public and private financiers is essential to unlock this potential and accelerate the transition to clean and affordable energy across the continent.